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Press Release
FOR IMMEDIATE RELEASE
Sento Closes Acquisition of Xtrasource
Integration of U.S. and European operations underway
AMERICAN FORK, Utah - November 8, 2004 — Sento Corporation (Nasdaq: SNTO - News), a leading provider of integrated, multi-channel customer support, announced today that it has completed its previously announced acquisition of the operating assets of Xtrasource, Inc., an advanced contact solution provider. Xtrasource has operations in Raleigh, North Carolina, Enschede, The Netherlands, and Metz, France.
The transaction included the purchase of the assets and assumption of certain liabilities of Xtrasource (approximately $500,000 in net liabilities, as expected) as well as the acquisition of all the stock in its wholly-owned European operations. In line with its plan, Sento has completed the acquisition from a third party of the senior secured debt of Xtrasource, reached settlement agreements with several unsecured creditors, and is using the cash and accounts receivable (as collected) of Xtrasource to payoff the majority of the secured and unsecured liabilities as such have been or will be renegotiated.
Patrick F. O'Neal, President and CEO of Sento, commented, "We are pleased to have completed this important transaction and are proceeding rapidly with our integration plan. In the U.S., we have added a significant number of staff in the Xtrasource Raleigh contact center in response to a current Sento customer's expansion requirements. We are already recognizing revenue and have improved that center's capacity utilization. The Xtrasource acquisition also gives us an established capability in Europe. I returned from my recent visit to France and The Netherlands impressed with the people, processes and business being done there. In addition, our senior management teams from both Europe and the U.S. have completed an offsite planning session, which reconfirmed the similarities of our business philosophies and cultures and identified shared objectives and goals."
Mr. O'Neal concluded, "We have combined two companies that are highly complementary, enhanced our staff with tenured professionals, added important customers, and extended our global footprint. We are now energetically pursuing opportunities for growth, synergy and exceptional customer service as Sento builds value through this accretive transaction."
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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