Magazine article American Banker

Intelidata Chopping Back to Stem Downturn

Magazine article American Banker

Intelidata Chopping Back to Stem Downturn

Article excerpt

Investors have put Intelidata Technologies Corp. in the doghouse, but the company hopes to return to financial health soon.

Shares of the interactive technology company have languished around $3 in recent months, down from about $10 a year ago. In August the Herndon, Va.-based company reported a second-quarter loss of 9 cents a share. Investors had expected Intelidata, which sells home banking, shopping, and telecommunications products, to earn 4 cents.

"From an investor's perspective, 1997 has been a disappointment across the board for home banking technology providers," said Intelidata president John C. Backus.

Next year will be different, he said, as banks take back much of the business they handed off to third parties.

Mr. Backus said bankers will ask themselves, "Why in the world did I outsource the data warehouse?"-which contains their crucial customer information. Intelidata, among others, might help banks consolidate that control.

Intelidata, however, faces near-term challenges as a vendor of technology to banks rather than to end users. Like the banks, it is waiting for Microsoft Corp., Intuit Inc., Integrion Financial Network, and others to reach agreements on technical standards that will encourage more significant technology investments.

"The dust will settle by the end of this year," Mr. Backus said. "Standards are painful to develop but good for the industry when they do develop."

He said Intelidata has the potential to sell tens of millions of dollars worth of its Interpose Financial Engine over the next six months. The system can integrate with a variety of applications, such as Intuit's Quicken software or Checkfree Corp.'s back-end system for payment processing.

Interpose servers, data warehouses, and associated banking applications are installed at 23 of the top 100 banks. …

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