Software Maker Pins Hopes on Workflow Product
Marjanovic, Steven, American Banker
Interlinq Software Corp., a developer of mortgage origination systems, hopes its struggling days-in spite of its leading market share and the blessings of low interest rates-are over.
The Kirkland, Wash., company, which has sold its origination software to 2,000 lending institutions, has floundered in recent years with management problems and an unremarkable product line.
The company must also support a geographically diverse customer base that ranges in size from $10 million to $10 billion a year in originations.
Interlinq, formed in 1982, hopes to raise its stature among customers and investors alike with new workflow software, called FlowMan, that can tie together disparate systems and applications to achieve a more productive and efficient operation. And it has honed its story to woo Wall Street investors back into the fold.
Interlinq's stock had languished at around $4 a share since 1995, down from a 1994 high of $8.50. But it has fared better in recent trading. Its shares were selling at $6.50 Monday, up 36% for the year, buoyed in large part by the company's nearly completed program to repurchase 1.5 million shares. Five million shares are outstanding.
The new software helped bolster its revenue to $5.5 million for the quarter ended June 30, a 48% increase from a year earlier.
Net income for the quarter was $745,000, a 111% increase from a year earlier. The numbers exclude several charges, including the $5 million acquisition of Logical Software Solutions Corp.
Interlinq earned 14 cents per share before charges, compared with 6 cents a year earlier.
"Our core business is flourishing," said Jiri Nechleba, president and chief executive officer, who was hired three years ago. …