Bottomline Technologies Reports Fourth Quarter Results; Company Concludes Fiscal Year in Strong Financial Position With New Offerings.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. 23, 2002 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 June: see month. 30, 2002. Revenues for the fourth quarter were $17.5 million. 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 loss for the fourth quarter, excluding acquisition-related amortization and stock compensation expense, was $1.6 million. On a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis, pro forma net loss per share excluding such charges was $0.10. During the quarter, 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. included acquisition-related charges of $8.7 million, which represented 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. of $8.6 million and amortization of stock compensation charges of $104,000 associated with stock options assumed in the acquisitions. Including these acquisition-related charges, the net loss for the fourth quarter was $10.3 million, or a net loss per share of $0.66, compared with a net loss of $10.6 million and a net loss per share of $0.78 in the quarter ended June 30, 2001. Revenues for the fiscal year ended June 30, 2002 were $74.0 million. Pro forma net loss for the fiscal year ended June 30, 2002, excluding acquisition-related amortization and stock compensation expense, was $4.7 million compared with a pro forma net loss of $6.7 million for the fiscal year ended June 30, 2001. On a diluted basis, pro forma net loss per share excluding such charges was $0.32 in the fiscal year ended June 30, 2002 compared with a pro forma net loss per share of $0.53 in the fiscal year ended June 30, 2001. During the fiscal year ended June 30, 2002, operating expenses included acquisition-related charges of $34.0 million, which represented amortization of intangible assets of $33.6 million and amortization of stock compensation charges of $411,000 associated with stock options assumed in the acquisitions. Including these acquisition-related charges, the net loss for the fiscal year was $38.8 million, or a net loss per share of $2.63, compared with a net loss of $40.0 million, or a net loss per share of $3.12 in the fiscal year ended June 30, 2001. The company ended the year with cash and cash equivalents of $25.9 million, up from $13.2 million at the end of the prior fiscal year. Working capital was $20.7 million at June 30, 2002 compared to $13.6 million at June 30, 2001. The increase in cash and working capital is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to an equity investment made by General Atlantic Partners, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control and positive cash flow generated from operations during the fiscal year. "During the year, we have significantly improved our financial position. Additionally, the selection of our offerings by major global organizations has confirmed our technology leadership," said Dan McGurl, chairman 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. "During the fourth quarter, we successfully completed the acquisition of legal e-billing (Electronic-billing) Paying bills by mail. See EBPP. technology from eVelocity and announced a global alliance with PwC Consulting. We are excited about the growth opportunities each of these events represents as we enter the new fiscal year." Customer Highlights -- Bottomline's transaction-based business achieved the one million monthly transactions milestone. -- Acquired the technology of eVelocity, a legal e-billing hosting platform that automates legal e-billing for corporations and their legal counsel. With the addition of the eVelocity global network, Bottomline is positioned to provide hosted financial resource management services to new and existing enterprise and financial institution customers. -- Formed a global alliance with PwC Consulting(TM), a business of PricewaterhouseCoopers, to market and implement Bottomline's financial resource management products to joint clients. -- The Board of Directors authorized the repurchase of up to $3 million of the Company's common stock, a new program that replaces the stock repurchase program announced on February 25, 2002. -- Introduced Vendor Self Help, a new module for the WebSeries platform that provides organizations with electronic workflow to automate incoming invoice routing and approval processes and provides invoice and payment status information via the Web. Corporate and Product Highlights: -- Bottomline's transaction-based business achieved the one million monthly transactions milestone. -- Acquired the technology of eVelocity, a legal e-billing hosting platform that automates legal e-billing for corporations and their legal counsel. With the addition of the eVelocity global network, Bottomline is positioned to provide hosted financial resource management services to new and existing enterprise and financial institution customers. -- Formed a global alliance with PwC Consulting(TM), a business of PricewaterhouseCoopers, to market and implement Bottomline's financial resource management products to joint clients. -- The Board of Directors authorized the repurchase of up to $3 million of the Company's common stock, a new program that replaces the stock repurchase program announced on February 25, 2002. -- Introduced Vendor Self Help, a new module for the WebSeries platform that provides organizations with electronic workflow to automate incoming invoice routing and approval processes and provides invoice and payment status information via the Web. A reconciliation of GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). earnings to pro forma earnings pro forma earnings Income not necessarily calculated in accordance with generally accepted accounting principles. For example, a company might report pro forma earnings that exclude depreciation expense and nonrecurring expenses such as restructuring costs. for the fourth quarter and fiscal year is as follows:
Three Months Ended Year Ended
June 30, June 30,
2002 2001 2002 2001
GAAP Pre-tax Earnings $ (10,487) $ (11,256) $ (38,729) $ (39,285)
Amortization of Intangible
Assets 8,618 9,738 33,634 30,501
Stock Compensation Expense 104 93 411 349
Income Tax (Provision)
Benefit 143 285 (60) 1,687
Pro forma Earnings $ (1,622) $ (1,140) $ (4,744) $ (6,748)
Bottomline will host a conference call to discuss its financial results beginning at 8:00 am on August 23, 2002. Please see the corresponding advisory issued August 8, 2002, 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 (Nasdaq: EPAY) is a leading global technology provider of Financial Resource Management (FRM) software and services. Bottomline's comprehensive suite 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 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. 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 England, the largest and most populous portion of the United Kingdom of Great Britain and Northern Ireland (1991 pop. 46,382,050), 50,334 sq mi (130,365 sq km). It is bounded by Wales and the Irish Sea on the west and Scotland on the north. . 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 expected benefits of use of the Company's products and future growth or results. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. More information about potential factors that could affect the company's business and financial results is included in the Company's 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. 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 is on file with the Securities and Exchange Commission (http://www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. ). The accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. 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,
2002 2001
Revenues:
Software licenses $ 3,525 $ 4,870
Service and maintenance 9,441 9,591
Equipment and supplies 4,502 5,342
Total revenues 17,468 19,803
Cost of revenues:
Software licenses 517 567
Service and maintenance 4,525 4,682
Equipment and supplies 3,360 4,011
Total cost of revenues 8,402 9,260
Gross profit 9,066 10,543
Operating expenses:
Sales and Marketing:
Sales and marketing 5,288 5,406
Product development and engineering:
Product development and engineering 3,408 2,873
Stock compensation expense 104 93
General and administrative:
General and administrative 2,406 3,405
Amortization of intangible assets 8,618 9,738
Total operating expenses 19,824 21,515
Loss from operations (10,758) (10,972)
Other income (expense), net 271 (284)
Loss before benefit for income taxes (10,487) (11,256)
Benefit for income taxes (143) (661)
Net loss $ (10,344) $(10,595)
Net loss per share:
Basic and diluted $ (0.66) $ (0.78)
Shares used in computing net loss per share:
Basic and diluted 15,665 13,572
Pro forma (excluding acquisition-
related charges):(1)
Net loss $ (1,622) $ (1,140)
Diluted net loss per share $ (0.10) $ (0.08)
(1) Pro forma presentation excludes amortization of intangible assets
and amortization of stock compensation expense, net of tax.
Bottomline Technologies
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
Twelve Months Ended
June 30,
2002 2001
Revenues:
Software licenses $ 16,023 $ 23,619
Service and maintenance 38,169 34,181
Equipment and supplies 19,794 19,910
Total revenues 73,986 77,710
Cost of revenues:
Software licenses 1,455 2,279
Service and maintenance 18,506 18,072
Equipment and supplies 14,457 14,506
Total cost of revenues 34,418 34,857
Gross profit 39,568 42,853
Operating expenses:
Sales and Marketing:
Sales and marketing 19,504 23,710
Product development and engineering:
Product development and engineering 13,795 13,437
Stock compensation expense 411 349
General and administrative:
General and administrative 11,016 13,407
Amortization of intangible assets 33,634 30,501
Total operating expenses 78,360 81,404
Loss from operations (38,792) (38,551)
Other income (expense), net 63 (734)
Loss before provision for income taxes (38,729) (39,285)
Provision for income taxes 60 714
Net loss $(38,789) $(39,999)
Net loss per share:
Basic and diluted $ (2.63) $ (3.12)
Shares used in computing net loss per share:
Basic and diluted 14,725 12,827
Pro forma (excluding acquisition-
related charges):(1)
Net loss $ (4,744) $ (6,748)
Diluted net loss per share $ (0.32) $ (0.53)
(1) Pro forma presentation 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,
2002 2001
Assets
Current assets:
Cash and cash equivalents $ 25,931 $ 13,247
Accounts receivable 15,242 18,871
Other current assets 3,960 4,930
Total current assets 45,133 37,048
Property and equipment 6,955 6,316
Goodwill and other intangible assets 43,540 71,766
Other assets 1,689 1,319
Total assets $ 97,317 $ 116,449
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 5,154 $ 6,408
Accrued expenses 5,574 5,579
Deferred revenue and deposits 13,452 11,498
Current portion of long-term debt 253 -
Total current liabilities 24,433 23,485
Long-term debt 253 -
Total liabilities 24,686 23,485
Stockholders' equity
Common stock 16 14
Additional paid-in-capital 164,022 144,709
Deferred compensation (474) (902)
Accumulated other comprehensive income
(loss) 182 (3,069)
Treasury stock (4,538) -
Retained deficit (86,577) (47,788)
Total stockholders' equity 72,631 92,964
Total liabilities and stockholders' equity $ 97,317 $ 116,449
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