CheckFree Closes Fiscal 2001 With Record Performance.Business Editors ATLANTA--(BUSINESS WIRE)--Aug. 14, 2001 CheckFree(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 :CKFR CKFR Checkfree Corporation (stock abbreviation, AMEX) ): -- Highlights include over 5.2 million subscribers and 231 million transactions processed; -- 64 percent of transactions processed electronically in June; -- 271 bills committed to electronic distribution, with 173 available today; -- and nearly 500,000 e-bills distributed in June, for a run rate of 6 million bills per year CheckFree Corporation (NASDAQ: CKFR) today announced revenues of $121.8 million for the fourth quarter ended June 30, 2001 compared to $88.5 million for the same quarter of fiscal 2000. Total revenues for the quarter increased 38 percent over the comparative quarter of last year. Revenues for the year ended June 30, 2001 were $433.3 million, representing 40 percent growth over the prior year. CheckFree reported a 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 loss for the quarter of $0.8 million, or 1 cent per share, excluding the impact of acquisition-related amortization and one-time charges. This compares to a pro forma loss of $3.3 million, or 6 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , for the fourth quarter of fiscal 2000. For the fiscal year 2001, the Company reported a pro forma loss of $14.8 million, or 18 cents per share, compared to a pro forma loss of $10.3 million, or 19 cents per share, for fiscal 2000. On a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis, the company reported a net loss of $87.7 million, or $1.01 per share for the fourth quarter and a net loss of $363.1 million, or $4.49 per share for the fiscal year 2001, reflecting the impact of acquisition-related intangible amortization and one-time charges. CheckFree 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. Pete Kight said, "The significant gains we made across each of our divisions this fiscal year should enable us to meaningfully extend our leadership in each market we serve, as well as to deliver more of our top-line growth to the bottom line in fiscal 2002. The most critical strategic objective we achieved this year was the successful integration of assets, people and technology from our acquisitions, which included BlueGill bluegill: see sunfish. bluegill Popular game fish (Lepomis macrochirus) and one of the best-known sunfishes throughout its original range, the freshwater habitats of the central and southern U.S. It has been introduced throughout the western U.S. Technologies and TransPoint, and from our strategic alliance with 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. . Each of these relationships has enabled our Electronic Commerce division and the i-Solutions unit of our Software division to advance its leadership as tracked by any number of 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. , including subscriber growth, biller bill·er n. One that bills, as: a. A clerk who prepares bills. b. A machine used in preparing bills. relationships, bills distributed to consumers, transaction volumes and the percent of those transactions we can process electronically from end-to-end. These advancements, in turn, have helped us improve the quality, service, cost, and convenience we deliver to our customers and the consumers they serve. "We also are very pleased with the subscriber growth we saw for the quarter and the year," Kight continued. "Our subscriber base grew from 3.5 million at the end of fiscal 2000 to just over 5.2 million at the end of fiscal 2001, a 49 percent increase overall," Kight said. "CheckFree has a substantial lead in each of the primary markets we serve within all three of our operating divisions. We enter fiscal 2002 well equipped and strongly committed to defending and extending these leadership positions. We are equally committed to driving an increasing percentage of this growth to the bottom line." Electronic Billing Electronic billing is the electronic delivery and presentation of financial statements, bills, invoices, and related information sent by a company to its customers. Electronic billing is also referred to as the following:
Gains made across key operating metrics for the fourth quarter and the year include:
-- Sequential quarterly subscriber growth in the fourth quarter
was 9 percent, with a 49 percent gain in subscribers for the
year overall, including 300,000 subscribers added through
CheckFree's integration of Bank of America's electronic
billing and payment operations in October of 2000. Net of
these subscribers, growth for the year was 40 percent.
-- The company added 26 targeted billers to distribution
agreements in the quarter. This represents a gain of 84 new
e-bill agreements for fiscal 2001, above the Company's
targeted goal of 75. As of June 30, agreements are in place
for 271 different bills to be available through CheckFree's
distribution network, and 173 could be accessed, compared to
157 agreements and 93 accessible bills at the end of fiscal
2000. In addition, bills from 28 non-targeted billers are now
available through CheckFree distribution, for a total of 201
e-bills.
-- Additional biller content became available in the fourth
quarter through the broadened capability of the Genesis
platform to deliver bills "scraped" from biller-direct sites.
Credit card bills from American Express, Discover, Citibank,
MBNA, First USA, and Chase are now available through scraping
technology, adding six bills to the 201 available through
cooperative distribution agreements, for a total of 207
available e-bills.
-- CheckFree distributed nearly 500,000 bills in June 2001, up
from 90,000 bills distributed in June 2000 and up from about
350,000 bills distributed in March 2001. This equates to a run
rate of nearly six million bills distributed per year.
-- CheckFree processed more than 22 million transactions in June,
up from more than 16 million transactions in June of 2000. In
fiscal 2001, the Company processed 231 million transactions,
up from 169 million in fiscal 2000.
