eAutoclaims.com(TM) Issues Guidance as a Result of New Marketing Programs/Alliances
March 18 2004 - 11:53AM
PR Newswire (US)
eAutoclaims.com(TM) Issues Guidance as a Result of New Marketing
Programs/Alliances OLDSMAR, Fla., March 18 /PRNewswire-FirstCall/
-- eAutoclaims, Inc. (BULLETIN BOARD: EACC) , which provides online
claims management for the auto insurance industrythrough both
application services provider (ASP) and outsourcing solutions,
recently announced a new Co-Marketing Agreement with ADP Claims
Service Group. Today the Company issued guidance as a result of its
new strategic alliance agreement and otherinternal marketing
programs that the Company intends to roll out over the next 18
months. The Company expects to adopt a different revenue
recognition policy on all new business generated from their
Co-Marketing Agreement with ADP Claims Services Group. The Company
will recognize only net revenue, after the cost of the repair, on
all of the sales from this new Co-Marketing Agreement. The
difference in the revenue recognition policy is caused by the
change in the structure of the transaction under the agreement.
This is mainly a result of ADP, not EACC, being obligated to pay
the repair shop. Therefore, while revenue per repair will be
reduced, the margin percentage per repair will increase
substantially. The Company will continue to recognizegross repair
revenue on all other sales, as the Company has done historically.
According to Eric Seidel, President and CEO, "Starting in February,
we have been investing heavily to increase our infrastructure and
to scale-up our current staffing levels for the anticipated growth
in business." Seidel continued, "In the short-term, this will have
a negative impact on our quarterly numbers. However, while there is
no guarantee, we expect to show impressive growth in both revenue
and net income in fiscal 2005." The Company's new fiscal year
begins in August. Under the adjusted financial model, inclusive of
the ADP co-marketing business, the Company expects to report
revenues of $40 million and net profit of $2 million for the fiscal
year ending July 31, 2005. The Company has also announced the
expected expansion of their heavy equipment business in the coming
year. Eric Seidel, President and CEO, said, "We are excited about
the expected growth in our heavy equipment business over the next
18 months. This is also considered in our numbers for next year.
The new heavy equipment business is already beginning to grow."
About eAutoclaims eAutoclaims is a business services company that
provides the insurance industry with claims management services
through both ASP and integrated outsourcing solutions. The
Company's clients are insurance companies, fleet management
companies and insurance services companies. eAutoclaims' solutions
streamline the claims handling process, decreasing the overall time
and cost required to process a collision claim and reducing average
paid losses for its clients. The Company handles repair estimates,
repair audits and claims systems administration services for
automobile claims that are processed and tracked via the
eAutoclaims Web-based platform and network of service providers.
For More Information, contact: Jeff Dickson (813)-749-1020 ext. 202
This announcement contains "forward-looking statements." Words such
as "anticipate," "believe," "estimate," "expect" and other similar
expressions as they relate to the Company and its management are
intended to identify such forward-looking statements. Although the
Company and its management believe that the statements contained in
this announcement are reasonable, it can give no assurances that
such statements will prove correct. The Company's guidance is based
on a number of factors that may affect actual results, which
include the timing of rollout of the ADP program, number of claims
processed, ability to meet the requirements imposed by ADP under
the agreement, ability to raise the capital necessary to implement
this program, and technological initiatives and infrastructure
improvements. Factors that could affect the occurrence of events or
results discussed herein are also included with those mentioned in
the Company's filings with the Securities and Exchange Commission.
DATASOURCE: eAutoclaims, Inc. CONTACT: Jeff Dickson, eAutoclaims,
+1-813-749-1020, ext. 202, or Web site: http://www.eautoclaims.com/
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