Nestor, Inc. reports third quarter drop

Nestor, Inc., a provider of intelligent software applications, reported revenues of $568,000 for the quarter ended Sept. 30, a decrease of 50 percent compared to revenues of $1,141,000 for the same period last year. For the nine-month period ended Sept. 30, the company reported revenues of $2,799,000, a decrease of 26 percent compared to revenues of $3,787,000 in 1999. “We are very disappointed with the results of this quarter as our license revenues from new business fell below prior year and budget projections. This year has seen a decline in new orders for existing products and a slowdown in the rollout of our e-commerce products – both affecting direct sales as well as those of our business partners,”‘ said Nigel P. Hebborn, Nestor’s chief financial officer. “Our PRISM® eFraud and eCLIPSE(TM) initiatives have taken longer to ramp up than had been intended. These products entail lower license fees at the outset, followed by transaction-based pricing as installations mature. In order to realize value in these product lines, we are pursuing options to increase working capital and expand our distributor network.”