-- The Company achieved an electronic payment rate of 64 percent
in June 2001, up from 58 percent in June 2000. End-to-end
electronic processing positively impacts operating margins
through lower exception rates, customer inquiry rates, and
processing costs.
Divisions Continue Strong Execution CheckFree's Electronic Commerce division reported revenue of $84.3 million for the fourth quarter, representing 42 percent growth over the same quarter of fiscal 2000. The division posted a pro forma operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. of $374,000 dollars, compared with an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $4.8 million for the same quarter in fiscal 2000. For the year ended June 30, 2001, the Electronic Commerce division posted revenue of $301.5 million, a 41 percent gain over the $213.4 million in revenue posted in fiscal 2000, and a pro forma operating loss of $13.1 million compared with a pro forma operating loss of $18.2 million in fiscal 2000. CheckFree Investment Services reported revenue of $19.0 million for the fourth quarter, a 24 percent increase over the $15.3 million reported for the same period last year. Revenue for the year was $69.6 million, a 27 percent increase over the $54.8 million reported for fiscal 2000. For the fourth quarter the division posted a pro forma operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $7.1 million compared to pro forma operating income of $4.3 million in the fourth quarter of fiscal 2000. Pro forma operating income for the year was $20.3 million, compared with pro forma operating income of $15.8 million in fiscal 2000. The Company's Software division reported revenue of $18.4 million for the fourth quarter, a 31 percent increase over the $14.0 million reported for the same period last year. Revenue for the year was $62.2 million, a 48 percent increase over the $42.0 million in revenue reported for fiscal 2000. This division reported pro forma operating income of $0.8 million for both the quarter and the full fiscal year, compared with pro forma operating income of $2.0 million in the fourth quarter of 2000 and $10.5 million for the full year of fiscal 2000. These results reflect planned investments in integrating the former BlueGill Technologies into CheckFree i-Solutions, and investment associated with that unit's launch of three new product releases for business-to-consumer and business-to-business e-billing and e-statement software and services. Pete Sinisgalli, CheckFree president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , said, "We made important gains in each of our divisions this year, which collectively will advance and protect CheckFree's market advantage. Our E-Commerce division continued to extend its leadership across all metrics important in the electronic billing and payment market. Our Investment Services division continued to deliver consistent growth in both revenue and operating income, while increasing portfolios under management by 21 percent for the year, for a total of 1.15 million portfolios. That business also made important strategic gains in service areas that offer growth opportunity, such as services for the fee-based WRAP market and software that supports financial planning Financial planning Evaluating the investing and financing options available to a firm. Planning includes attempting to make optimal decisions, projecting the consequences of these decisions for the firm in the form of a financial plan, and then comparing future performance against and investment management services offered by independent financial planners Financial Planner A qualified investment professional who assists individuals and corporations meet their long-term financial objectives by analyzing the client's status and setting a program to achieve these goals. , brokerage firms, banks and mutual fund and insurance companies. "Each of the three units in our Software division delivered strong performance against their operating plans for fiscal 2001," Sinisgalli continued. "Both CheckFree Financial and Compliance Solutions and CheckFree ACH (Automated Clearing House) A system of the U.S. Federal Reserve Bank that provides electronic funds transfer (EFT) between banks. It is used for all kinds of fund transfer transactions, including direct deposit of paychecks and monthly debits for routine payments to Solutions continued to deliver healthy margins while expanding business in both the traditional bank market sector as well as in the brokerage, insurance, and retail sectors, among others. "CheckFree i-Solutions, despite a challenging economic environment for companies selling Internet-related software, achieved its aggressive objective of more than doubling the revenue the former BlueGill Technologies achieved last year," Sinisgalli noted. "Software license sales in the fourth quarter were strong both domestically and internationally. In addition, last month we launched new software and service options for e-bills and e-statements, including a streamlined series of applications tailored for core vertical industries and the ability to contract with CheckFree to host and manage those applications," Sinisgalli concluded. Expectations for Fiscal Year 2002 "In fiscal 2002, we expect to post positive earnings per share on a pro forma basis, in the mid to high single digit range for the year. This compares with a pro forma loss per share for fiscal 2001 of 18 cents, for significant year over year improvement in earnings," said David Mangum, CheckFree's chief financial officer. "We anticipate being significantly EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become positive and cash flow break even to moderately positive for fiscal 2002. "Sequential quarterly subscriber growth for the first quarter should again be in the range of seven to nine percent, off our larger base of 5.2 million