Bottomline Technologies Reports Second Quarter Results; Revenue Growth and Operating Performance Highlight Quarter.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)--Jan. 28, 2004 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 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 second quarter ended December December: see month. 31, 2003. Revenues for the second quarter were $21.3 million compared with $17.7 million in the second quarter of last year and $16.9 million in the first quarter of this year, an increase of 20% year over year and 26% sequentially. The increase in revenue is attributable to the revenue contribution from the Create!form acquisition, higher sales of the company's other software products and services and foreign exchange rates. The net loss for the second quarter was $449,000, or a net loss per share of $0.03, compared with a net loss of $4.2 million and a net loss per share of $0.27 in the second quarter of last year. During the second 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. of $12.3 million included net acquisition-related charges of $900,000, 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 approximately $891,000 and a stock compensation expense of $9,000 associated with stock options assumed in a prior acquisition. 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 second quarter was $451,000, or pro forma net income per share of $0.03, compared with a pro forma net loss per share of $0.12 in the second quarter of last year. "Positive results were recorded in the quarter across all key metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. while 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. increased by over $7.5 million sequentially," 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. "Higher software revenues drove increased gross margins which resulted in improved operating results. We see the opportunity for continued growth in our market." Revenues for the six months ended December 31, 2003 were $38.1 million compared with $34.0 million in the same period of last year. The net loss for the six months ended December 31, 2003 was $2.6 million, or a net loss per share of $0.16, compared with a net loss of $23.8 million and a net loss per share of $1.53 in the six months ended December 31, 2002. The results for the six months ended December 31, 2002 included the cumulative effect of an accounting change in the amount of $13.8 million, which 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 this accounting change was $10.1 million, or a net loss per share of $0.65. During the six months ended December 31, 2003, operating expenses of $23.6 million included net acquisition-related charges of $3.3 million, which represented a charge for in-process research and development of $789,000 associated with the acquisition of Create!form International, Inc., amortization of intangible assets of approximately $2.5 million and a stock compensation expense of $22,000 associated with stock options assumed in a prior acquisition. Excluding these acquisition-related items, pro forma net income for the six months ended December 31, 2003 was $719,000, or pro forma net income per share of $0.04, compared with a pro forma net loss per share of $0.36 in the same period of last year. 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 such information excludes certain non-cash items and management believes it is a more accurate measurement of Bottomline's overall operating performance. Management believes that presenting financial measures exclusive of certain non-cash items helps identify trends in the company's business and the company uses these measures to establish budgets and operational goals, to manage its business and to evaluate the performance of the company. The presentation of this information should not be considered in isolation or as a substitute for results prepared 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. A reconciliation of the GAAP net loss to the pro forma results for the periods ending December 31 is as follows:
Three Months Ended Six Months Ended
December 31, December 31,
------------------ ------------------
(in thousands)
2003 2002 2003 2002
--------- -------- -------- ---------
GAAP Net Loss $(449) $(4,205) $(2,594) $(23,831)
Cumulative Effect of Accounting
Change - - - 13,764
In-process Research and
Development - - 789 -
Amortization of Intangible Assets 891 2,243 2,502 4,425
Stock Compensation Expense 9 26 22 63
--------- -------- -------- ---------
Pro forma Net Income (Loss) $451 $(1,936) $719 $(5,579)
========= ======== ======== =========
Customer Highlights: -- Leading companies such as Heinz, Metropolitan Life, Sungard (SunGard Data Systems Inc., Wayne, PA, www.sungard.com) A computer software and services company specializing in financial services, investment support systems and business continuity. SunGard was formed in 1983 from four subsidiaries of the Philadelphia-based Sun Company. Securities, Prudential Prudential is the name of two different companies and buildings named after them: Companies:
Bottomline to deliver financial resource management solutions. -- Western Asset Management, a subsidiary of Legg Mason Founded in 1899, Legg Mason, Inc. (NYSE: LM) is a leading Global Asset Management Firm that serves the institutional, mutual fund and wealth management markets. The firm is headquartered in Baltimore, Maryland, and is located on Lombard and Charles Streets in the Legg Mason , selected Bottomline's WebSeries software for their shared service center to facilitate global electronic payments. -- Bottomline's new Legal eXchange platform was well received with several new customer contracts during the quarter. -- Bottomline added several new customers for output management solutions including Worldwide Wresting Entertainment (WWE WWE World Wrestling Entertainment, Inc. (formerly World Wrestling Federation) WWE Witwe (German: Widow) WWE William Webb Ellis (inventor of rugby) WWE World Wide Education WWE Well Woman Exam ), Metaldyne, Michael Kors  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . , and the University of Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. . -- Bottomline's customer, RBC RBC red blood cell. RBC or rbc abbr. red blood cell RBC, n See red blood cell count. RBC red blood cells; red blood (cell) count (see blood count). Global Services, a division of Royal Bank of Canada Bank of Canada Canada's central bank, established under the Bank of Canada Act (1934). It was founded during the Great Depression to regulate credit and currency. The Bank acts as the Canadian government's fiscal agent and has the sole right to issue paper money. , captured two prestigious industry awards for its Viewfinder The preview window on a camera that is used to frame, focus and take the picture. On analog cameras, the viewfinder is an eye-sized window that must be pressed against the face. Point-and-shoot digital cameras use small LCD screens that are viewed several inches from the eyes. (R) web portal See portal. built using Bottomline's WebSeries eBanking platform. -- Bottomline signed several new distributors, expanding the distribution channel for the company's products in France, the Netherlands Netherlands (nĕth`ərləndz), Du. Nederland or Koninkrijk der Nederlanden, officially Kingdom of the Netherlands, constitutional monarchy (2005 est. pop. 16,407,000), 15,963 sq mi (41,344 sq km), NW Europe. , Italy Italy (ĭt`əlē), Ital. Italia, officially Italian Republic, republic (2005 est. pop. 58,103,000), 116,303 sq mi (301,225 sq km), S Europe. , Asia, and the Americas A·mer·i·cas , the See America. . Corporate and Product Highlights: -- Announced the availability of the latest version of our payments software solution, PayBase 7.0. In addition to US check and NACHA-compliant electronic payment types, the system now supports over 35 foreign draft types as well as BACSTEL-IP. -- Released Create!form(R) Version 3.0 for use with PeopleSoft (PeopleSoft, Inc., Pleasanton, CA, www.peoplesoft.com) A software company that specialized in enterprise-wide applications for client/server environments. Initially specializing in human resources, its package offerings covered the gamut including financial, distribution, manufacturing EnterpriseOne. Certified See certification. by PeopleSoft, the release includes many significant new features and enhancements, and is an important addition to the company's complementary output management products for PeopleSoft EnterpriseOne users. Bottomline will host a conference call to discuss its financial results beginning at 5:00 p.m. today. Please see the corresponding advisory issued January January: see month. 20, 2004 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 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 future revenue growth, market opportunities and expected financial performance. 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 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 unaudited 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. The forward-looking statements contained herein represent the judgment of Bottomline as of the date of this announcement. We disclaim dis·claim v. dis·claimed, dis·claim·ing, dis·claims v.tr. 1. To deny or renounce any claim to or connection with; disown. 2. To deny the validity of; repudiate. 3. any obligation to update any forward-looking statement.
Bottomline Technologies
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
Three Months Ended
December 31,
2003 2002
----------- ---------
Revenues:
Software licenses $4,513 $3,359
Service and maintenance 12,492 9,969
Equipment and supplies 4,249 4,396
----------- ---------
Total revenues 21,254 17,724
Cost of revenues:
Software licenses 584 449
Service and maintenance 5,400 5,627
Equipment and supplies 3,446 3,329
----------- ---------
Total cost of revenues 9,430 9,405
----------- ---------
Gross profit 11,824 8,319
Operating expenses:
Sales and marketing 5,792 4,704
Product development and engineering:
Product development and engineering 2,659 2,739
Stock compensation expense 9 26
General and administrative 2,932 2,908
Amortization of intangible assets 891 2,243
----------- ---------
Total operating expenses 12,283 12,620
----------- ---------
Loss from operations (459) (4,301)
Other income, net 42 111
----------- ---------
Loss before provision for income taxes (417) (4,190)
Provision for income taxes 32 15
----------- ---------
Net loss $(449) $(4,205)
Basic and diluted net loss per share $(0.03) $(0.27)
----------- ---------
Shares used in computing basic and diluted
net loss per share: 16,621 15,567
----------- ---------
Pro forma (excluding acquisition-related charges):(1)
Net income (loss) $451 $(1,936)
----------- ---------
Basic and diluted net income (loss) per
share (2) $0.03 $(0.12)
----------- ---------
(1) Pro forma presentation excludes amortization of intangible assets
of $891 and $2,243 and amortization of stock compensation expense
of $9 and $26, net of tax for the three months ended December 31,
2003 and 2002, respectively.
