InteliData Technologies Corp. today announced a continuation of its plan to increase the value of InteliData common stock by bringing in additional senior management and focusing its resources on its two core business groups: InteliData Telecommunications, which includes its Caller ID and small office/home office (SOHO) product lines, and InteliData Financial Solutions, comprised of the Company’s home banking software products.
Additionally, InteliData will seek a buyer for its interactive services business, operating under the SmartTime Network brand name. NationsBank Montgomery Securities, Inc. will act as InteliData’s financial advisor in the sale as well as in a series of follow-on transactions that have as their goal the creation of substantial value in both the telecommunications and financial solutions businesses.
To develop greater focus and capitalize on the opportunities in the electronic banking arena, the InteliData Board of Directors announced that InteliData President and CEO John C. Backus will devote substantially all of his efforts to the InteliData Financial Solutions business, reporting to the Board of Directors.
In addition, the InteliData Board announced the appointment of Brian A. Bogosian as the new president and CEO of the InteliData Telecommunications group. In his new role, Mr. Bogosian will report directly to InteliData’s Board of Directors, and will also be appointed to the Board. Mr. Bogosian comes to InteliData with over 15 years of experience in the telecommunications business, including broad experience in systems technology, and network services on behalf of the Regional Bell Operating Companies (RBOC) to business and residential customers. He most recently served as president of USTeleCenters, Inc., of Boston, and brought innovative bundled communications products and services years ahead of their time. “I have known and worked with Brian for years,” added Berge Ayvazian, executive vice president of the Yankee Group’s telecommunication practice. “His telecommunications experience, business acumen and unique vision will be instrumental in taking InteliData’s telecommunications group to new heights.”
“Our current stock price does not accurately reflect the true value of InteliData’s underlying franchise, technology and operating assets,” commented InteliData Chairman of the Board William F. Gorog. “InteliData’s mission has always been to deliver value for our shareholders. By bringing seasoned leaders to the two businesses, we expect to accomplish several things.”
“First, we will simplify the business story for our investors, hopefully resulting in more focused analytical support. Second, we will allow two very different businesses to focus on their core markets and opportunities with focused and dedicated, yet separate, management teams. Our balance sheet remains strong, with no debt, with approximately $10 million in cash, and a virtually untapped $15 million credit facility,” added Gorog.
“I have worked with John Backus since we started InteliData,” added Gorog, “and I am excited that he will now be able to devote all of his time and energy to building our electronic banking business into a major industry player. With seven years of home banking experience under his belt, in an industry where many companies are not even three years old, John’s background and experience makes him the best choice to grow InteliData Financial Solutions into the leading home banking software company. And, our ‘debut’ at the Retail Delivery conference this month, where we were featured as a finalist for the Microsoft Industry Solutions award, gives us a great platform upon which we can launch this business.”
Investors who are interested in learning more about InteliData’s industry ‘debut’ at the Retail Delivery conference can contact investor relations for a videotape presentation featuring Microsoft’s Chairman and CEO Bill Gates and InteliData Financial Solutions Chief Technology Officer Doug Braun.
“InteliData Financial Solutions will build upon our highly acclaimed Interpose and OFX home banking solutions,” said Backus. “We will move quickly, internally, as well as through small, targeted acquisitions, such as our successful Braun-Simmons acquisition and Home Financial Network investment, to create the leading electronic banking software company.”
With Backus dedicated to the Financial Solutions business, the InteliData Board appointed Brian Bogosian as the new leader of the telecommunications business. “I am eager to capitalize on the telecommunications opportunities that are in front of us at InteliData,” commented Bogosian. “My commitment to our shareholders and the Board of Directors is to re-ignite the growth engine in InteliData’s telecommunications business while also returning us to profitability.”
“Our telecommunications business will focus on high technology products and services with the potential for rapid growth, higher gross margins and near-term profitability,” said Bogosian. “Those products and service offerings in the telecommunications group that don’t meet these criteria will be sold or otherwise monetized in 1998.”
“One great example of the type of business we are pursuing, and winning, is a contract we were just awarded by an RBOC to both acquire new Caller ID customers while also upgrading a significant installed customer base to newer Caller ID on Call Waiting equipment,” added Bogosian. “This contract should be a significant contributor to our results in 1998.”
InteliData will hold a conference call tomorrow at 9:00 a.m. (EST). InteliData investors can access the call by dialing 1-800-633-8938. A replay of the conference call can be accessed on Friday, December 19, beginning at 11 a.m. (EST), or all day on Monday, December 22, by dialing 800-633-8284 and entering code 3572113.
InteliData, with headquarters in Herndon, Va., develops and markets interactive products and services for the telecommunications and financial services industries. The InteliData Telecommunications group is a proven leader in providing turnkey network services subscriber acquisition and management programs to telephone companies and is emerging as a telecommunications solutions provider to the rapidly growing small office/home office market. In addition, the InteliData Financial Solutions group is a leader supplier of home banking software with over 20 of the top 100 U.S. financial institutions as customers.
“Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This release contains forward looking statements that are subject to risks and uncertainties, including, but not limited to the Company’s ability to successfully implement its recently announced telecommunications and financial services business strategies, the effects of a down-sized workforce on its operations, the impact of competitive products, pricing pressure, product demand and market acceptance risks, timing of customer programs and payments, reliance on key strategic alliances, the ability to attract and retain key employees, manufacturing delays, outsourcing partners, the availability of key component parts, availability of cash for growth, product obsolescence, inventory levels and valuations, ability to reduce product costs, fluctuations in operating results, ability to continue funding operating losses, delays in development of highly complex products and other risks detailed from time to time in InteliData filings with the Securities and Exchange Commission. These risks could cause the Company’s actual results for 1997 and beyond to differ materially from those expressed in any forward looking statements made by, or on behalf of, InteliData.Details