subscribers," he continued. "For the first quarter of 2002, we anticipate revenue in the range of $116 to $121 million reflecting primarily the seasonal drop of $4 to $5 million of license sales in our software division. We anticipate posting a pro forma loss per share in the range of one to three cents for the quarter," he concluded. Conference Call Available On Tuesday, August 14, from 5:30 to 6:30 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. CheckFree is hosting a conference call discussing past performance and expectations. To listen live, dial 1-800-310-8725 after 5:15 p.m. EST and ask for the CheckFree conference call hosted by Pete Kight. The conference is also accessible at www.checkfree.com, both live, and, beginning one hour following its conclusion, by digital replay. About CheckFree (www.checkfree.com) CheckFree (NASDAQ: CKFR) is the leading provider of financial electronic commerce services and products. Founded in 1981 and celebrating its 20th year in e-commerce, CheckFree is comprised of three divisions: Electronic Commerce, Software, and Investment Services. CheckFree launched the first fully integrated electronic billing and payment solution in 1997. As of June 30, 2001, CheckFree's Electronic Commerce division enabled more than 5.2 million consumers to receive and pay bills electronically. The company has multi-year contracts with 271 of the nation's top billers to provide online billing and payment through more than 300 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. organizations, including banks, brokerage firms, Internet portals and content sites and personal financial management (PFM) software. CheckFree Investment Services provides a broad range of investment management services to thousands of financial institutions nationwide. The division's clients manage more than 1,150,000 portfolios totaling more than $500 billion in assets. CheckFree's Software division provides solutions through three operating units operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon : CheckFree ACH Solutions, CheckFree Financial and Compliance Solutions (CFACS CFACS CheckFree Financial and Compliance Solutions ), and CheckFree i-Solutions. CheckFree i-Solutions is the leading provider of e-billing and e-statement software and hosting services for both business-to-consumer and business-to-business applications, with more billers as clients than all of its competitors have combined. CheckFree ACH Solutions provides software and services that are used to process more than two-thirds of the nation's six billion Automated Clearing House See ACH. payments, while CFACS provides and reconciliation and compliance software and services to more than 400 organizations in the banking, brokerage, utility, retail, insurance and credit card industries, among others. Fourth Quarter Highlights June 19 -- Cbeyond Communications makes electronic billing and payment services to its small business customers. Cbeyond is one of the first telecommunications companies See telecom company. in the country to use electronic bills as the sole mechanism for delivering bills to customers. June 11 -- Customers of Unitrin Property and Casualty Insurance Group (Unitrin P&C), a group of property and casualty insurers owned directly or indirectly by Unitrin, Inc. (NYSE NYSE See: New York Stock Exchange : UTR UTR Untranslated Region (genetics) UTR Unicode Technical Report UTR Unique Taxpayer Reference (UK Inland Revenue) UTR Unable to Reach UTR Unable to Reproduce UTR University Technical Representative ), can now receive and pay their Unitrin P&C bills through nearly 300 CheckFree-powered Web sites. June 5 -- CheckFree signs an agreement with E*TRADE Group Inc., (NYSE: ET) a leader in online financial services, to provide E*TRADE with CheckFree RECON Securities(TM) and CheckFree RECON SOLVER (TM) to support daily account and equities reconciliation. With the two solutions, CheckFree is enabling E*TRADE to further streamline its daily reconciliation, accounting and reporting of trades initiated on its system from around the globe. May 29 -- CheckFree i-Solutions named KUBRA, a leading application services See ASP and Web services. provider (ASP) that delivers comprehensive business-to-consumer (B2C (Business to Consumer) Refers to a business communicating with or selling to an individual rather than a company. See B2B. ) and business-to-business (B2B (Business to Business) Refers to one business communicating with or selling to another. See B2B e-commerce, B2C and B2G. B2B - business to business ) e-billing solutions, as Premier Certified See certification. Partner through its Certification Program. The CheckFree Partner Certification Program is designed to offer organizations technical, business and marketing expertise in leveraging CheckFree's leading distribution and payment systems as an extension of their own products and services. May 24 -- CheckFree successfully migrates TransPoint customers to Genesis. May 23-- CheckFree i-Solutions joins the Siebel Alliance Program as a Premier Software Partner. Siebel Systems Siebel is a brand name of Oracle Corporation. Siebel Systems, Inc., founded by Thomas Siebel in 1993, was principally engaged in the design, development, marketing and support of CRM applications. , Inc. (Nasdaq: SEBL SEBL Siebel Systems, Inc. (stock abbreviation, AMEX) ) is the world's leading provider of eBusiness applications software. May 22 -- CheckFree i-Solutions announces CheckFree i-Series 4.0. Using the latest i-Series solution, organizations can deliver dynamic, interactive billing content to both corporations and consumers from a single, integrated platform. i-Series 4.0 provides enhanced out-of-the-box features for handling large, complex bills and statements in a business-to-consumer (B2C) environment and invoices in a business-to-business (B2B) environment. May 10 -- American Fidelity Corporation, a 40 year old provider of insurance products and financial services, selects its CheckFree RECON-Plus(TM) for Windows(R) to automate manual processes and support daily account reconciliation. By automatically balancing accounts information from across the enterprise, this solution delivers a truer picture of the organization's cash position and provides timely access to business information. May 3 -- CheckFree i-Solutions signs an agreement with Xerox Europe to provide Diners Club Diners Club International, originally founded as Diners Club, is a credit card company formed in 1950 by Frank X. McNamara, Ralph Schneider and Casey R. Taylor. When it first emerged, it became the first independent credit card company in the world. Austria with CheckFree i-Series software as part of the Xerox total e-Document solution. Following Austria, the new e-Billing service will also be rolled out to Diners' cardholders in Slovakia, the Czech Republic Czech Republic, Czech Česká Republika (2005 est. pop. 10,241,000), republic, 29,677 sq mi (78,864 sq km), central Europe. It is bordered by Slovakia on the east, Austria on the south, Germany on the west, and Poland on the north. and Poland. May 1 -- Stephen Olsen, executive vice president and general manager of CheckFree's Electronic Commerce Division, was named Georgia CIO CIO: see American Federation of Labor and Congress of Industrial Organizations. (Chief Information Officer) The executive officer in charge of information processing in an organization. of the Year in the Global Category. April 19 -- CheckFree i-Solutions signs an agreement with Malaysian-based KnowledgeBaze, a customer relationship management (CRM (Customer Relationship Management) An integrated information system that is used to plan, schedule and control the presales and postsales activities in an organization. ) software and service provider, to offer electronic billing and payment (EBP EBP Evidence Based Practice EBP Enterprise Buyer Professional EBP Education Business Partnership EBP European Business Programme EBP Efficiency Bandwidth Product EBP Electronic Billing and Payment EBP Extended Base Pointer EBP Error Back Propagation ) capabilities to customers in Malaysia. April 10 -- CheckFree Investment Services unveils CheckFree APL (A Programming Language) A high-level mathematical programming language noted for its brevity and matrix generation capabilities. Developed by Kenneth Iverson in the mid-1960s, it runs on micros to mainframes and is often used to develop mathematical models. Plus, a new graphical user interface graphical user interface (GUI) Computer display format that allows the user to select commands, call up files, start programs, and do other routine tasks by using a mouse to point to pictorial symbols (icons) or lists of menu choices on the screen as opposed to having to (GUI (Graphical User Interface) A graphics-based user interface that incorporates movable windows, icons and a mouse. The ability to resize application windows and change style and size of fonts are the significant advantages of a GUI vs. a character-based interface. ) and client/server extension of the UNIX-based CheckFree APL. CheckFree APL Plus gives easy access to trading tools for portfolio managers and brokers. Merrill Lynch's Personal Investment Advisory Program is a signed customer. April 9 -- Southwest Bank of Texas, the largest independent bank in Houston, Texas “Houston” redirects here. For other uses, see Houston (disambiguation). Houston (pronounced /'hjuːstən/) is the largest city in the state of Texas and the , will use CheckFree RECON-Plus(TM) for Windows(R), from CheckFree's Financial and Compliance Solutions unit, to automate and support daily account reconciliation and daily deposit verification. Southwest Bank of Texas has been a CheckFree EC Division customer since 1997, using its WebPay solution. April 3 -- EDB EDB ethylene dibromide; a grain fumigant toxic to chickens. Teamco Dialog, Norway's largest bill consolidator, added one of the country's major electricity providers to its pioneering e-Billing service. EDB is using the CheckFree i-Series electronic billing and payment software platform. Storebrand, the providers of the Mastercard Black Internet credit card service, was EDB's first e-Biller to go live. Since then seven other customers have joined including Telenor's corporate and residential divisions, Istad Kraft, another major utility company, and a number of other utilities and financial services organizations including Net Bank, the network of 30 national Internet banks. To date, EDB generates over 1.3 million consolidated summary pages a month for its e-billers. Third Quarter Highlights March 19 -- Lowe's Home Improvement Warehouse announced that Lowe's six million credit card holders will be able to receive and pay their bills online. March 15 -- Internet World Names CheckFree's E-Bills and E-Payments through E-Mail "Best of Show" at Spring Internet World 2001. CheckFree is recognized among leading Internet companies for innovative use of technology and product leadership in business applications. March 14 -- National Life Insurance company selects CheckFree RECON-Plus(TM) for Windows(R) to automate manual processes and support daily account reconciliation. National Life is also implementing CheckFree APECS APECS Auger Photoelectron Coincidence Spectroscopy APECS All Purpose Environmental Clothing System APECS Advanced Process Engineering Co-Simulator APECS Advanced Performance Escape Cushioning System APECS Advance Portable Exciter Control Station (TM) to ensure compliance with abandoned property reporting requirements nationwide. March 13 -- CheckFree debuts two extensions to its electronic billing and payment capabilities, aimed squarely square·ly adv. 1. Mathematics At right angles: sawed the beam squarely. 2. In a square shape. 3. at accelerating the convenience of Internet billing and payments for consumers. The first enhancement is the ability for consumers to receive and pay e-bills over e-mail. The second is the ability for consumers to exchange money with each other using e-mail "invitations" to send or receive money. March 6 -- DST (1) (DeSTination) Contrast with SRC, which is an abbreviation of "source." (2) (Digital Signal Trust Company, Salt Lake City, UT, www.digsigtrust.com) An organization that sets up and manages PKI systems for companies and industry groups. Canada selects CheckFree RECON-Plus for Windows to support daily account reconciliation for its Transfer Agency Operations. DST Canada develops advanced back office software solutions and provides transfer agency services for financial institutions worldwide. February 26 -- CheckFree and Edward Jones Edward, Eddie, or Ed Jones is the name of: Edward Jones:
February 23 -- CheckFree i-Solutions and Honolulu Board of Water Supply (HBWS HBWS Honolulu Board of Water Supply (Hawaii) ), the largest water utility in Hawaii, announce that electronic billing and payment is now available to over 150,000 HBWS customers. HBWS utility customers in Oahu can save time while increasing control over bill payments by receiving and paying their monthly electric bills online. February 15 -- CheckFree i-Solutions opens its Asia/Pacific marketing, sales and service office in Singapore. The initial market entry for CheckFree i-Solutions is to support partner led engagements in the region with its i-Series platform. In addition to in-country partners, global partners include IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) , Xerox and EDS (Electronic Data Systems, Plano, TX, www.eds.com) Founded in 1962 by H. Ross Perot (independent candidate for the President of the U.S. in 1992), EDS is the largest outsourcing and data processing services organization in the country. . February 14 -- CheckFree Health & Fitness introduces RCM RCM Reliability-Centered Maintenance RCM Royal College of Music RCM Royal Conservatory of Music RCM Royal Canadian Mint RCM Reliability Centered Maintenance RCM Revenue Cycle Management RCM Regional Climate Model RCM Ring-Closing Metathesis Professional Services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. to provide club management and operations consulting to clients in the health club industry. RCM Professional Services will specialize spe·cial·ize v. 1. To limit one's profession to a particular specialty or subject area for study, research, or treatment. 2. To adapt to a particular function or environment. in technology solutions and business growth development. February 7 -- CheckFree i-Solutions announces that electronic billing and payment is now available to Entergy's residential customers in Louisiana. Entergy plans to roll out the service to its customers in Texas, Mississippi and Arkansas over the next 12 months. February 5 -- CheckFree Investment Services announces an agreement with Schwab Consulting Services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" , part of Charles Schwab Charles Schwab can refer to:
The direct exchange of cash and securities. Straight-through processing is a major objective for cross-border transactions that are generally much more costly to settle compared to domestic transactions. (STP STP or standard temperature and pressure, standard conditions for measurement of the properties of matter. The standard temperature is the freezing point of pure water, 0°C; or 273.15°K;. ) and portfolio reporting requirements of its new managed account service for independent, fee-based investment Fee-Based Investment An investment account in which the advisor's compensation is based on a set percentage of the client's assets instead of on commissions. Contrast this to commission-based investment, in which the advisor makes money based on the amount of trades made or the advisors. January 29 -- CheckFree i-Solutions and Amica Mutual Insurance Amica Mutual Insurance is a mutual insurance company founded in 1907 and located in Lincoln, Rhode Island offering primarily auto, home, and life insurance. The company is licensed in 49 US states with most business concentrated in the Northeastern United States, Florida, Texas, Company, a national writer of automobile, homeowners, marine and personal excess liability insurance, announced that Amica's 500,000 property and casualty insurance customers can now receive and pay bills online. As a leading insurance provider, Amica has chosen to implement integrated software Separate software components or applications that have been combined into one package. See integrated software package. and services from CheckFree i-Solutions. January 16 -- CheckFree Corporation (NASDAQ: CKFR), the leading provider of financial electronic commerce services and products, celebrated 20 years of industry leadership and technology innovation. The company was founded in January of 1981 by Pete Kight, CheckFree Chairman and CEO, in space his grandmother let him use in the basement of her home in Columbus, Ohio Columbus is the capital and the largest city of the American state of Ohio. Named for explorer Christopher Columbus, the city was founded in 1812 at the confluence of the Scioto and Olentangy rivers, and assumed the functions of state capital in 1816. . Second Quarter Highlights December 19 -- CheckFree awarded the "eward" for "Best Large Public Company in Georgia 2000" by the Technology Associate of Georgia (TAG) and the Atlanta Business Chronicle. December 7 -- CheckFree Health & Fitness Services, a division of CheckFree Corporation, redesigns its RCM2001 Club Management Software. Based on N-Tier computing computing - computer models, the club management solution offers additional scalability, performance, load balancing The fine tuning of a computer system, network or disk subsystem