Symbility Solutions (TSX-V:SY,StockForum), a Toronto-based provider of cloud-based and smartphone/tablet-enabled claims technology for property, casualty and health insurance industries, announced today that its largest US customer had renewed their contract through to the end of 2014, but planned to transition to another platform and would not renew beyond that point.
According to the news release, the renewal will garner Symbility US$8.5 million in an advance payment that will bolster their cash position to $20 million or $0.10 per share.
Execs at Symbility estimate revenues for the year will hit between $28 to $29 million with an adjusted EBITDA between $3.0 and $4.0 million.
Symbility CEO, James Swayze, commented on the company's future, “Symbility has more qualified new customer opportunities in its pipeline than ever before and we are confident that we will earn multiple new contracts in a number of countries around the world in 2014.”
Swayze went on, “Outside the United States, Symbility has achieved first mover advantage in new markets such as Europe, where until recently insurance carriers had relied upon their internal systems to process property claims.”
He then noted, “Our international insurance carrier customers include the top four carriers in the United Kingdom and three leading carriers in each of Germany and South Africa. In 2013, we generated approximately one-third of our revenue outside of the United States.”
Symbility Solutions was in the news recently when the company signed contracts with TEN STAR Group Benefit Specialists.
Shares dropped 27.91% on the news to $0.31 per share.
Currently there are 208.5m outstanding shares with a market cap of $64.6 million.