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ADS Closes ASP Subsidiary

By boston.internet.com Staff     Feedback

The Quincy, Mass., IT consultant and systems integrator for the financial service firms, shutters EarningsInsights, a provider of CRM software for small banks.

After less than a year, ADS Financial Services Solutions , a Quincy, Mass., IT consultant and systems integrator for the financial services companies, has closed its EarningsInsights subsidiary.

Based in Nashville, Tenn., EarningsInsights was a startup application service provider offering customer relationship management (CRM) software for mid-tier financial institutions and small banks.

ADS bought the privately held firm in July for $2 million cash and the issuance of warrants to purchase 300,000 shares of ADS Common Stock at $5.08 per share.

"Revenue from the EarningsInsights offering has not met our expectations and therefore its operations have had a negative impact on our earnings." said Robert Howe, ADS CEO. "Given our continued commitment to returning to sustained profitability and revenue growth, we thought it best to discontinue the operation."

ADS expects to take a pre-tax charge from the discontinued operation of up to $2.7 million in its fourth quarter ending on March 31.

ADS was founded in 1980 and specializes in four areas: CRM; conversions and consolidations; IT strategy and consulting; and e-business.

Shares of ADSC closed at 2.249 on Thursday. Markets are closed today in observance of Good Friday. In the last 52 weeks, the issue has ranged from 1.31. to 2.85. The company has a market value of $29.3 million.

This article was originally published on March 29, 2002
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