in order to more evenly distribute the data and/or processing across available resources. For example, in clustering, load balancing might distribute the incoming transactions evenly to all servers, or it might redirect them and flexibility to CheckFree's industry-leading management software. November 30 -- New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of State Electric and Gas (NYSEG NYSEG New York State Electric & Gas (utility) ) customers can now choose to conveniently receive and pay their monthly NYSEG bills electronically. November 29 -- CheckFree announced its new CheckFree WebPay for Small Business service that enables CheckFree financial services partners to deliver electronic bill payment services that are optimized for their base of small business customers. The service provides the functionality small businesses need to let them quickly and securely pay all of their bills online. November 15 -- CheckFree i-Solutions announced an agreement with Taipei-based C+H Technology Corporation (C+H) that enables C+H to offer electronic billing and payment (EBP) capabilities to companies in Taiwan The following is a list of companies based in Taiwan. : Top - 0–9 A B C D E F G H I J K L M N O P Q R S T U V W X Y Z By company name A Company Product(s) Notes Accton network infrastructure. Acer computer systems Active Development Co. . C+H, a specialist in software for printing and mailing subsystems, will resell re·sell tr.v. re·sold , re·sell·ing, re·sells 1. To sell again. 2. To sell (a product or service) to the public or to an end user, especially as an authorized dealer. the CheckFree i-Series suite of electronic billing software products and provide service and support for its customers in Taiwan. November 14 -- Bank of America and CheckFree announced that Bank of America has launched its new electronic billing and payment service, using the CheckFree Genesis platform, in selected Midwest markets. This marks the first stage of the implementation of the strategic alliance forged by the two companies in April 2000. November 13 -- CheckFree announced a strategic business alliance with Data Support Systems of Omaha, Nebraska “Omaha” redirects here. For other uses, see Omaha (disambiguation). Omaha is the largest city in the State of Nebraska, United States. It is the county seat of Douglas County.GR6 As of the 2000 census, the city had a population of 390,007. , and US Dataworks of Houston, Texas, to provide the industry's first end-to-end solution (jargon) end-to-end solution - (E2ES) A term that suggests that the supplier of an application program or system will provide all the hardware and/or software components and resouces to meet the customer's requirement and no other supplier need be involved. Compare: turn-key solution. for the conversion of returned checks to Automated Clearing House (ACH) items. The solution will integrate CheckFree's PEP+ (Paperless Entry Processing), US Dataworks' Returnworks system and TRIPS Incoming, the image-based return item processing solution from Data Support Systems. November 9 -- CheckFree announced that The Bombay Company The Bombay Company is a furniture and home accessories retailer based in Fort Worth, Texas, United States. History It was founded in 1978 by Brad Harper in New Orleans as a mail-order company. Harper later opened two retail stores in New Orleans. , Inc (NYSE: BBA BBA abbr. Bachelor of Business Administration ), a specialty home furnishings furnishings the extra type or quantity of hair on the head, tail, ears or legs, specified for a particular breed. For example, the feathers in setters, the beard in Bearded collies, the eyebrows in Schnauzers. and accessories retailer, will use CheckFree RECON-Plus for Windows to automate and support daily account reconciliation and daily deposit verification for its 400 stores 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. and Canada, and its mail order and online retail operations. November 6 -- CheckFree and GPU GPU: see secret police. (Graphics Processing Unit) A specialized logic chip devoted to rendering 2D or 3D images. Display adapters contain one or more GPUs for fast graphics rendering. Energy, which operates the largest electric distribution system in New Jersey and Pennsylvania, announced that electronic billing and payment is available to GPU Energy's customer base of more than two million customers in New Jersey, Pennsylvania and New York. October 31 -- CheckFree i-Solutions announced CheckFree i-Series 3.0, the first industrial strength software platform for high quality, high volume business-to-consumer and business-to-business electronic billing and statement applications. With the release of i-Series 3.0, CheckFree i-Solutions is delivering an advanced version of its flagship software product enabling billers to confidently deploy secure and reliable B2B and B2C e-billing applications for greater customer interaction. October 2 - CheckFree closes strategic agreement with Bank of America. CheckFree and Bank of America announced their intention to forge the strategic alliance on April 27, 2000 and began working together on plans to make electronic billing and payment services available to the Bank of America customer base. First Quarter Highlights September 28 - CheckFree shareholders approved the issuance of 10 million restricted shares of CheckFree Common Stock and performance-based warrants to purchase up to an additional 10 million shares of CheckFree Common Stock to Bank of America. September 19 - Sears, Roebuck and Company's approximately 60 million credit card customers will be able to view and pay their Sears bills online through their choice of CheckFree-powered Web sites. September 18 - CheckFree's client base of professional money managers and financial advisors is now running in excess of one million portfolios on the CheckFree APL platforms. September 