(2) Shares used in computing pro forma diluted net income per share
were 17,373 and 15,567 for the three months ended December 31,
2003 and 2002, respectively.
Bottomline Technologies
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
Six Months Ended
December 31,
2003 2002
----------- -----------
Revenues:
Software licenses $7,142 $6,099
Service and maintenance 22,939 19,255
Equipment and supplies 8,044 8,650
----------- -----------
Total revenues 38,125 34,004
Cost of revenues:
Software licenses 854 854
Service and maintenance 9,848 10,654
Equipment and supplies 6,465 6,492
----------- -----------
Total cost of revenues 17,167 18,000
----------- -----------
Gross profit 20,958 16,004
Operating expenses:
Sales and marketing 10,011 10,013
Product development and engineering:
Product development and engineering 4,972 5,979
In-process research and development 789 -
Stock compensation expense 22 63
General and administrative 5,306 5,844
Amortization of intangible assets 2,502 4,425
----------- -----------
Total operating expenses 23,602 26,324
----------- -----------
Loss from operations (2,644) (10,320)
Other income, net 97 283
----------- -----------
Loss before provision for income taxes and
cumulative effect of accounting change (2,547) (10,037)
Provision for income taxes 47 30
----------- -----------
Net loss before cumulative effect of
accounting change (2,594) (10,067)
Cumulative effect of accounting change - (13,764)
----------- -----------
Net loss $(2,594) $(23,831)
Basic and diluted:
Loss per share before cumulative effect
of accounting change $(0.16) $(0.65)
Cumulative effect of accounting change - (0.88)
----------- -----------
Net loss per share $(0.16) $(1.53)
----------- -----------
Shares used in computing basic and diluted
net loss per share: 16,333 15,556
----------- -----------
Pro forma (excluding acquisition-related charges):(1)
Net income (loss) $719 $(5,579)
----------- -----------
Basic and diluted net income (loss)
per share(2) $0.04 $(0.36)
----------- -----------
(1) Pro forma presentation is before the cumulative effect of
accounting change and excludes in-process research and development
of $789 and $0, amortization of intangible assets of $2,502 and
$4,425 and amortization of stock compensation expense of $22 and
$63, net of tax for the six months ended December 31, 2003 and
2002, respectively.
(2) Shares used in computing pro forma diluted net income per share
were 17,019 and 15,556 for the six months ended December 31, 2003
and 2002, respectively.
Bottomline Technologies
Unaudited Condensed Consolidated Balance Sheets
(in thousands)
December 31, June 30,
2003 2003
--------------- --------------
Assets
Current assets:
Cash and cash equivalents $23,036 $25,802
Accounts receivable 16,300 13,281
Other current assets 4,253 4,148
--------------- --------------
Total current assets 43,589 43,231
Property and equipment 6,591 6,447
Intangible assets 30,555 22,660
Other assets 920 1,024
--------------- --------------
Total assets $81,655 $73,362
=============== ==============
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $5,916 $5,712
Accrued expenses 7,067 6,005
Deferred revenue and deposits 16,780 13,697
Current portion of long-term debt 253 253
--------------- --------------
Total current liabilities 30,016 25,667
Long-term debt - -
--------------- --------------
Total liabilities 30,016 25,667
Stockholders' equity
Common stock 17 17
Additional paid-in-capital 169,969 164,809
Deferred compensation (33) (78)
Accumulated other comprehensive
income 2,821 1,628
Treasury stock (4,110) (4,250)
Retained deficit (117,025) (114,431)
--------------- --------------
Total stockholders' equity 51,639 47,695
--------------- --------------
Total liabilities and stockholders'
equity $81,655 $73,362
=============== ==============
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion