text: **( 2 ) Financial Position and Basis of Preparation**
  
  The Company generated an operating loss of $35.4 million and negative cash flows from operations of $16.4 million for the year ended 
  December 31, 2000, primarily due to the significant costs associated with its investment in delivery, support, re s e a rch and development in its 
  s o f t w a re subsidiary which was acquired in December 1998. Based on the Company’s current business plan and financial projections, the 
  Company expects to reduce operating losses and net cash used in operating activities in 2001. In the Network Services Segment, the 
  Company anticipates that increased transaction levels in its ATM network will result in additional revenues without a corresponding incre a s e 
  in expenses. In addition, the Company expects to further expand its ATM outsourcing services and offer new value-added services, which will 
  p rovide continued revenue growth without significantly increasing direct operating expenses or capital investments. In the Software Solutions 
  Segment, the Company expects reduced operating expenses and improved operating perf o rmance due to a cost re s t ructuring pro g r a m 
  i n t roduced in the first quarter of 2001. The Company believes that the credit facility (see note 13), certain asset sales and cash and cash 
  equivalents at December 31, 2000 will provide the Company with sufficient cash re s o u rces until it achieves positive cash flow. 