SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) September 19, 1997
AVERT, INC.
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(Exact name of registrant as specified in its charter)
Colorado 0-239052 84-1028716
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(State of other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
301 Remington, Fort Collins, Colorado 80524
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(Address of principal executive offices) Zip Code
Registrant's telephone number, including area code: 970-484-7722
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Item 5 Other Events
a) Avert, Inc. announced that third quarter revenue growth will be less
than analysts estimates of 33.5%.
Item 7 Financial Statements and Exhibits
c) Exhibits
36 Press release dated September 19, 1997 regarding
third quarter anticipated revenue growth
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<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
AVERT, INC.
October 8, 1997 By: /s/ Dean A. Suposs
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Date Dean A. Suposs
President
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EXHIBIT INDEX
Exhibit No. Exhibit Description Page
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36 Press Release, dated September 19, 1997 5
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EXHIBIT 36
FOR IMMEDIATE RELEASE: NEWS
September 19, 1997 Nasdaq National Market/AVRT
http://www.avert.com
AVERT, INC. ANNOUNCES THIRD QUARTER NET REVENUE GROWTH WILL
BE LESS THAN ANALYSTS ESTIMATES OF 33.5%
The Company Still Expects Record Revenues and Double Digit Profitability
FORT COLLINS, CO - Avert, Inc. (Nasdaq National Market/AVRT), an information
services company that provides employment background checks to a growing
nationwide customer base, today announced that third quarter revenue growth will
be less that analysts estimates of 33.5%.
"We expect net revenue growth for the third quarter to be less than 25% as
compared to third quarter 1996," said Dean Suposs, president at Avert, Inc. "We
still expect to have record revenues and double digit profitability, however our
revenue growth will not be what we expected it to be."
The Company believes that the decline in growth rate is primarily attributable
to two factors: 1) The loss of several large customers in the fourth quarter
1996 due to pricing. In 1996, the Company increased prices to bring these
customers to a profitable level, which resulted in a loss of business. Avert is
currently running pilot programs with several large customers that have
significant revenue potential where the prices are set with margins to realize
the profitability that the Company is accustomed to. 2) A change in spending
behavior by the Company's customers due to historic low unemployment rates that
have reduced the sales per customer. The Company's new customer growth is still
strong, however, because there are less applicants to check, each customer is
spending less. To counter this, the Company is currently focusing marketing
efforts in areas of higher unemployment and expanding its product offering to
increase sales per customer.
"We are very optimistic about the market opportunities in the area of
outsourcing human resource services," added Suposs. "We have invested time and
money in our technology system and in distribution partnerships that will enable
us to capitalize on the expanding demand in this area. We will be able to
rapidly introduce new products, provide a seamless interface for our partners'
client base, and offer customized solutions to our customers with a technology
option that is the best in the business. At the same time we anticipate reducing
our cost per transaction while increasing our turn-around."
Through its headquarters in Fort Collins, Avert is an information services
company that provides thousands of employment backgrounds checks daily to
employers nationwide. Avert guarantees that its products and services are the
most current and accurate available. Products and services include criminal
records, civil records, workers' compensation histories, driving records,
previous employment verification, credit histories, education verification,
social security number validation, and a KnowledgeLink Help Desk to answer
customers' hiring and compliance questions.
Contact: Investor Relations
800.367.5933
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