Bottomline Technologies Reports Fourth Quarter and Fiscal Year Results; Increase in Revenues and Profit Highlights Quarter.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. -- Bottomline Technologies (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : EPAY), a leading provider of payments and 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. automation software and services, today reported financial results for the fourth quarter and fiscal year ended June June: see month. 30, 2005. Revenues for the fourth quarter were $26.3 million compared with $22.4 million in the fourth quarter of last year. Net income for the fourth quarter was $2.2 million, or net income per share of $0.11, compared with a net income of $417,000 and a net income per share of $0.02 in the fourth quarter of last year, representing a $1.8 million increase in net income. During the fourth quarter of 2005, 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. were $13.1 million compared to $12.1 million for the same period the prior year. Included in operating expenses for the quarters ended June 30, 2005 and 2004 were acquisition-related expenses of $869,000 and $972,000 respectively. Excluding the acquisition-related expenses, non-GAAP net income for the fourth quarter was $3.1 million, or non-GAAP net income per share of $0.16, compared with non-GAAP net income of $1.4 million, or non-GAAP net income per share of $0.08 in the fourth quarter of last year. The fourth quarter non-GAAP operating results represent an increase of $1.7 million. "The solid performance in our fourth quarter underscores the results we achieved for the entire year, highlighted by full year revenue growth of 17% and a three times improvement in earnings," 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. , 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. "In addition to good current results, the business improved its future outlook with an increased backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. from strong customer order activity and a successful secondary stock offering. Bottomline enters the first quarter of the current fiscal year from a position of both opportunity and strength." Revenues for the year ended June 30, 2005 were $96.5 million compared with $82.1 million last year. Net income for the year ended June 30, 2005 was $5.9 million, or net income per share of $0.31, compared with a net loss of $2.4 million and a net loss per share of $0.15 last year, representing a $8.3 million improvement in net income. During the year ended June 30, 2005, operating expenses of $49.8 million included net acquisition-related charges of $3.2 million. Excluding these acquisition-related items, non-GAAP net income for the year ended June 30, 2005 was $9.1 million, or non-GAAP net income per share of $0.48, compared with non-GAAP net income of $2.7 million, or non-GAAP net income per share of $0.16 in the same period of last year. This year's non-GAAP operating results represent a $6.4 million increase from the prior year. Bottomline has presented supplemental non-GAAP financial measures as part of this earnings release. The non-GAAP financial measures exclude certain non-cash items, specifically 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. , stock compensation expense and in-process research and development charges. The presentation of this information should not be considered in isolation to, or as a substitute for, the financial results presented in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). . Bottomline believes that these supplemental non-GAAP financial measures are useful to investors because it allows for an evaluation of the company with a focus on the performance of its core operations. Bottomline's executive management team uses these same non-GAAP measures internally to assess the ongoing performance of the company. Since this information is not a GAAP measurement of financial performance there are material limitations to its usefulness on a stand-alone (jargon) stand-alone - Capable of operating without other programs, libraries, computers, hardware, networks, etc. Exactly what is absent is presumed to be obvious from context. "We only run Windows on stand-alone PCs because it's too dangerous to run it on networked ones." basis, including the lack of comparability of this presentation to the GAAP financial results of other companies. A reconciliation of the GAAP net income (loss) to the non-GAAP results for the periods ending June 30 is as follows:
Three months ended Years Ended
June 30, June 30,
2005 2004 2005 2004
(in thousands)
GAAP Net Income (Loss) $2,204 $417 $5,888 $(2,418)
In-process Research and
Development - 53 - 842
Amortization of Intangible Assets 869 910 3,217 4,277
Stock Compensation Expense - 9 14 41
---------- ------- ------- ---------
Non-GAAP Net Income $3,073 $1,389 $9,119 $2,742
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Customer Highlights: --Major North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. organizations such as 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 Capital, Feld Feld is a surname and may refer to:
Family of U.S. circus owners. After five of the seven brothers formed a song-and-dance troupe (1882), they began to add circus acts to their show. In 1884 they organized their first small circus in their hometown, Baraboo, Wis. and Barnum & Bailey Bailey may refer to:
In the United Kingdom:
n.pr a nonprofit national organization of individuals, institutions, and organizations engaged in direct patient care. The association works to promote the improvement of health care services. , Hard Rock Casino casino or cassino (both: kəsē`nō). 1 Card game played with a full deck by two to four players. Its origins are obscure though it probably traces back to the Italian game of Scopa. and Nautilus nautilus, in zoology nautilus, cephalopod mollusk belonging to the sole surviving genus (Nautilus) of a subclass that flourished 200 million years ago, known as the nautiloids. selected Bottomline's platforms to automate To turn a set of manual steps into an operation that goes by itself. See automation. and enhance financial processes. --Bottomline's payments solutions continued to gain broad adoption across the banking industry, adding UMB (1) (Upper Memory Block) See UMA. (2) (Ultra Mobile Broadband) See 3GPP. 1. UMB - Upper Memory Block. 2. UMB - A university(?). Bank (United Missouri Missouri, state, United States Missouri (mĭz  r`ē, –ə), one of the midwestern states of the United States. Bank) and Colonial Bank Colonial Bank, a subsidiary of Colonial Bancgroup Inc. NYSE: CNB, is headquartered in Montgomery, Alabama. Colonial Bank has 300 branches in the states of Alabama, Georgia, Florida, Nevada and Texas. Its common stock is traded on the NYSE under the symbol CNB. to its growing list of global customers during
the quarter, and expanding the relationship with Fifth Third Bank.--Received 191 new orders during the quarter for Bottomline's BACSTEL-IP software solutions from leading UK-based organizations such as Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. , 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. , Co-Op Group Insurance and Accenture (Accenture, Chicago, IL, www.accenture.com) The world's largest management and technology consulting firm, which was spun off of Arthur Andersen & Co. in 1989 as a separate entity known as Andersen Consulting. HR. --Signed a major utility company and a regional insurance carrier during the quarter to Legal eXchange(R), Bottomline's Web-based legal spend management solution. Company and Product Highlights: --Completed a secondary offering of common stock in July July: see month. 2005, resulting in the sale of 3,560,000 new shares of its common stock generating proceeds of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $47 million. Including the offering proceeds, Bottomline's cash and investment position at June 30th would have been approximately $83 million. --Acquired HMSL HMSL - Hierarchical Music Specification Language Group Ltd, a UK-based accounts payable automation services firm, in April 2005. HMSL's customers include Gillette, 3M, Nestle, Arla Foods Arla Foods is a cooperative based in Århus, Denmark and the largest producer of dairy products in Scandinavia. Arla was formed as the result of a merger between the Swedish dairy cooperative Arla and the Danish dairy company MD Foods on 17 April 2000. and Bank of Ireland This article is about the commercial banking company Bank of Ireland. For the central bank of the Republic of Ireland, see Central Bank of Ireland. The Bank of Ireland (Irish: Banc na hÉireann . --Signed a software license agreement with Oracle, enabling Bottomline to embed em·bed also im·bed v. em·bed·ded, em·bed·ding, em·beds v.tr. 1. To fix firmly in a surrounding mass: embed a post in concrete; fossils embedded in shale. Oracle(R) Database 10g in current versions of its payments automation products. Through this agreement, Bottomline will be able to take advantage of new opportunities created by the growing demand for Oracle 10g See Oracle database. Database and lower total cost of ownership for customers. Bottomline will host a conference call to discuss its financial results beginning at 5:00 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. today. Please see the corresponding advisory issued August 3, 2005 for information on the call. The call will also be broadcast live at www.bottomline.com and a replay will be available on the Web site following the call. About Bottomline Technologies Bottomline Technologies (NASDAQ: EPAY) provides payments and invoice automation software and services to organizations seeking more secure and efficient financial processes. The company remains at the forefront of delivering innovative solutions that complement and extend the value of existing financial processes, business relationships and back-office systems. These solutions have enabled the world's leading corporations, banks and financial institutions to automate, manage and control processes involving payments and collections, invoice approval, cash flow, risk mitigation MITIGATION. To make less rigorous or penal. 2. Crimes are frequently committed under circumstances which are not justifiable nor excusable, yet they show that the offender has been greatly tempted; as, for example, when a starving man steals bread to satisfy , reporting and document archive (1) A file that contains one or more compressed files. Most archive formats are also capable of storing folders in order to reconstruct the file/folder relationship when decompressed. See archive formats. . For more information, please visit www.bottomline.com. Bottomline Technologies, the BT logo and Legal eXchange are registered trademarks of Bottomline Technologies, Inc. which may be registered in certain jurisdictions. All other brand/product names are trademarks of their respective holders. Cautionary Language This press release 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. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors. Among the important factors that could cause actual results to differ materially from those indicated by such 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 and other risks described in our quarterly report on Form 10-Q Form 10-Q See 10-Q. for the quarter ended March 31, 2005. Any forward-looking statements represent our views only as of today and should not be relied upon as representing our views as of any subsequent date. We do not assume any obligation to update any forward-looking statements.
Bottomline Technologies
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
Three Months Ended
June 30,
2005 2004
---------- ---------
Revenues:
Software licenses $5,139 $3,626
Service and maintenance 17,509 14,623
Equipment and supplies 3,670 4,190
---------- ---------
Total revenues 26,318 22,439
Cost of revenues:
Software licenses 427 368
Service and maintenance 7,629 6,151
Equipment and supplies 3,009 3,440
---------- ---------
Total cost of revenues 11,065 9,959
---------- ---------
Gross profit 15,253 12,480
Operating expenses:
Sales and marketing 6,516 5,577
Product development and engineering:
Product development and engineering 2,248 2,301
Stock compensation expense - 9
In-process research and development - 53
General and administrative 3,451 3,219
Amortization of intangible assets 869 910
---------- ---------
Total operating expenses 13,084 12,069
---------- ---------
Income from operations 2,169 411
Other income, net 43 88
---------- ---------
Income before provision for income taxes 2,212 499
Provision for income taxes 8 82
---------- ---------
Net income $2,204 $417
Net income per share
Basic $0.12 $0.02
---------- ---------
Diluted $0.11 $0.02
---------- ---------
Shares used in computing net income per share:
Basic 18,488 17,003
Diluted 19,744 18,078
---------- ---------
Non-GAAP (excluding acquisition-related
charges):(1)
Net income $3,073 $1,389
---------- ---------
Diluted net income per share (2) $0.16 $0.08
---------- ---------
(1) Non-GAAP presentation excludes charges for amortization of
intangible assets of $869 and $910 and amortization of stock
compensation expense of $0 and $9 for the three months ended June
30, 2005 and 2004, respectively. The non-GAAP presentation also
excludes $53 of expense associated with acquired in-process
research and development for the three months ended June 30, 2004.
(2) Shares used in computing non-GAAP diluted net income per share
were 19,744 and 18,078 for the three months ended June 30, 2005
and 2004, respectively.
Bottomline Technologies
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
Years Ended
June 30,
2005 2004
-------- --------
Revenues:
Software licenses $18,789 $14,366
Service and maintenance 62,233 51,364
Equipment and supplies 15,483 16,402
-------- --------
Total revenues 96,505 82,132
Cost of revenues:
Software licenses 2,295 1,678
Service and maintenance 26,656 22,363
Equipment and supplies 11,980 13,312
-------- --------
Total cost of revenues 40,931 37,353
-------- --------
Gross profit 55,574 44,779
Operating expenses:
Sales and marketing 24,323 21,062
Product development and engineering:
Product development and engineering 9,419 9,264
Stock compensation expense 14 41
In-process research and development - 842
General and administrative 12,800 11,830
Amortization of intangible assets 3,217 4,277
-------- --------
Total operating expenses 49,773 47,316
-------- --------
Income (loss) from operations 5,801 (2,537)
Other income, net 444 288
-------- --------
Income (loss) before provision for income taxes 6,245 (2,249)
Provision for income taxes 357 169
-------- --------
Net income (loss) $5,888 (2,418)
Net income (loss) per share:
Basic $0.33 $(0.15)
Diluted $0.31 $(0.15)
-------- --------
Shares used in computing net income (loss) per share:
Basic 18,030 16,514
Diluted 19,119 16,514
-------- --------
Non-GAAP (excluding acquisition-related charges):(1)
Net income $9,119 $2,742
-------- --------
Diluted net income per share (2) $0.48 $0.16
-------- --------
(1) Non-GAAP presentation excludes charges for amortization of
intangible assets of $3,217 and $4,277 and amortization of stock
compensation expense of $14 and $41 for the year ended June 30,
2005 and 2004, respectively. The non-GAAP presentation also
excludes $842 of expense associated with acquired in-process
research and development for the year ended June 30, 2004.
(2) Shares used in computing non-GAAP diluted net income per share
were 19,119 and 17,353 for the year ended June 30, 2005 and 2004,
respectively.
Bottomline Technologies
Unaudited Condensed Consolidated Balance Sheets
(in thousands)
June 30, June 30,
2005 2004
--------- ---------
Assets
Current assets:
Cash, cash equivalents and short-term
investments $35,916 $25,015
Accounts receivable 22,956 19,706
Other current assets 4,893 4,533
--------- ---------
Total current assets 63,765 49,254
Property and equipment 6,940 6,468
Intangible assets 38,695 34,686
Other assets 1,041 835
--------- ---------
Total assets $110,441 $91,243
========= =========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $6,094 $6,503
Accrued expenses 9,381 7,901
Deferred revenue and deposits 20,738 16,859
--------- ---------
Total current liabilities 36,213 31,263
Deferred revenue and deposits, non-current 1,435 727
Total liabilities 37,648 31,990
Stockholders' equity
Common stock 19 18
Additional paid-in-capital 182,534 177,205
Deferred compensation - (14)
Accumulated other comprehensive income 2,350 3,026
Treasury stock (1,149) (4,133)
Retained deficit (110,961) (116,849)
--------- ---------
Total stockholders' equity 72,793 59,253
--------- ---------
Total liabilities and stockholders' equity $110,441 $91,243
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