Magazine article American Banker

Corillian Moves to Quash Talk of Demise

Magazine article American Banker

Corillian Moves to Quash Talk of Demise

Article excerpt

Corillian Corp., the Portland, Ore., Internet banking software vendor, has a high-profile new marketing chief and a big message for him to deliver: We're not going out of business.

Rick Comandich was the architect of alternative delivery strategy at the old U.S. Bancorp of Portland but retired after its 1997 purchase by First Bank System of Minneapolis. He came out of retirement over a year ago to direct product strategy at Corillian - of which he had been a director in 1999 and 2000 - and recently became its vice president of marketing.

Part of his new job is to deflate rumors that the tech spending slump has put the company's viability at risk.

Corillian, which went public in April 2000, has never shown a profit. But in meetings with market analysts in Boston and journalists in New York last week, Mr. Comandich said it was not true that it would run out of money, leaving its customers - including large banking companies such as J.P. Morgan Chase & Co. and Bank One Corp. - in the lurch.

Corillian reported in July that its second quarter-revenue fell 41%, to just under $9 million. It posted a pro forma loss of 13 cents a share, wider than expected.

But Mr. Comandich said Corillian's revenue backlog - contracts that are signed but still not paid - stood at $40 million at midyear, enough to carry it for three or four quarters even in the absence of new sales.

By yearend, he said, Corillian will show profits before interest, taxes, depreciation, and amortization. He said he could not discuss third-quarter results because the company is in a "quiet period" before their scheduled release this month. …

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