Bottomline Technologies Reports Fourth Quarter Results; Company Concludes Year of Significant Progress with Improved Operating Results.Business Editors/High-Tech Writers PORTSMOUTH Portsmouth, city, England Portsmouth, city (1991 pop. 174,218) and district, Hampshire, S England, on Spithead Channel. The district includes Portsea (naval station), Southsea (residential district and resort), and the old town of Portsmouth proper. , N,H.--(BUSINESS WIRE)--Aug. 12, 2003 Bottomline Technologies(R) (Nasdaq: EPAY), a leading global technology provider of Financial Resource Management (FRM FRM From FRM Form FRM Fixed-Rate Mortgage FRM Financial Risk Manager (GARP) FRM Fondation pour la Recherche Médicale FRM Financial Resource Management FRM Final Rulemaking FRM Fiber-Reinforced Metal FRM Federal Reference Methods ) software and services, today reported financial results for the fourth quarter and fiscal year ended June 30, 2003. Revenues for the fourth quarter were $18.6 million compared with $17.5 million in the fourth quarter of last year. The net loss for the fourth quarter was $1.8 million, or a net loss per share of $0.11, compared with a net loss of $10.3 million and a net loss per share of $0.66 in the fourth quarter of last year, reflecting a decrease in the amortization of intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. and the overall reduction of operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. during the fiscal year. During the fourth quarter, operating expenses included net acquisition-related charges of $2.1 million, which represented amortization of intangible assets of approximately $2.2 million and a benefit of $24,000 associated with the forfeiture The involuntary relinquishment of money or property without compensation as a consequence of a breach or nonperformance of some legal obligation or the commission of a crime. The loss of a corporate charter or franchise as a result of illegality, malfeasance, or Nonfeasance. of unvested stock options assumed in the acquisitions. Excluding these acquisition-related items, pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net income for the fourth quarter was $349,000, or pro forma net income per share of $0.02. "We completed a year of significant progress, transitioning from quarterly losses to the latest quarter's profitability before acquisition-related items," said Joe Mullen Joseph Mullen (born February 26, 1957 in New York, NY) is a retired American professional ice hockey player who played 17 seasons in the National Hockey League with the St. , president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Bottomline Technologies. "We are encouraged by the continued improvement in the operating results of the Company. In addition to the quarter's financial achievement, we were named as the first accredited accredited recognition by an appropriate authority that the performance of a particular institution has satisfied a prestated set of criteria. accredited herds cattle herds which have achieved a low level of reactors to, e.g. web solution for the new UK electronic payment marketplace which we expect will create new customer opportunities for the upcoming fiscal year." Revenues for the twelve months ended June 30, 2003 were $71.3 million. The net loss for the twelve months ended June 30, 2003 was $27.9 million, or a net loss per share of $1.78. The results for the twelve months ended June 30, 2003 include the cumulative effect of an accounting change in the amount of $13.8 million related to a goodwill impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charge recorded by the Company in connection with the transition to FASB Statement FASB Statement A standard set by the Financial Accounting Standards Board regarding a financial accounting and reporting method. Essentially, FASB statements determine the acceptable accounting practices that Certified Public Accountants use in reporting 142. The net loss before the cumulative effect of the accounting change was $14.1 million, or a net loss per share of $0.90. During the twelve months ended June 30, 2003, operating expenses included acquisition-related charges of $8.9 million, which represented amortization of intangible assets of approximately $8.8 million and amortization of stock compensation charges of $71,000 associated with stock options assumed in the acquisitions. Excluding these acquisition-related charges and before the cumulative effect of the accounting change, the pro forma net loss for the twelve months ended June 30, 2003 was $5.2 million, or a pro forma net loss per share of $0.33. Bottomline has presented non GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). financial measures in the form of pro forma results as part of this earnings release since management believes it is a more accurate measurement of Bottomline's overall operating performance. A reconciliation of the GAAP net loss to the pro forma results for the fourth quarter and fiscal year is as follows:
Three Months Ended Twelve Months Ended
June 30, June 30,
2003 2002 2003 2002
GAAP Net Loss $(1,797) $(10,344) $(27,854) $(38,789)
Cumulative Effect of
Accounting Change - - 13,764 -
Amortization of Intangible
Assets 2,170 8,618 8,830 33,634
Stock Compensation (Benefit)
Expense (24) 104 71 411
Pro forma Income (Loss) $349 $(1,622) $(5,189) $(4,744)
Customer Highlights: -- Sold financial resource management solutions to new and existing customer organizations, including Travelex, Morgan Morgan, American family of financiers and philanthropists. Junius Spencer Morgan, 1813–90, b. West Springfield, Mass., prospered at investment banking. Stanley Stanley, town (1991 pop. 1,557), capital of the Falkland Islands, S Atlantic Ocean, on East Falkland island. It is the main port and trading center of the islands. The name is sometimes written as Port Stanley. Dean Witter Dean Witter may refer to:
Compensation Fund of Arizona Arizona (âr'əzō`nə), state in the southwestern United States. It is bordered by Utah (N), New Mexico (E), Mexico (S), and, across the Colorado R., Nevada and California (W). , GMAC GMAC General Motors Acceptance Corporation GMAC Graduate Management Admission Council GMAC Give Me A Call GMAC Genetic Manipulation Advisory Committee GMAC Genetic Modification Advisory Committee (Singapore) GMAC Give Me A Chance Residential Corp., National City Corporation, United Nations, and Nissan North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . -- Safeco Insurance Company of America completed its rollout of Bottomline's Legal e-Billing service allowing it to streamline the legal invoice An itemized statement or written account of goods sent to a purchaser or consignee by a vendor that indicates the quantity and price of each piece of merchandise shipped. A consular invoice is one used in foreign trade. review process for its nationwide network of claims adjustors. -- Cargo Net Services Corporation is now in production through Citibank e-Billing, representing a biller bill·er n. One that bills, as: a. A clerk who prepares bills. b. A machine used in preparing bills. network with over 4,000 users. -- Continued the successful migration of US technology to Europe by selling WebSeries solutions to AVIVA, Europe's largest insurance company, Eversheds, the UK's largest law firm, and British Airways British Airways in full British Airways PLC International passenger airline based in London. In 1936 British Airways Ltd. was founded through the merger of three smaller airlines. . -- Deutsche Bank Deutsche Bank AG (IPA: /'dɔɪ.tʃə/[1]) (ISIN: DE0005140008, NYSE: DB) (English: German Bank selected Bottomline to provide a fully managed multi-currency check and draft service. The new service is an extension of the bank's global cash management services to corporate and financial institution customers. -- Selected by AMP, a leading international financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. business with approximately 8 million customers worldwide, for financial process outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. of its multi-currency check service. Corporate and Product Highlights: -- Bottomline's WebSeries Payment Platform became the first UK thin client, web enabled, electronic payment solution to be accredited for BACSTEL-IP connection by BACS BACS Bankers Automated Clearing System BACS Banks Automated Clearing System BACS British Association for Canadian Studies BACS British Association for Chemical Specialities BACS Bachelor of Arts Community Studies BACS Bachelor of Administrative and Commercial Studies Limited, the UK's clearing house for electronic payments. -- Selected by SAP as the preferred supplier of BACSTEL-IP software for the SAP Business One SAP Business One is an integrated enterprise resource planning (ERP) software that targets business software requirements of small and medium sized enterprises (SMEs) from SAP AG based at Walldorf, Germany. solution. -- For the second consecutive year, members of the SAP user community named Bottomline's multi-payment platform as one of the top tools that complemented and extended their SAP business solution platform. -- HSBC HSBC Hongkong and Shanghai Banking Corporation HSBC Humane Society of Broward County (Florida) HSBC Humane Society of Bay County (Bay County, Michigan) extended its strategic partnership with Bottomline for an additional 3 years under which Bottomline will support the bank's advance check and bill issuance service. -- The acquisition of certain assets of A1 Group of Companies, Ltd., a BACS service provider offering outsourced BACS payments, was completed. Bottomline will host a conference call to discuss its financial results beginning at 5:00 p.m. today. Please see the corresponding advisory issued August 5, 2003 for information on the call. The call will also be broadcast live at www.bottomline.com and a replay will be available on the website following the call. About Bottomline Technologies Bottomline Technologies(R) (Nasdaq: EPAY) is a leading global technology provider of Financial Resource Management (FRM) solutions and services. Bottomline's comprehensive set of FRM offerings enables businesses and financial institutions to more effectively manage their critical financial transactions, cash decisions and trading partner relationships, leveraging the Web. FRM applications include Electronic Payments and Cash Management, Electronic Invoice Receipt and Management, Electronic Invoice Presentment presentment: see indictment. and Payment (EIPP EIPP Electronic Invoice Payment and Presentment EIPP Electronic Invoice Presentment and Payment ), Electronic Banking and Information Reporting. Founded in 1989, Bottomline maintains its corporate headquarters in Portsmouth, NH and international headquarters in Reading, England. For more information, visit Bottomline on the Web at www.bottomline.com, or dial (800) 243-2528 or (603) 436-0700. Cautionary Language This announcement contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties, including statements regarding future market opportunities. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. Among the important factors which could cause actual results to differ materially from those in the forward-looking statements are competition, market demand, technological change, strategic relationships, recent acquisitions, international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. and general economic conditions. More information about potential factors that could affect the company's business and financial results is included in our most recent Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and Quarterly Report on Form 10-Q Form 10-Q See 10-Q. including (without limitation) under the captions, "Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Financial Condition and Results of Operations," and "Factors That May Affect Future Results", which are on file with the Securities and Exchange Commission (http://www.sec.gov). The accompanying condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. statements of operations and balance sheets are an integral part of this announcement.
Bottomline Technologies
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
Three Months Ended
June 30,
2003 2002
Revenues:
Software licenses $3,324 $3,525
Service and maintenance 11,022 9,441
Equipment and supplies 4,271 4,502
Total revenues 18,617 17,468
Cost of revenues:
Software licenses 657 517
Service and maintenance 4,709 4,525
Equipment and supplies 3,529 3,360
Total cost of revenues 8,895 8,402
Gross profit 9,722 9,066
Operating expenses:
Sales and marketing 3,681 5,288
Product development and engineering:
Product development and engineering 3,035 3,408
Stock compensation expense (24) 104
General and administrative 2,583 2,406
Amortization of intangible assets 2,170 8,618
Total operating expenses 11,445 19,824
Loss from operations (1,723) (10,758)
Other income (expense), net (59) 271
Loss before provision (benefit) for
income taxes (1,782) (10,487)
Provision (benefit) for income taxes 15 (143)
Net loss $(1,797) $(10,344)
Net loss per share:
Basic and diluted $(0.11) $(0.66)
Shares used in computing net loss per share:
Basic and diluted 15,938 15,665
Pro forma (excluding acquisition-related
charges):(1)
Net income (loss) $349 $(1,622)
Basic and diluted net income (loss) per
share (2) $0.02 $(0.10)
(1) Pro forma presentation excludes amortization of intangible assets
and amortization of stock compensation expense, net of tax.
(2) Shares used in computing pro forma diluted net income per share
for the three months ended June 30, 2003 were 16,442.
Bottomline Technologies
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
Twelve Months Ended
June 30,
2003 2002
Revenues:
Software licenses $13,021 $16,023
Service and maintenance 40,865 38,169
Equipment and supplies 17,379 19,794
Total revenues 71,265 73,986
Cost of revenues:
Software licenses 1,936 1,455
Service and maintenance 20,358 18,506
Equipment and supplies 13,615 14,457
Total cost of revenues 35,909 34,418
Gross profit 35,356 39,568
Operating expenses:
Sales and marketing 17,084 19,504
Product development and engineering:
Product development and engineering 12,124 13,795
Stock compensation expense 71 411
General and administrative 11,088 11,016
Amortization of intangible assets 8,830 33,634
Total operating expenses 49,197 78,360
Loss from operations (13,841) (38,792)
Other income (expense), net (189) 63
Loss before provision for income taxes and
cumulative effect of accounting change (14,030) (38,729)
Provision for income taxes 60 60
Net loss before cumulative effect of accounting
change (14,090) (38,789)
Cumulative effect of accounting change (13,764) -
Net loss $(27,854) $(38,789)
Basic and diluted:
Loss per share before cumulative effect of
accounting change $(0.90) $(2.63)
Cumulative effect of accounting change (0.88) -
Net loss per share $(1.78) $(2.63)
Shares used in computing basic and diluted net
loss per share: 15,667 14,725
Pro forma (excluding acquisition-related
charges):(1)
Net loss $(5,189) $(4,744)
Basic and diluted net loss per share $(0.33) $(0.32)
(1) Pro forma presentation is before the cumulative effect of
accounting change and excludes amortization of intangible assets
and amortization of stock compensation expense, net of tax.
Bottomline Technologies
Unaudited Condensed Consolidated Balance Sheets
(in thousands)
June 30, June 30,
2003 2002
Assets
Current assets:
Cash and cash equivalents $25,802 $25,931
Accounts receivable 13,281 15,242
Other current assets 4,148 4,213
Total current assets 43,231 45,386
Property and equipment 6,447 6,955
Intangible assets 22,660 43,540
Other assets 1,024 1,689
Total assets $73,362 $97,570
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $5,712 $5,310
Accrued expenses 6,005 5,671
Deferred revenue and deposits 13,697 13,452
Current portion of long-term debt 253 253
Total current liabilities 25,667 24,686
Long-term debt - 253
Total liabilities 25,667 24,939
Stockholders' equity
Common stock 17 16
Additional paid-in-capital 164,809 164,022
Deferred compensation (78) (474)
Accumulated other comprehensive income 1,628 182
Treasury stock (4,250) (4,538)
Retained deficit (114,431) (86,577)
Total stockholders' equity 47,695 72,631
Total liabilities and stockholders' equity $73,362 $97,570
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion