Sedona Reports Revenue Doubled in Second Quarter

Sedona Corporation, a provider of Web-based, vertical customer relationship management (CRM) technology for small and midsize businesses (SMBs), today announced its operating results for the second quarter ended June 30, with revenues doubling over the same period last year.

Nonetheless, the company said revenue was down 9 percent in the first six months of this year as compared to the same time last year.

Revenues reported for the second quarter were $407,000, versus $197,000 in the same quarter a year ago, an increase of more than 100 percent.

The company attributed the quarter’s increase in revenues to the $300,000 of income from related party service revenues for ACEncrypt Solutions and royalty and services fees from indirect distribution channel partners.

Gross Profits Up 29 Percent

Revenue reported for the first six months of 2004 was $694,000, versus $765,000 reported in the six months of 2003, a decrease of 9 percent.

Gross profit reported for the second quarter 2004 was $284,000, versus a loss of $26,000 in the same period one year ago. For the first six months of 2004, gross profit increased 29 percent to $419,000, compared to $326,000 in the first six months of 2003.

For the second quarter of 2004, operating expenses increased to $843,000, compared to $744,000 in the same three month period of 2003. The cost increase, the company said, was due to the completion of the new multivertical version of the company’s CRM application software, Intarsia.

Overall, Sedona said it had increased its operating expenses less than 1 percent, to $1.535 million in first six months of this year, compared to the $1.520 million reported for the six months ended June 30, 2003.

Net Loss Down

Net Loss applicable to common stockholders for the second quarter decreased 47 percent, to $679,000, or ($0.01) per share, versus a loss of $1.282 million, or ($0.02) per share, in the same period one year ago. For the six months ended June 30, 2004, the company reported a net loss of $1.507 million or (.02) per share, or a 25 percent improvement compared to the loss of $2.005 million, or (.04), a year ago.

Sedona is a technology and services provider that delivers Web-based, vertical customer relationship management (CRM) solutions specifically designed and priced for community and regional banks, credit unions and insurance companies.