-- $4.4 million of managed services revenue, expected to be recognized
through the fourth quarter of 2009
-- $2.1 million of managed services revenue, expected to be recognized
through the second quarter of 2011
In its September 10, 2008 press release, eLoyalty announced the signing of
a contract with a large specialty retailer. Subsequent to that
announcement, the consulting services portion of that contract was
increased by approximately $0.8 million, which will be recognized in the
fourth quarter of 2008 and first half of 2009. However, due to sourcing
delays from a third party, and revenue recognition rules, eLoyalty now
expects to defer approximately $3.6 million in Software Resale and $0.2
million in Service Revenues related to this contract from third quarter
2008 to fourth quarter 2008.
About eLoyalty
eLoyalty helps its customers achieve breakthrough results with
revolutionary analytics and advanced technologies that drive continuous
business improvement. With a long track record of delivering proven
solutions for many of the Fortune 1000, eLoyalty's offerings include the
Behavioral Analytics™ Service, Integrated Contact Solutions and
Consulting Services, each of which enables focused business transformation.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995, including
statements regarding anticipated financial results and other matters that
are not strictly historical in nature. These forward-looking statements
are based on current management expectations, forecasts and assumptions,
and are subject to risks and uncertainties that could cause actual results
to differ materially from those expressed or implied by the forward-looking
statements. The risks, uncertainties and other factors that might cause
such a difference include those described under "Forward-Looking
Statements" and "Risk Factors" in eLoyalty's Form 10-K, Form 10-Q and other
filings with the U.S. Securities and Exchange Commission. Readers are
cautioned not to place undue reliance on forward-looking statements. They
reflect opinions, assumptions and estimates only as of the date they are
made, and eLoyalty Corporation undertakes no obligation to publicly update
or revise any of these forward-looking statements, whether as a result of
new information, future events or circumstances or otherwise.
Contact Information: Contact: eLoyalty Corporation Chris Min Vice President and Chief Financial Officer (847) 582-7222