12 - EDS announced it is adding electronic billing and payment capabilities from CheckFree i-Solutions, the leading provider of electronic billing and payment software and services, to its wide range of e-commerce solutions. September 7 - CheckFree named Pitney Bowes  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . docSense as a Premier Certified Partner through its CheckFree Partner Certification Program. The Certification Program is designed to offer partner organizations CheckFree's leading distribution and payment systems as a complement to the partners' products and services. September 5 - CheckFree and TransPoint close their merger. On September 1, 2000, CheckFree shareholders approved the issuance of 17 million shares of CheckFree Common Stock in connection with the merger with TransPoint. The two companies announced their plans to merge in February 2000. August 15 - CheckFree announced that it is providing EBP to SBC (1) (SBC Communications Inc., San Antonio, TX, www.sbc.com) A large, national telecommunications company that grew from a multitude of local and regional companies, including Southwestern Bell, Pacific Bell and Nevada Bell, into a single, unified brand by 2002. Communications, Inc. companies Pacific Bell and Southwestern Bell
Southwestern Bell Telephone, L.P. . Customers in California, Missouri California is a city in Moniteau County, Missouri, United States. The population was 4,005 at the 2000 census. It is the county seat of Moniteau CountyGR6. It is part of the Jefferson City, Missouri Metropolitan Statistical Area. , Oklahoma, Texas, Arkansas, and Kansas can view and pay their monthly Pacific Bell and Southwestern Bell bills online. July 31 - CheckFree and AT&T announced that AT&T's 60 million long distance customers can now view and pay their long distance phone bills online at their choice of CheckFree-powered web sites. July 27 - Yodlee.com and CheckFree announced an agreement that will enable users to experience the convenience of CheckFree's billing and payment services directly from Yodlee-powered services across the web. July 27 -- DocuCorp announced that electronic bill presentment and payment See EBPP. services are available for 155,000 residential and commercial members of Cobb Electric Membership Corporation (Cobb EMC (1) (EMC Corporation, Hopkinton, MA, www.emc.com) The leading supplier of storage products for midrange computers and mainframes. Founded in 1979 by Richard J. Egan and Roger Marino, EMC has developed advanced storage and retrieval technologies for the world's largest companies. ) of Marietta, GA. July 24 -- Reliant Energy's (NYSE REI) 1.6 million electric and natural gas customers in the Houston area can eliminate their paper bills by viewing and paying their bills online at www.reliantenergy.com. July 17 - Phillips 66 credit cardholders can now access their statements and pay their accounts online. July 13 - CheckFree and APS, Arizona's largest electric utility, announced an agreement to make electronic billing and payment available to APS customers. July 12 - CheckFree will incorporate the Equifax Secure authentication See authentication token and SecurID card. engine into its electronic and billing payment enrollment process to more quickly and securely verify customer identity when signing up for service to view and pay bills electronically. This press release contains statements that are not purely historical, and as such are 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. under the federal securities laws. These include forward-looking statements regarding management's intentions, plans, hopes, beliefs, expectations or projections of the future. They include statements in this document regarding forecasts of revenues, pro forma loss and sequential subscriber growth for the fiscal 2002 first quarter, and positive EBITDA and 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. performance for the fiscal 2002 year (paragraph 18, 19 and 20). These forward-looking statements involve risks and uncertainties, including without limitation, whether the planned technology developments will be successful and accepted by the Company's customers; whether the Company can deliver its services at the pace demanded by the marketplace; whether consumers will sign up for and use the Company's services when and as expected; whether the Company's customers, particularly financial institutions and Internet portals, timely announce, actively offer and aggressively market such services to their clients and users; whether the Company's business and market assumptions supporting its current revenue and earnings projections will prove to be accurate; and the various risks inherent in the Company's business and other risks and uncertainties detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission, including the Company's 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. for the year ended June 30, 2000, filed September 26, 2000 and Form 10-Q Form 10-Q See 10-Q. for the quarters ended September 30, 2000, filed November 14, 2000 and December 31, 2000, filed February 13, 2001, and March 31, 2001, filed May 11, 2001. One or more of these factors have affected, and could in the future affect, the Company's business and financial results in future periods, and could cause actual results to differ materially from plans and projections. There can be no assurance that the forward-looking statements made in this press release will prove to be accurate, and issuance of such forward-looking statements should not be regarded as a representation by the Company, or any other person, that the objectives and plans of the Company will be achieved. All forward-looking statements made in this press release are based on information presently available to management, and the Company assumes no obligation to update any forward-looking statements.
