Sedona Looks Abroad to Sell Customer Relationship Tools
Power, Carol, American Banker
Sedona Corp., a customer relationship software firm that caters to small and midsize financial services companies, is making plans to sell its products overseas.
The Limerick, Pa., company has hired Japan Entry Corp. of Massachusetts to distribute its software in the Far East. Sedona has already "identified 15 candidates who are interested in meeting with us," said Marco Emrich, president and chief executive officer.
Sedona ended the second quarter with a sales backlog of $1.034 million. "We were happy to set the foundation for us to transition to become a comprehensive Internet customer relationship management provider," Mr. Emrich said. "We set up the entire infrastructure for the corporation for year 2000 and in preparation for 2001."
The company now has 90 customers, including Cape Cod Bank and Trust Company and Great Northern Bank of St. Michael, Minn. Since January the staff has grown from 27 to 73, including a sales force that has grown from three to 39.
Today Sedona focuses on financial institutions with $5 billion in assets or less, but it plans to begin selling its customer relationship management software to Internet retailers, Mr. Emrich said.
The company's second-quarter revenues increased 21% from the same period last year, to $238,000, but it reported a loss of $2.8 million, or 11 cents a share, compared with a loss of $1.3 million, or six cents a share, last year.
"We're fairly typical of an Internet start-up company -- not making money " said William K. Williams, Sedona's vice president and chief financial officer. "We have a viable concept of the product, which we believe offers unique features to the market. Financial services is fertile ground for customer relationship management."
But Sedona is not a new company. The company went public in 1985 as Scan Graphics, a manufacturer of high-end digital equipment. It started to move into software in 1995, when it acquired a data mining and mapping business from Lockheed Martin Corp. and took the name Sedona.
"Essentially, we were selling components derived from Lockheed Martin," Mr. Williams said.
In April the company completed an acquisition of Acxiom Corp.'s Customer Information Management System, adding 20 to its staff. "We went from being a component provider to being a comprehensive application service provider of customer relationship management solutions," Mr. Williams said.
Sedona's flagship product is Intarsia, a Java-based customer relationship management application for the Internet. …