CheckFree Posts Record Results for the Second Quarter of Fiscal 2001.Business Editors ATLANTA--(BUSINESS WIRE)--Jan. 23, 2001 CheckFree Corporation: -- 222 billers are now signed to use CheckFree's electronic billing and payment services, and nearly 275 Internet sites enable consumers to view and pay bills -- Electronic payment percentage passes 60 percent mark -- Eight percent sequential quarterly subscriber growth continues CheckFree Corporation (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) ) today announced revenues of $107.7 million for the second quarter ended December 31, 2000 compared to $73.0 million for the same quarter of Fiscal 2000. Total revenues for the quarter increased 48 percent over the comparative quarter of last 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 $5.0 million, or six 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. , excluding the impact of acquisition-related amortization and one-time charges. This compares to a pro forma loss of $2.5 million, or five cents per share, for the same period in fiscal 2000. 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, "I continue to be very pleased with the progress we are making this year. Our Internet-based subscriber growth continued to be above 20 percent, and our overall subscriber growth rate of eight percent was at the high end of our expectations. This growth continues to reflect subscriber gains distributed across our base of Consumer Service Providers. Healthy increases in bills distributed were spread relatively evenly across both billers and Consumer Service Providers, and we showed a strong gain in the percent of transactions we processed electronically this quarter. Our quality levels continued to set the standard for the industry, and we achieved our goal of 4.6 Sigma SIGMA - A scientific visual programming environment from NASA. http://fi-www.arc.nasa.gov/fia/projects/sigma/. , which equates to 99.9 percent system availability and transaction processing Updating the appropriate database records as soon as a transaction (order, payment, etc.) is entered into the computer. It may also imply that confirmations are sent at the same time. Transaction processing systems are the backbone of an organization because they update constantly. quality," Kight said. Solid Performance on All Core 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:
Significant accomplishments relevant to CheckFree's goal of continuing to lead and to accelerate the electronic billing and payment market include:
-- Nearly 275 sites are now live with full electronic billing and
payment, up from nearly 250 at the end of the first quarter of
FY 2001 and compared to just over 100 at the close of the
second quarter of fiscal 2000.
-- The Company signed deals for electronic billing and payment
with 12 billers in the second quarter, bringing to 222 the
total roster of bills that will soon be available on the
Internet, which is up from 89 at the close of the second
quarter of fiscal 2000. One hundred and forty four of these
bills are available on the Internet today, up from 62 at the
close of the second quarter of fiscal 2000.
-- CheckFree exceeded 210,000 bills distributed over the Internet
in December, up from about 140,000 bills distributed on the
Internet in September, and up from around 38,000 bills
distributed in December of fiscal 2000. This equates to a run
rate of more than 2.5 million bills per year.
-- Second quarter sequential quarterly subscriber growth was
eight percent, bringing the total subscriber count at the end
of the quarter to just over 4.4 million. This count includes
the 300,000 EBP subscribers assimilated from Bank of America's
California platform at the beginning of the second quarter.
The second quarter subscriber growth rate was eight percent in
total and restated for these subscribers. As in previous
quarters, subscriber growth reflects across the board gains
from CheckFree's Consumer Service Provider partners, and
greater than 20 percent growth from Internet-based
subscribers.
-- The Company processed more than 18 million transactions in
December, including about one million transactions from Bank
of America's California platform. The Company achieved an
electronic payment rate in excess of 60 percent, both with and
without these transactions factored in, reflecting continued
improvements in patented processes around risk management and
payment routing, as well as improvements in exception
prevention and electronic remittance connections.
"We had a very good quarter across our electronic commerce operations and an extraordinary quarter from a quality perspective," said 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. . "This quarter we achieved our goal of 99.9 percent systems availability and transaction processing quality, also known as `dial tone' reliability. "This achievement sets the standard for quality in the electronic billing and payment industry," Sinisgalli continued. "It also confirms our earlier estimation estimation In mathematics, use of a function or formula to derive a solution or make a prediction. Unlike approximation, it has precise connotations. In statistics, for example, it connotes the careful selection and testing of a function called an estimator. that optimal efficiency in this market requires integrating electronic billing and payment processes on a single system. We could not have achieved this exceptional quality with the disparate systems we operated before building Genesis. In fact, the exacting level of quality we attained this quarter led to a customer-claims-to-payments ratio of less than four in one thousand, and even the majority of these were simply information requests, not financial claims. These successes reinforce our confidence in our system's robust quality and economies-of-scale efficiency," Sinisgalli said. Strong Division Performance CheckFree's Electronic Commerce division reported revenue of $74.4 million for the quarter, representing 47 percent growth over the same quarter of fiscal 2000. The division posted a pro forma 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 $6.3 million, compared to a pro forma loss of $4.5 million for the second quarter of fiscal 2000. CheckFree Investment Services reported revenue of $17.0 million for the quarter, a 29 percent increase over the same quarter last year. 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. for the quarter was $4.0 million, down slightly from the second quarter of fiscal 2000, due to timing of investments in product innovations and processing infrastructure. After having surpassed the one-million mark for portfolios under management in the first quarter, the division grew this metric by 6 percent in the second quarter. The Company's Software businesses reported revenue in the quarter of $16.3 million, up 80 percent over revenue generated in the second quarter of fiscal 2000. Pro forma operating income was $1.2 million, down from pro forma operating income of $2.5 million in the second quarter of fiscal 2000, reflecting, as planned, continued substantial investment in CheckFree i-Solutions, the Company's e-billing and e-statement software and services unit formed last March following the acquisition of 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. Third Quarter Expectations "We are forecasting revenues for the third quarter of fiscal 2001 to be in the range of $109 million to $114 million, with a pro forma loss per share of around four to six cents," said David Mangum, CheckFree's chief financial officer. "These expectations include nearly $3.0 million in incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. revenue from Microsoft, related to our acquisition of TransPoint. "In addition, we expect sequential subscriber growth for the third quarter to be in the range of seven to nine percent," Mangum continued. "Although 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. will not begin its mass media electronic billing and payment campaign until the fourth quarter of 2001, we anticipate adoption at a rate modestly above our historic rate of six to eight percent sequential quarterly subscriber growth due to some increased localized Translated into the spoken language of the country. See localization. marketing activity by a number of Consumer Service Providers, and the broader availability of 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 in states in which Bank of America now offers the service," he added. About CheckFree CheckFree Corporation is the leading provider of financial electronic commerce services, software and related products. Through its operating subsidiaries An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. , CheckFree designs, develops and markets services that enable more than four million consumers to receive and pay bills over the Internet or electronically through a variety of bill aggregation points, including banks, brokerage firms, portals and interactive content sites on the Internet, and personal financial management (PFM) software. CheckFree's range of services and products are focused on enabling customers to receive electronic bills and statements, make electronic payments and collections, automate To turn a set of manual steps into an operation that goes by itself. See automation. paper-based 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. financial transactions and conduct secure Internet transactions. 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, announces the redesign re·de·sign tr.v. re·de·signed, re·de·sign·ing, re·de·signs To make a revision in the appearance or function of. re of its 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 2001 Club Management Software. Based on N-Tier computing computing - computer models, the redesigned club management solution will offer 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 at nearly 250 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. Web sites that offer CheckFree services. 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 new 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 announcement 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 “Houston” redirects here. For other uses, see Houston (disambiguation). Houston (pronounced /'hjuːstən/) is the largest city in the state of Texas and the , 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 See ACH. (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 ) 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. The joint solution will enable companies and financial institutions to convert returned checks into ACH items in order to expedite ex·pe·dite tr.v. ex·pe·dit·ed, ex·pe·dit·ing, ex·pe·dites 1. To speed up the progress of; accelerate. 2. the clearing process. This practice will result in improved collection rates and increased flexibility in the management of returned items. 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 NYSE See: New York Stock Exchange : 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 (Business to Business) Refers to one business communicating with or selling to another. See B2B e-commerce, B2C and B2G. B2B - business to business and B2C (Business to Consumer) Refers to a business communicating with or selling to an individual rather than a company. See B2B. e-billing applications for greater customer interaction. October 24 -- CheckFree announced revenues of $90.8 million for the first quarter ended September 30, 2000 compared to $69.0 million for the same quarter of 2000. Total revenues for the quarter increased 31 percent over the comparative quarter of last year. October 2 - CheckFree announced that its strategic agreement with Bank of America has closed. 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 (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. platforms. September 12 - 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. 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 See certification. 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 announced that the merger of the two companies has closed. 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. July 11 -Internet infrastructure developer 724 Solutions and CheckFree agreed to make EBP over wireless devices available to financial institutions that use CheckFree and the 724 Solutions Financial Services Platform. July 10 - TIAA-CREF TIAA-CREF Teachers Insurance and Annuity Association - College Retirement Equities Fund has selected CheckFree RECON-Plus for Windows to support daily account reconciliation for its growing transaction volume base. 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, and include statements in this document regarding forecasts of revenues, pro forma loss and sequential subscriber growth for the fiscal third quarter (paragraphs 15 and 16). 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 quarter ended September 30, 2000, filed November 14, 2000. 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 Six Months Ended
December 31, December 31,
1999 2000 1999 2000
-------- -------- -------- --------
Revenues:
Processing and servicing $ 62,627 $ 89,528 $120,931 $165,687
License fees 3,201 7,216 6,197 12,263
Maintenance fees 4,518 5,660 8,956 10,307
Other 2,623 5,317 5,905 10,221
-------- -------- -------- --------
Total Revenues 72,969 107,721 141,989 198,478
Expenses:
Cost of processing,
servicing and support 43,906 66,586 86,899 119,658
Research and development 8,286 14,023 15,110 27,941
Sales, marketing and
royalties 9,909 40,750 18,577 55,054
General and administrative 9,363 12,798 19,287 24,290
Depreciation and amortization 7,780 124,134 14,756 179,868
In process research and
development - - - 18,600
-------- -------- -------- --------
Total Expenses 79,244 258,291 154,629 425,411
-------- -------- -------- --------
Loss from operations (6,275) (150,570) (12,640) (226,933)
Interest, net (102) 1,450 143 1,775
-------- -------- -------- --------
Loss before income taxes (6,377) (149,120) (12,497) (225,158)
Income tax benefit (2,408) (33,098) (4,592) (50,778)
-------- -------- -------- --------
Net loss $ (3,969) $(116,022) $ (7,905) $(174,380)
======== ======== ======== =========
Basic and diluted loss per share:
Net loss per common share $ (0.08) $ (1.34) $ (0.15) $ (2.32)
======== ======== ======== =========
Equivalent number of shares 52,200 86,286 52,023 75,104
======== ======== ======== =========
CHECKFREE CORPORATION AND SUBSIDIARIES
Supplemental Pro Forma Consolidated Condensed Statements of Operations
(Unaudited)
(In thousands, except per share data)
Three Months Ended Six Months Ended
December 31, December 31,
1999 2000 1999 2000
-------- -------- -------- --------
Revenues:
Processing and servicing $ 62,627 $ 89,528 $120,931 $165,687
License fees 3,201 7,216 6,197 12,263
Maintenance fees 4,518 5,660 8,956 10,307
Other 2,623 5,317 5,905 10,221
-------- -------- -------- --------
Total Revenues 72,969 107,721 141,989 198,478
Expenses:
Cost of processing,
servicing and support 43,906 66,586 86,899 119,658
Research and development 8,286 14,023 15,110 27,941
Sales, marketing and
royalties 9,909 15,750 18,577 30,054
General and administrative 9,363 12,798 19,287 24,290
Depreciation and amortization 5,810 8,487 10,813 16,320
-------- -------- -------- --------
Total Expenses 77,274 117,644 150,686 218,263
-------- -------- -------- --------
Loss from operations (4,305) (9,923) (8,697) (19,785)
Interest, net (102) 1,450 143 1,775
-------- -------- -------- --------
Loss before income taxes (4,407) (8,473) (8,554) (18,010)
Income tax benefit (1,955) (3,505) (3,669) (7,511)
-------- -------- -------- --------
Net loss $ (2,452) $ (4,968) $ (4,885) $(10,499)
======== ======== ======== =========
Basic and diluted loss per share:
Net loss per common share $ (0.05) $ (0.06) $ (0.09) $ (0.14)
======== ======== ======== =========
Equivalent number of shares 52,200 86,286 52,023 75,104
======== ======== ======== =========
These supplemental pro forma statements of operations for the
three and six month periods ended December 31, 1999 and 2000 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 $2.0
million for the three months ended December 31, 1999, which represents
intangible amortization; of $140.7 million for the three months ended
December 31, 2000, which represents $115.7 million of intangible
amortization and a one time marketing related charge of $25.0 million;
of $3.9 million for the six months ended December 31, 1999 which
represents intangible amortization; and of $207.1 million for the six
months ended December 31, 2000, which represents $163.5 million of
intangible amortization, $18.6 million of in-process research and
development charges and a one time marketing related charge of $25.0
million. 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, December 31,
2000 2000
------------- -------------
Current assets:
Cash, cash equivalents,
and investments $ 184,622 $ 219,005
Accounts receivable, net 58,308 69,626
Other current assets 22,546 15,582
------------- -------------
Total current assets 265,476 304,213
Property and equipment, net 93,214 97,341
Capitalized software and
intangible assets, net 288,469 1,927,638
Deferred income taxes 29,248 -
Investments 23,003 62,273
Other 13,704 10,858
------------- -------------
Total assets $ 713,114 $ 2,402,323
============= =============
Current liabilities:
Accounts payable, accrued
liabilities and other $ 60,071 $ 66,022
Deferred revenues 26,644 37,750
------------- -------------
Total current liabilites 86,715 103,772
Accrued rent and other 7,269 5,911
Deferred income taxes - 213,352
Long-term obligations -
less current portion 736 4,561
Convertible subordinated notes 172,500 172,500
Net stockholders' equity 445,894 1,902,227
------------- -------------
Total liabilities and
stockholders' equity $ 713,114 $ 2,402,323
============= =============
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