CHECKFREE CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statements of Operations
(Unaudited)
(In thousands, except per share data)
Three Months Ended Twelve Months Ended
June 30, June 30,
2000 2001 2000 2001
-------- -------- -------- --------
Revenues:
Processing and
servicing $ 72,191 $ 100,727 $ 261,621 $ 362,051
License fees 6,523 10,340 16,818 30,180
Maintenance fees 5,181 5,793 18,752 21,332
Other 4,605 4,912 13,004 19,757
-------- -------- -------- --------
Total Revenues 88,500 121,772 310,195 433,320
Expenses:
Cost of processing,
servicing and support 48,856 67,581 182,540 255,528
Research and
development 11,355 14,403 35,631 55,621
Sales, marketing and
royalties 15,260 18,440 44,782 90,283
General and
administrative 12,094 13,341 40,931 50,474
Depreciation and
amortization 19,041 122,500 42,830 427,495
In process research
and development 6,900 - 6,900 18,600
-------- -------- -------- --------
Total Expenses 113,506 236,265 353,614 898,001
-------- -------- -------- --------
Loss from operations (25,006) (114,493) (43,419) (464,681)
Interest, net (255) (141) (338) 2,261
Loss on investments - (1,933) - (16,077)
-------- -------- -------- --------
Loss before income
taxes (25,261) (116,567) (43,757) (478,497)
Income tax benefit (4,719) (28,876) (11,437) (115,362)
-------- -------- -------- --------
Net loss $ (20,542) $ (87,691) $ (32,320) $(363,135)
======== ======== ======== ========
Basic and diluted
loss per share:
Net loss per common
share $ (0.36) $ (1.01) $ (0.61) $ (4.49)
======== ======== ======== ========
Equivalent number of
shares 56,721 86,774 53,364 80,863
======== ======== ======== ========
CHECKFREE CORPORATION AND SUBSIDIARIES
Supplemental Pro Forma Consolidated Condensed Statements of Operations
(Unaudited)
(In thousands, except per share data)
Three Months Ended Twelve Months Ended
June 30, June 30,
2000 2001 2000 2001
-------- -------- -------- --------
Revenues:
Processing and
servicing $ 72,191 $ 100,727 $ 261,621 $ 362,051
License fees 6,523 10,340 16,818 30,180
Maintenance fees 5,181 5,793 18,752 21,332
Other 4,605 4,912 13,004 19,757
-------- -------- -------- --------
Total Revenues 88,500 121,772 310,195 433,320
Expenses:
Cost of processing,
servicing and support 48,856 67,581 182,540 255,528
Research and
development 11,355 14,403 35,631 55,621
Sales, marketing and
royalties 15,260 18,440 44,782 65,283
General and
administrative 12,094 13,341 40,931 50,474
Depreciation and
amortization 6,698 9,092 24,313 34,059
-------- -------- -------- --------
Total Expenses 94,263 122,857 328,197 460,965
-------- -------- -------- --------
Loss from operations (5,763) (1,085) (18,002) (27,645)
Interest, net (255) (141) (338) 2,261
-------- -------- -------- --------
Loss before income taxes (6,018) (1,226) (18,340) (25,384)
Income tax benefit (2,704) (447) (8,003) (10,593)
-------- -------- -------- --------
Net loss $ (3,314) $ (779) $ (10,337) $ (14,791)
======== ======== ======== ========
Basic and diluted loss
per share:
Net loss per common
share $ (0.06) $ (0.01) $ (0.19) $ (0.18)
======== ======== ======== ========
Equivalent number of
shares 56,721 86,774 53,364 80,863
======== ======== ======== ========
These supplemental pro forma statements of operations for the
three and twelve month periods ended June 30, 2000 and 2001 are for
illustrative purposes only and are not prepared in accordance with
generally accepted accounting principles. They present the operating
results of the Company, excluding acquisition related charges of $19.2
million for the three months ended June 30, 2000, which represents
$12.3 million of intangible amortization and $6.9 million of
in-process research and development charges; of $115.3 million for the
three months ended June 30, 2001, which represents $113.4 million of
intangible amortization and an investment impairment charge of $1.9
million; of $25.4 million for the twelve months ended June 30, 2000
which represents $18.5 million of intangible amortization and $6.9
million of in-process research and development charges; and of $453.1
million for the twelve months ended June 30, 2001, which represents
$393.4 million of intangible amortization, $18.6 million of in-process
research and development charges, a one time marketing related charge
of $25.0 million and $16.1 million of investment impairment charges.
The tax benefit in all periods has been adjusted for the impact of
deductible intangible asset amortization and other deductible charges
at a rate of 40%.
CHECKFREE CORPORATION AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
(Unaudited)
(In thousands)
June 30, June 30,
2000 2001
------------- -------------
Current assets:
Cash, cash equivalents,
and investments $ 184,622 $ 160,052
Accounts receivable, net 58,308 88,818
Other current assets 22,546 22,406
------------- -------------
Total current assets 265,476 271,276
Property and equipment, net 93,214 109,226
Capitalized software and
intangible assets, net 288,469 1,697,520
Deferred income taxes 29,248 -
Investments 23,003 96,042
Other 13,704 9,889
------------- -------------
Total assets $ 713,114 $ 2,183,953
============= =============
Current liabilities:
Accounts payable, accrued
liabilities and other $ 60,071 $ 83,702
Deferred revenues 26,644 44,913
------------- --------------
Total current liabilites 86,715 128,615
Accrued rent and other 7,269 4,758
Deferred income taxes - 141,853
Long-term obligations - less
current portion 736 4,041
Convertible subordinated notes 172,500 172,500
Net stockholders' equity 445,894 1,732,186
------------- --------------
Total liabilities and
stockholders' equity $ 713,114 $ 2,183,953
============= ==============
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