<PAGE>
EXHIBIT 99.3
CUSTOMER INFORMATION MANAGEMENT SYSTEMS (CIMS)
UNAUDITED STATEMENT OF ASSETS ACQUIRED AND LIABILITIES ASSUMED
MARCH 31, 2000
(In Thousands)
Assets Acquired
Current Assets
Accounts receivable $ 724
Unbilled revenue 480
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Total current assets $1,204
Property and equipment, net 291
Software, net 2,032
Goodwill, net 917
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Total assets $4,444
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Liabilities Assumed
Current Liabilities
Customer refunds $ -
Deferred revenue 332
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Total current liabilities 332
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Net assets acquired $4,112
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CUSTOMER INFORMATION MANAGEMENT SYSTEMS (CIMS)
UNAUDITED STATEMENT OF REVENUES AND DIRECT EXPENSES
FOR THE THREE MONTHS ENDED MARCH 31
(In Thousands)
<TABLE>
<CAPTION>
1999 2000
-------------- --------------
<S> <C> <C>
Sales $ 845 $ 559
Cost of Sales 276 513
------ ------
Gross Margin 569 46
Selling & Marketing Expenses 191 515
G&A Expenses 382 150
Depreciation and amortization 98 -
------ ------
Total SG&A 671 665
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Operating Loss $ (102) $ (619)
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</TABLE>
See accompanying Notes to Financial Statements
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CUSTOMER INFORMATION MANAGEMENT SYSTEMS
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
1. Basis of Presentation
The financial statements at March 31, 2000 and for the three months ended
March 31, 1999 and 2000 are unaudited, but included all adjustments
(consisting only of normal recurring adjustments) that the Company
considers necessary for a fair presentation of financial position and
operating results. Operating results for the three month period ended March
31, 1999 and 2000 are not necessarily indicative of results that my be
expect for any future periods.
The accompanying unaudited interim financial statements have been prepared
with the assumption that users of the interim financial information have
read Customer Information Management System's audited financial statements
for the year ended December 31, 1999. Accordingly, footnote disclosures
which would substantially duplicate the disclosures contained in these
audited financial statements have been omitted from these unaudited interim
financial statements. While management believes the disclosures presented
are adequate to make these financials statements not misleading, these
financial statements should be read in conjunction with CIMS' audited
financial statements and related notes. The accompanying financial
statements present the assets, current liabilities and net assets acquired
and the related revenues less direct expenses before income taxes of CIMS
and are not intended to be a complete presentation of CIMS' financial
position or results of operations. The results of revenues less direct
expenses before income taxes are not necessarily indicative of the results
of operations before income taxes that would have resulted if CIMS had been
operated on a stand-alone basis.
The preparation of the financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the amounts reported in the financial statements.
Actual results may differ from those estimates.
2. Acquisition by SEDONA Corporation
In April 2000, CIMS was acquired by SEDONA Corporation, a provider of
customer relationship management ("CRM") software. As a result of this
transaction, SEDONA will enhance the development of its Internet-based CRM
strategy by obtaining a comprehensive CRM product suitable for smaller to
mid-sized businesses and approximately 80 client accounts.
In connection with the transaction, SEDONA issued $1.5 million in 8%
convertible preferred stock and warrants exercisable into 247,934 shares of
SEDONA common stock at an exercise price of $3.025 per share. SEDONA also
will pay Acxiom a 10% royalty fee on all collections of license fees
derived from CIMS technology, such royalties to be not less than $1 million
over the three year period following the acquisition and assume certain
liabilities related principally to the service and warrant contracts
assigned by Acxiom to SEDONA.
