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Press Release
FOR IMMEDIATE RELEASE
Sento Receives $6.7 Million in Equity Funding
AMERICAN FORK, Utah, March 31, 2004 — Sento Corporation (Nasdaq: SNTO - news), a leading provider of integrated, multi-channel customer support, has completed a private institutional equity funding placed by The Shemano Group.
In a transaction completed yesterday, Sento sold 634,962 shares, in an at-the-market transaction, at $10.56 per share, to several institutional investors in a private placement. The Shemano Group, a leading San Francisco-based investment banking and institutional broker/dealer firm, facilitated the private equity placement. Sento also issued 126,992 42-month warrants at an exercise price of $12.67, which are not exercisable for six months. Sento has contractually committed to register the resale of all of these securities in the near future.
None of the common stock, the warrants nor the common stock underlying the warrants (collectively, the "Securities") have been registered under the Securities Act of 1933 or any state securities laws. Unless so registered, the Securities may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act of 1933 or any state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
Sento management expects to use the net proceeds of this offering to reduce the amount of borrowings under its line of credit and for working capital and general corporate purposes, including expanding their direct sales efforts. In addition, Sento anticipates that these funds will accelerate the enhancement of its current software tools offerings.
Mr. Pat O'Neal, Sento's President and CEO said, "Sento's head count has more than doubled in the past 9 months, and we anticipate continued, solid growth. As we recently stated, we are also increasing our gross profit margins over past quarters as we lay the groundwork for the future. This funding assures us that our growth will not outstrip our capital as we move to the next level of our evolution as a premier customer relationship provider."
SENTO PROFILE
Sento Corporation (www.sento.com) is one of the industry's most innovative providers of outsourced customer support services. Sento employs right channeling to create custom solutions that integrate live support with the company's best-in-class software solutions. Sento's Customer Choice PlatformSM allows customers to make choices in communication channels from a range of web-enabled self-service options with live support available at every critical point. Sento focuses on the inter-relationship among voice, chat, email, self-service and web forums. Sento targets its customer acquisition, customer service and technical support solutions to a diversified portfolio of clients in multiple vertical segments. Sento's solutions can provide value-added customer support at significant cost reductions when compared to other, traditional outsourced models. With operations in the U.S., The Netherlands, and France, plus partnerships in India and other low-cost regions, Sento provides customer support in 19 languages.
FORWARD LOOKING STATEMENTS
Statements in this press release, which are not purely historical, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements encompass Sento's beliefs, expectations, goals, hopes or intentions regarding future events. Words such as "expects," "intends," "estimates," "believes," "anticipates," "should" and "likely" also identify forward-looking statements. All forward-looking statements included in this release are made as of the date hereof and are based on information available to Sento as of such date. Sento assumes no obligation to update any forward-looking statement. Actual results could differ materially from those anticipated for a number of reasons, including, among others: the Company's stock price has historically been volatile; difficulties encountered in post-acquisition integration and operation of the acquired assets including retaining existing clients of the acquired company; variations in market and economic conditions; the effect on the Company's earnings of the repricing of options; the Company's dependence on its limited number of key clients; failure to renew existing client contracts for continuation of services; reduction in services requested by the Company's clients resulting in lower revenues for the Company; the Company's ability to complete negotiations and execute client agreements; risk of emergency interruption of the Customer Contact Solutions operations; and other unanticipated factors. Risk factors, cautionary statements and other conditions, which could cause actual results to differ from the Company's current expectations, are contained in the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-KSB, as amended.
Contact:
Patrick O'Neal
President, Chief Executive Officer and Director
Sento Corporation
801-772-1417
pat_oneal@sento.com
Anthony J. Sansone
Chief Finance Officer and Corporate Secretary
Sento Corporation
801-772-1410
tony_sansone@sento.com
Brokers and financial industry members
Laurie S. Roop
President, Shareholder Relations
435-652-3884
laurie@shareholder-relations.net
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