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1999 Press Releases
nFront, Inc. Announces
Record First Quarter |
Contact:
Jeffrey W. Hodges
nFront, Inc.
770.209.4460, ext. 271
jhodges@banking.com
nFront, Inc. Announces Record First Quarter
ATLANTA (November 1, 1999) - nFrontTM (NASDAQ: NFNT, www.nfront.com) today announced record revenues, bank contracts and end users for the first quarter ended September 30, 1999.
Total revenues for the first quarter of fiscal 2000 rose 302% to $2.5 million compared with total revenues of $626,000 in the first quarter a year ago. nFront signed 47 new bank contracts and brought 33 banks online during the first quarter of fiscal 2000. The Company added 22,132 end users during the first quarter, a 67% sequential increase from the fourth quarter of fiscal 1999.
"Our record first quarter reflects the strong demand for our Internet banking services and the acceleration of our marketing and new product development programs following our initial public offering on June 29, 1999," stated Tripp Rackley, chairman and chief executive officer of nFront, Inc. "We had 144 banks online at the end of the quarter and 210 total bank contracts, representing over $92 billion in combined deposit assets. We also added a record number of end users in the first quarter as a result of our new marketing programs and increased number of banks online. On this front, we were very pleased to execute our new marketing partnership with MindSpring during the quarter. We believe that this partnership will have a very positive impact on both bank sales and end user conversion in the coming months."
The Company reported a net loss of $2.6 million, or $0.18 per basic and diluted share, for the first quarter of fiscal 2000 compared with a net loss of $394,000, or $0.06 per basic and diluted share, for the comparable quarter of fiscal 1999. The increased loss was primarily due to higher selling and marketing expenses related primarily to end user conversion programs and increases in headcount to facilitate the Company's future growth plans. nFront expects to report losses in the foreseeable future as a result of its investment in selling and marketing expenses to build its customer base.
"We continue to upgrade our consumer and commercial Internet banking products," continued Mr. Rackley. "nFront is in the process of launching real-time interfaces into several of our client banks. With the combination of real-time balance inquiry and our fat server architecture, which stores multiple months of historical financial data, we believe our products provide banking customers with the most flexible and robust Internet banking solution available today. We also enhanced our nBusiness™ product with new customized cash management features for business customers. We are committed to enhancing our full suite of Internet banking products to assist our client banks in attracting and retaining profitable customers."
On July 2, 1999, nFront completed an initial public offering of 3.5 million shares of common stock. The offering raised approximately $32.5 million in new capital. The net proceeds of the offering were used to repay debt and will be used to expand the Company's sales and marketing programs, to continue product development, and for general corporate purposes.
Atlanta-based nFront, Inc. (NASDAQ: NFNT, www.nfront.com) is a leading Internet banking services company that enables small to mid-size financial institutions to process financial transactions with their customers via bank-branded Web sites. nFront's comprehensive outsourced service is a secure, reliable and scalable way to deliver Internet banking, a key means of attracting and retaining profitable customers. Exclusively endorsed by the American Bankers Association (ABA) and winner of Microsoft's Best Internet Banking Solution Award, nFront provides fully transactional Internet banking development and implementation, Web site design, maintenance and hosting, customer service training and support, and marketing consulting services.
This press release contains statements which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of nFront, Inc. and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and that the actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include fluctuation in operating results, the ability to compete successfully and the ability to integrate acquired companies. Additional factors are set forth in the Risk Factors section of our Registration Statement on Form S-1. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.
1999 Press Releases
