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Press Release
FOR IMMEDIATE RELEASE
Sento Completes New Loan Agreement with Silicon Valley Bank; Announces Refinancing of Convertible Debentures
Company reinforced by new confidence of investors in increasing level of financial strength
AMERICAN FORK, Utah - April 16, 2003 - Sento Corporation (Nasdaq: SNTO - news) today announced it has a new loan agreement with Silicon Valley Bank and has completed the refinancing and retirement of its $1.3 million in convertible subordinated debentures that matured in February 2003.
Because Sento was able to retire $300,000 of the previously-issued debentures, the refinancing of the $1.3 million in convertible subordinated debentures results in Sento's having only $1 million of newly issued debentures currently outstanding. The newly-issued debentures are convertible into Sento's common stock at $1.75 and have attached warrants to purchase 250,000 Sento common shares with an exercise price of $2.25.
Sento's new loan agreement with Silicon Valley Bank provides a revolving line of credit in the amount of $2.5 million, and the refinancing of equipment loans. The amount available under the revolving line of credit is based on Sento's outstanding accounts receivable.
"We are extremely pleased with the completion of the refinancing of our convertible debentures and our new bank loan agreement with Silicon Valley Bank," stated Patrick O'Neal, Sento's president and chief executive officer. "This new financing allows us to now focus on acquiring new clients and increasing revenues while addressing the market's concerns regarding the Company's financial stability. In addition, the renewed confidence of new and existing investors and of the bank returns Sento once again to the debt ratios that more fairly represent the financial condition of the Company."
About Silicon Valley Bank
Silicon Valley Bank provides diversified financial services to emerging growth and mature companies in the technology and life sciences markets, as well as the premium wine industry. Through its focus on specialized markets and extensive knowledge of the people and business issues driving them, Silicon Valley Bank provides a level of service and partnership that measurably impacts its clients' success. Founded in 1983 and headquartered in Santa Clara, Calif., the company serves more than 9,500 clients across the country through 27 regional offices. More information on the company can be found at www.svb.com.
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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