SOURCE: Xign

April 11, 2007 11:00 ET

Business Settlement Network Shown to Drive Corporate Earnings, Deliver Double-Digit Cash Returns

Xign Network Insight™ Shows Early Payment Discount Programs Can Earn More Than 40 Percent Annualized Return on Short-Term Cash

PLEASANTON, CA -- (MARKET WIRE) -- April 11, 2007 -- Xign Corporation, the operator of the leading settlement network for business, today reported working capital benchmark metrics from electronic settlement. The data is based upon transactions processed through the Xign Business Settlement Network.

During the first quarter of 2007, the median Xign customer captured early payment discounts by accelerating payments to 25 percent of their suppliers and earned an average annual cash return of 29 percent. Top quartile Xign customers captured discounts by accelerating payments to nearly one-third of their suppliers and earned an average annual cash return of 32 percent.

By leveraging Xign Network Insight™, Xign's network-based benchmarking service for tracking and improving financial settlement performance, global organizations have access to valuable process and working capital metrics across hundreds of industry categories. According to the current Xign Network Insight report, more than 22 percent of suppliers in the office equipment/office supplies category took early payment discounts. For this supplier category, nearly half (49.99%) of invoices and 19.6 percent of spend involved early payment discounts, generating a 30.6 percent annual cash return to Xign customers. For printing services suppliers, discounts applied to more than 31 percent of invoices and 31 percent of spend, earning a 21.43 percent annualized cash return. In the facilities and maintenance supplier category, discounts were taken on more than 23 percent of invoices and 17.3 percent of spend, earning a 49.42 percent cash return.

"Corporate finance would be hard pressed to find investment alternatives that earn the kinds of return on short-term cash that early payment discounts routinely deliver," said George Fan, Xign vice president of marketing and general manager, Supplier Services. "This earnings potential is changing the way corporate treasurers and cash managers view accounts payable balances. Accelerating payments for discounts is emerging as a corporate finance best practice that improves bottom-line results and moves the needle on net income and earnings per share."

Early payment discount performance is among the 12 best practice metrics of financial settlement performance that are tracked by Xign Network Insight. These metrics -- including on-time payments, cycle time and exception avoidance -- form the basis for tracking and benchmarking processing and working capital performance across the Xign Business Settlement Network.

About Xign Corporation

Xign Corporation operates the leading global settlement network for business. Xign's suite of on-demand applications is the first to automate the complete commerce cycle -- from electronic order delivery to electronic invoice and payment processing -- to streamline operations and monetize working capital. With more than $100 billion in transactions processed and a fast growing network of tens of thousands of global suppliers, Xign offers the most complete and widely deployed service of its kind. Customers include Fortune 2000 companies across many different industries such as Bristol-Myers Squibb, Honeywell, KeySpan, MetLife, Payless ShoeSource, RadioShack Corporation, Southern Company, Sprint, and Verizon Wireless. Xign is headquartered in Pleasanton, CA. For more information, visit www.xign.com.

Xign is a registered trademark of Xign Corporation.

Contact Information

  • Contact:
    Michelle Sabolich
    Atomic Public Relations for Xign
    (415) 402-0230
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