US Postal Service warns it may drop AuthentiDate postmark if revenue doesn’t rise
AuthentiDate Holding Corp. has received notice from the US Postal Service that AuthentiDate’s Electronic Postmark service failed to meet necessary revenue standards between February and April 2005. A strategic alliance agreement between AuthentiDate and the Postal Service names the Schenectady company as the preferred provider of the USPS Electronic Postmark (EPM) service. When the agreement was signed, in August 2002, the parties agreed on certain performance standards, but sales have fallen short. The parties have been discussing a new arrangement since last year, but have been unable to agree on new performance standards. In a letter dated May 23, the Postal Service said it is willing to discuss any plans AuthentiDate may have to improve the EPM system’s revenue, but that it intends to exercise its right to terminate the agreement if AuthentiDate is unable to cure the default.
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