Debt Resolve Pares Losses in Third Quarter

Collections technology provider Debt Resolve Inc. (AMEX: DRV) yesterday offered in a press release fuller information on its third quarter results, reporting a net loss of $3.3 million, compared with a loss of $6.5 million in the third quarter year ago.   

White Plains, N.Y.-based Debt Resolve in a Monday filing with the U.S. Securities and Exchange Commission did not list profits and losses, but reported third quarter revenues of $526,818 compared with $30,617 in the same period a year ago (“Debt Resolve Revenues Look Good but Prospects Mixed” 11/20).

The company also reported in its press release that its Co-Chairmen James D. Burchetta and Charles Brofman, and board member William Mooney advanced the company $1 million from June to November 16.

Debt Resolve reported that during the quarter it added a top 10 U.S. bank as a client; increased customer registrations by 27 percent and account settlements by 20 percent; settled a patent infringement suit with Apollo Enterprise Solutions; launched in the Benelux region of Europe and signed a major United Kingdom-based creditor; and that its call-center collection subsidiary First Performance Corp. added a top 10 debt purchaser as a client.

The huge jump in revenues in the third quarter was attributable to $512,417 collected by First Performance, while revenues of $13,810 were generated from contingency fees on users of its Internet-based bidding system. Debt Resolve purchased First Performance in January. Debt Resolve in October announced it would no longer bid on debt portfolios through a subsidiary, but will partner with debt buyers to purchase portfolios.