Small Office Home Office Strategies
InteliData Technologies Corp. recently announced the accomplishment of an important milestone in its ongoing strategy of monetizing its underperforming telecommunications assets. Through the sale of certain inventory to CIDCO and the expected collection of legacy Caller ID adjunct accounts receivable from telephone companies, InteliData completed its exit accounts receivable factoring company from the caller ID adjunct business.
InteliData completed the sale of its entire Caller ID adjunct inventory to CIDCO in a deal valued in excess of $3.5 million. Under the terms of the transaction, CIDCO has purchased InteliData's entire caller ID adjunct inventory, including the tools and intellectual property associated with the adjuncts, and assumed InteliData's obligations for warranty and customer service expense for its installed customer base.
"By selling our adjunct inventory, ongoing warranty and customer service obligations to CIDCO, we are able to provide our telephone company customers, as well as the millions of consumers using our products, with a seamless transition as we exit this business," said the InteliData President and CEO. "CIDCO was the logical purchaser of our adjunct assets due to their market leadership position in the Caller ID adjunct field. This sale allows us to focus our telecommunications resources on the growing small office/home office (SoHo) market segment."
In addition to the sale of the Caller ID adjunct inventory, InteliData also will collect over $8 million in Caller ID adjunct accounts receivable from former Regional Bell Operating Company (RBOC) and other adjunct customers during the upcoming months. The only Caller ID adjunct asset which InteliData will retain is an installed lease stream of approximately 120,000 customers that has a net present value in excess of $7.5 million. "We will move aggressively over the coming months to monetize our single- line Caller ID telephone inventory, our Connecticut facility and other Caller ID legacy assets," added Backus. "As we have previously communicated, we remain committed to shedding underperforming product lines, assets and business units so that we can focus our resources on other areas, such as our home banking software business, where we can become a market leader." InteliData, with headquarters in Herndon, Va., develops and markets interactive products and services for the financial services and telecommunications industries. InteliData is a leading supplier of home banking software to financial institutions and financial service providers. The Company's Interpose Financial Engine(TM) is a real-time system with connectivity from bank legacy systems to home banking delivery and provides a popular home banking connectivity software application that runs on the IBM mainframe. InteliData is also emerging as a leading telecommunications solutions provider to the rapidly growing small office/home office market with multi line telephony products available through retail outlets, telephony distributors and dealers and telephone companies.
Account Receivables
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