SOURCE: eLoyalty Corporation

September 10, 2008 11:30 ET

eLoyalty Announces Significant Contract Signings

LAKE FOREST, IL--(Marketwire - September 10, 2008) - eLoyalty Corporation (NASDAQ: ELOY), a leading enterprise Customer Relationship Management services and solutions company, today announced that it has recently signed three significant contracts.

Two of these contracts are for large Integrated Contact Solutions (ICS) projects. Winning these projects underscores eLoyalty's core capabilities to design, implement, operate and support complex Contact Center and Speech Enabled solutions that deliver tangible financial value to our clients and an improved experience for their customers. These wins are also significant because they add to our Managed Services customer portfolio and provide a solid base of ICS Consulting Services revenue as the company enters the fourth quarter and the beginning of 2009.

These projects (one with one of the nation's largest municipal utilities, and the other with a large specialty retailer) have a total value of approximately $13.7 million, of which eLoyalty has executed contracts for $9.4 million (eLoyalty expects to execute the remaining contracts over the next several weeks). The $13.7 million consists of the following components:

--  $3.8 million of Managed services that is expected to be recognized
    over the next four years;
--  $5.9 million of Consulting services, the bulk of which is expected to
    be recognized between the third quarter of 2008 and second quarter of 2009;
    and
--  $4.0 million of Product resale that is expected to be recognized in
    the third quarter of 2008.
    

In addition, eLoyalty signed an initial deployment contract for its Behavioral Analytics™ service at a Top 5 HMO. eLoyalty continues to gain traction with its Behavioral Analytics™ service in the Health Care Industry as evidenced by the following:

--  eLoyalty currently serves approximately a dozen large Health Care
    companies, including of the 3 of the largest 5 HMOs and one of the two
    largest Pharmacy Benefits Managers
--  eLoyalty is building deep Health Care expertise based on its analysis
    of approximately 30 million Health Care interactions
    

These contracts evidence eLoyalty's continued momentum in its 2 principal Service Lines (ICS and Behavioral Analytics™). In addition, revenues from these contracts should increase eLoyalty's Managed Services revenues, and are expected to help offset anticipated reductions in traditional consulting revenues.

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
    Email Contact