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eBenX, Inc. (Nasdaq: EBNX) fell 1.19 to 6.06 Friday after the company, which provides business-to-business (B2B) e-commerce services to employers, benefit advisors and health plans, said it enrolled fewer beneficiaries than planned last year, and that its first-quarter results will suffer.
The company said it remains "comfortable" with analysts' fourth-quarter revenue and earnings estimates, and still expects a profit in the 2001 fourth quarter.
First-quarter results, however, will be hurt by the lower enrollment commitment numbers, eBenX said.
As of year-end, the company had 855,000 enrollees, below its target of 900,000 to one million. Delayed decision-making and "uncertainty in economic conditions" caused the company to miss its target, said president and chief executive officer John Davis.
"We continue to believe that we are in the right strategic position for growth and profitability," Davis said. "Our sales funnel remains strong despite some delays in decision-making."
Added Davis: "When you're creating a new category like we are, you can't always force buying decisions on your timetable. But we believe the tipping point will come."
Davis also said the company is cutting expenses, "honing" its marketing messages, and reorganizing its sales organization.
"With both health care costs and concerns about an economic slowdown increasing, we believe benefit managers and CFOs will more readily see the value of our solutions," Davis said.
eBenX says it uses the Internet and other technology to simplify and automate the exchange of data and money among parties in the health and welfare benefit supply chain, resulting in lower costs for employers, health plans and employees.
The company is based in Minneapolis, Minnesota.
