WORLD WIDE WEB- Not all credit union tech vendors were stung by a dearth of new sales in fourth quarter `99 due to Y2K
Open Solutions Inc., Glaston-bury, Conn., reported just over $14 million in revenue for 1999. And despite Y2K, the company says it closed seven new core deals in the fourth quarter with record sales volume over $3 million.
"We completed 30 conversions in a year when Y2K anxiety left many technology vendors spending more time scrambling to meet compliance requirements as opposed to focusing on growth," said Mike Nicastro, vice president of marketing and sales for OSI.
OSI was ranked as the fastest growing technology company in Connecticut by Deloite & Touche and 19th in the nation.
In 1999, OSI released an upgraded version 3.4 of The Complete Credit Union Solution. The company also named a new CEO in the fourth quarter, Louis Hernandez, formerly of RoweCom.
Hernandez understands the importance of e-commerce on the financial services arena. "We will always produce a powerful core processing product, but our goal, with the e-commerce and Internet banking technology that we are making available to financial institutions, is to revolutionize the way banking is done on the Internet," said Hernandez.
cavion.com, a credit union only Internet solution provider located in Englewood, Colo., reported revenue for the fourth quarter of 1999 of $233,696, compared to $71,060 for the fourth quarter of 1998 and $179,476 for the third quarter of 1999.
For the year ended December 31, 1999, cavion.com reported a net loss of $4,753,519. In 1998, the company had a net loss of $2,336,114.
"Our year-end results are in-line with company expectations, with revenues growing 188% for the year and 30% in the fourth quarter," said David J. Selina, president and CEO of cavion.com. "We're pleased to report that our net loss was 22% better than our business plan."
cavion.com went public in October 1999. "Our direct and indirect sales efforts showed excellent progress during the fourth quarter of 1999," Selina reported. "As a result of these efforts, more than 100 credit union entities, including credit unions, vendors and leagues, are now connected to cavion.com's network, up from the 64 credit union entities we counted as clients at the time of our IPO."
cavion.com's geographic reach vastly expanded in 1999. The company now serves clients in 22 states, up from two states in 1998.
To serve its growing customer base, cavion.com increased the number of its operations facilities nationwide from one in 1998 to 14 at the end of 1999.
The company recently opened a new headquarters facility, including a new state-of-the-art data center, in the Denver metropolitan area.
Digital Insight, Calasbasas, Calif., announced revenues of $5.7 million for fourth quarter `99, up from $2.5 million for the same period last year. Revenue for year-end `99 were $17.5 million, versus $8.2 million for 1998.
"We ended 1999 with exceptional momentum," said John Dorman, President and CEO of Digital Insight. "We increased our quarterly new customer count by almost 60% from the third to fourth quarter."
Digital Insight reported that it signed 68 new customers in the fourth quarter.
Digital Insight recently completed its acquisition of nFront, making it the largest provider of Internet solutions to financials, based on number of clients. -pgentile@cutimes.com
