Bottomline Technologies Reports Third Quarter Results.Record Revenues, Orders and Backlog Highlight Quarter PORTSMOUTH, 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 collaborative payment and invoice automation solutions, today reported financial results for the third quarter ended March 31, 2007. Revenues for the third quarter were $31.1 million, a 25% increase from revenues of $24.9 million in the third quarter of last year. The growth in revenues includes a 16% increase in subscription and transaction revenues to $6.8 million for the third quarter of fiscal 2007 as compared to $5.8 million for the same period last year, and a 60% increase in software licenses In computing, software that is copyrighted and licensed under a software license is done under a variety of licensing schemes. For end-users there are proprietary licenses and there are free software licenses, and there are proprietary Within these schemes are further classifications. to $4.1 million in the current quarter from $2.5 million in the third quarter last year. Recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. revenues, consisting of subscription and transaction, maintenance and supplies revenue was $19.0 million as compared with $16.1 million in the third quarter of last year. New Annual Recurring Revenue (ARR ARR See: Average rate of return ) was $4.1 million as compared with $3.4 million and $2.3 million in the prior two quarters. New ARR represents the expected one-year revenue value from new subscription and transaction sales during the quarter as well as the one-year maintenance value on new software license sales. Net loss for the third quarter was $1.9 million, or net loss per share of $0.08. During the third 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 $20.2 million included acquisition-related 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 $2.7 million and stock-based compensation expense of $2.0 million. Excluding these acquisition-related and stock compensation items, non-GAAP net income for the third quarter was $2.8 million, equating to non-GAAP net income per share of $0.12. "Bottomline had a strong third quarter," said Rob Eberle, 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. "Record revenue and record orders were achieved through execution throughout the business. The results were driven by broad-based demand for our payment, invoice, banking and cash management and document solutions. Response to our new recurring revenue offerings drove a new high for ARR. With the combination of our recurring revenues, new ARR, backlog and continued strong demand for our software and recurring revenue offerings, we believe our business is well positioned to drive future growth as we go forward." Revenues for the nine months ended March 31, 2007 were $86.0 million as compared with $75.7 million in the same period last year. Net loss for the nine months ended March 31, 2007 was $5.5 million, or net loss per share of $0.23. During the nine months ended March 31, 2007, the company incurred acquisition-related amortization of intangible assets of approximately $6.6 million and stock compensation expense of $5.9 million. Excluding these items, non-GAAP net income for the nine months ended March 31, 2007 was $7.0 million, or non-GAAP net income per share of $0.29. Customer Highlights: * Large worldwide organizations, including Universal Music Group, MTV Networks MTV Networks is a division of media conglomerate Viacom that oversees the operation of many TV network and Internet brands, including the first MTV channel. The company was established in 1984 after Warner Communications and American Express decided to divest the basic cable , Select Hotels Group and Gartmore, an international asset management firm, signed agreements for Bottomline's accounts payable automation solution. * Further expanded the adoption of Legal eXchange[TM] within the insurance sector, signing multi-year legal spend management contracts with two property and casualty insurance leaders, Infinity Property & Casualty Company and Crum & Forster. * Bottomline's WebSeries[R] banking platform was selected by a leading Asia-Pacific financial institution. * New customers such as Alpharma, HarperCollins Publishers, Muehlstein & Co., Northcliffe Media Ltd, Red Hat, Ryan Companies and Virtua Health System chose Bottomline's payments and document process automation platforms. * Organizations such as Charter Indemnity, Hertz hertz (hûrts) [for Heinrich R. Hertz], abbr. Hz, unit of frequency, equal to 1 cycle per second. The term is combined with metric prefixes to denote multiple units such as the kilohertz (1,000 Hz), megahertz (1,000,000 Hz), and gigahertz , John Muir Health John Muir Health is a health care service located in Contra Costa County, California. It was created in 1997 from the merger of John Muir Medical Center and Mt. Diablo Medical Center John Muir Medical Center, Walnut Creek Campus and Vodafone expanded existing deployments of Bottomline's payments, invoice and document automation platforms. Corporate and Product Highlights: * Introduced Legal eXchange 7.0, featuring enhanced reporting capabilities and the ability to provide a complete view of legal spend through value-added services A value-added service (VAS) is a telecommunications industry term for non-core services or, in short, all services beyond standard voice calls and fax transmissions. for converting any type of paper-based invoice into electronic data. * Formed a strategic partnership with Infosys BPO BPO Business Process Outsourcing BPO Benevolent & Protective Order (of Elks of the USA) BPO Benzoyl Peroxide BPO Business Process Optimization BPO Broker Price Opinions BPO Buffalo Philharmonic Orchestra , the business process outsourcing Business process outsourcing (BPO) is the contracting of a specific business task, such as payroll, to a third-party service provider. Usually, BPO is implemented as a cost-saving measure for tasks that a company requires but does not depend upon to maintain its position in (BPO) subsidiary of Infosys Technologies, to integrate Bottomline's capabilities for invoice automation into the firm's outsourced services offering for global corporate clients. * Expanded its long-term relationship for payments and invoice initiatives with HSBC HSBC Hongkong and Shanghai Banking Corporation HSBC Humane Society of Broward County (Florida) HSBC Humane Society of Bay County (Bay County, Michigan) , adding France to a growing list of European markets where the bank will offer its Bottomline-powered Accounts Payable Integration service. HSBC first introduced the solution to corporate customers in the US and UK in 2006. * Hosted its annual Executive Forum & Customer Summit, bringing together senior-level executives from some of the world's leading banks and financial institutions to discuss innovation in corporate cash management and straight-through payments processing. 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 and stock compensation expense. The presentation of this information should not be considered in isolation to, or as a substitute for, the financial results presented in accordance 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 they allow 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 basis, including the lack of comparability of this presentation to the GAAP financial results of other companies. A reconciliation of the GAAP results to the non-GAAP results for the three and nine month periods ending March 31 is as follows: [TABLE OMITTED] About Bottomline Technologies Bottomline Technologies (NASDAQ: EPAY) provides collaborative payment and invoice automation solutions to corporations, financial institutions and banks around the world. The company's solutions are used to streamline, automate and manage processes and transactions involving global payments, invoice approval, purchase-to-pay, collections, cash management and document process automation. Organizations trust these solutions to meet their needs for cost reduction, competitive differentiation and optimization of working capital. Headquartered in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Bottomline also maintains offices in Europe and Asia-Pacific. For more information, visit www.bottomline.com. Bottomline Technologies, WebSeries, Legal eXchange and the BT logo 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 may contain "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. For additional discussion of factors that could impact Bottomline Technologies' financial results, refer to the Company's Quarterly Report or Form 10-Q Form 10-Q See 10-Q. for the quarter ended December 31, 2006, on file with the SEC. 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. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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