Corillian Reports First Quarter 2003 Results; Corillian Reports Higher Adjusted EBITDA and Beats Consensus EPS Estimate by $0.03 Per Share.Business Editors PORTLAND Portland, town, England Portland, town (1991 pop. 12,945), Dorset, S England. It is on the Isle of Portland, a small rocky peninsula. Portland stone has been used in St. Paul's Cathedral and other important London buildings. Lobsters and crabs are harvested. , Ore.--(BUSINESS WIRE)--April 23, 2003 Corillian Corp. (Nasdaq:CORI), a premier provider of enterprise software and services for the 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. industry, today reported financial results for the first quarter ended March 31, 2003. Revenues for the first quarter were $10.8 million, compared to $10.1 million for the fourth quarter of 2002 and $10.1 million for the first quarter of 2002. Net loss for the first quarter was $441,000, resulting in a net loss per share of $0.01 on 36.2 million weighted shares outstanding. The consensus estimate reported by First Call was a $0.04 loss per share. The net loss per share for the comparable prior year period was $0.11 on 35.2 million weighted shares outstanding. Adjusted 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 for the quarter was approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $1.1 million, compared to an adjusted EBITDA of $301,000 in the fourth quarter of 2002 and an adjusted EBITDA loss of $2.1 million for the comparable prior year period. An explanation of Corillian's practice of reporting adjusted EBITDA results is described below. Cash and investment balances at the end of the first quarter were $21.4 million, compared to $17.6 million at the end of the fourth quarter of 2002. During the quarter, Corillian entered into an expanded licensing agreement with one of its larger customers and received a large license fee payment from this customer, which significantly increased its cash and deferred revenue balances. "In our last earnings call, we said that we would return to solid growth and deliver increased earnings throughout 2003. Increases in revenue and adjusted EBITDA in the first quarter indicate that we are well on our way to achieving those goals," said Alex (language) Alex - 1. A polymorphic language being developed by Stephen Crawley <sxc@itd.dtso.oz.au> of Defence Science & Tech Org, Australia. Alex has abstract data types, type inference and inheritance. 2. v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the opportunities in the market." Recent Highlights -- During the first quarter, Corillian signed a significant licensing agreement with one of its existing customers to enable it to extend the functionality and capabilities of the Corillian Voyager Voyager, airplane Voyager, the first airplane to circumnavigate the earth nonstop on a single load of fuel. Designed by Burt Rutan and flown by Dick Rutan and Jeana Yeager, Voyager took off from California on Dec. platform across its enterprise and growing user base. -- Corillian announced that financial institutions are using Corillian's Voyager platform to provide online financial services to over 10 million consumer and small business customers, more than a quarter of the online banking and bill payment population of 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. . This compares to approximately 9.1 million at the end of the fourth quarter of 2002 and 6.5 million end users at the end of the first quarter of 2002. -- During the first quarter, four more customers went live on the Corillian Voyager platform, including two top 50 U.S. banks. Corillian now has 52 customers live, of which nine are live on the Corillian Voyager 3.0 platform. Financial Outlook Based on its current backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. of projects in implementation and sales pipeline, Corillian anticipates that second quarter 2003 revenue will be in the range of $10 million to $11 million and that revenue for 2003 will be 10 to 15 percent higher than revenue for 2002. Corillian continues to expect to be adjusted EBITDA positive throughout 2003. Adjusted EBITDA Results Adjusted EBITDA results exclude interest, taxes, depreciation, amortization and other income (expense), net, and are provided by Corillian as a complement to reported net loss, which is provided using accounting principles generally accepted in the United States of America UNITED STATES OF AMERICA. The name of this country. The United States, now thirty-one in number, are Alabama, Arkansas, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, New Hampshire, (or GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ). Corillian believes that adjusted EBITDA is a useful metric for Corillian and its investors because it excludes certain items that relate to non-operating activities and non-cash items and because other companies in its industry provide a similar metric. A table detailing the differences between Corillian's reported net loss under GAAP and adjusted EBITDA is included in the consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: statements of operations below. Corillian will hold a conference call at 5:00 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. on April 23, 2003 to discuss the quarterly results and business outlook. Investors and other interested parties can listen to the conference call over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at Corillian's corporate Web site at http://investor.corillian.com. About Corillian Corporation Corillian is a premier provider of enterprise software and services for the financial services industry. Empowered with Corillian solutions, some of the world's most visionary 1. visionary - One who hacks vision, in the sense of an Artificial Intelligence researcher working on the problem of getting computers to "see" things using TV cameras. (There isn't any problem in sending information from a TV camera to a computer. financial institutions provide their customers with the tools to manage their finances more effectively. Built on the Microsoft Windows See Windows. (operating system) Microsoft Windows - Microsoft's proprietary window system and user interface software released in 1985 to run on top of MS-DOS. Widely criticised for being too slow (hence "Windoze", "Microsloth Windows") on the machines available then. 2000 Server family, .NET enterprise servers, and the .NET framework, Corillian's solutions are unmatched in reliability and performance, and successfully scale at some of the world's largest financial institutions. Corillian's proven solutions enable financial institutions to deliver innovative services enterprise-wide, across multiple delivery channels and multiple lines of business. The Corillian Voyager platform provides secure and scalable account access 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. for a wide variety of applications built by Corillian's expert software developers, by Corillian-certified partners, and by the in-house In-house In the context of general equities, keeping an activity within the firm. For example, rather than go to the marketplace and sell a security for a client to anyone, an attempt is made to find a buyer to complete the transaction with the firm. development organizations of some of the world's best financial institutions. For more information about Corillian Corporation, visit the company's Web site at http://www.corillian.com. Matters discussed in this release may include forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties, and actual results may be materially different. For example, statements regarding Corillian's business outlook and prospects for success in the online financial software and services industry are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. . Factors that could cause actual results to differ include the risk that Corillian's solutions do not continue to gain market acceptance, that Corillian fails to sign new customers, that Corillian's existing customers do not continue to demand products and services from Corillian, that Corillian's customers experience performance problems or security breaches using Corillian's solutions, that Corillian does not recognize an increased percentage of license and maintenance revenues, that Corillian encounters significant problems in implementing its software for its customers or significant delays in developing software for its customers, that Corillian incurs significant legal expenses or losses in lawsuits and that financial institutions are affected by adverse government regulations or market conditions. Other risks include those stated in Corillian's reports and other documents filed from time to time with the Securities and Exchange Commission including its report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December December: see month. 31, 2002.
CORILLIAN CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
For the Quarter Ended
------------ ------------ ------------
March 31, December 31, March 31,
2003 2002 2002
------------ ------------ ------------
Revenues $10,848 $10,059 $10,063
Cost of revenues 5,061 4,950 5,323
------------ ------------ ------------
Gross profit 5,787 5,109 4,740
------------ ------------ ------------
Operating expenses:
Sales and marketing 1,833 2,432 3,277
Research and development 1,730 1,695 1,862
General and administrative 2,196 2,042 3,031
Amortization of deferred
stock-based compensation 35 140 325
------------ ------------ ------------
Total operating expenses 5,794 6,309 8,495
------------ ------------ ------------
Loss from operations (7) (1,200) (3,755)
Other expense, net (434) (266) (275)
------------ ------------ ------------
Net loss $ (441) $(1,466) $(4,030)
============ ============ ============
Basic and diluted net loss per
share $ (0.01) $ (0.04) $ (0.11)
Shares used in computing basic
and diluted net loss per share 36,237 35,996 35,181
Net loss per GAAP $ (441) $(1,466) $(4,030)
Amortization of deferred
stock-based compensation 35 140 325
Other expense, net 434 266 275
Depreciation and amortization 1,053 1,361 1,290
------------ ------------ ------------
Adjusted EBITDA $ 1,081 $ 301 $(2,140)
============ ============ ============
CORILLIAN CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
-------------- ---------------
March 31, 2003 Dec. 31, 2002
-------------- ---------------
ASSETS
Current assets:
Cash and investments $ 21,447 $ 17,631
Restricted cash 1,007 1,003
Accounts receivable 4,256 3,987
Revenue in excess of billing 1,191 1,542
Other current assets 3,337 3,276
-------------- ---------------
Total current assets 31,238 27,439
Property and equipment, net 7,376 8,376
Other assets 2,211 1,664
-------------- ---------------
Total assets $ 40,825 $ 37,479
============== ===============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
liabilities $ 3,781 $ 3,868
Deferred revenue 19,319 13,981
Current portion of long-term debt and
capital lease obligations 1,606 2,245
Other current liabilities 985 1,421
-------------- ---------------
Total current liabilities 25,691 21,515
Long-term debt and capital lease
obligations, less current portion 1,144 1,600
Other long-term liabilities 1,198 1,243
-------------- ---------------
Total liabilities 28,033 24,358
-------------- ---------------
Shareholders' equity:
Common stock 126,227 126,141
Deferred stock-based compensation - (35)
Unrealized translation gain 40 49
Accumulated deficit (113,475) (113,034)
-------------- ---------------
Total shareholders' equity 12,792 13,121
-------------- ---------------
Total liabilities and
shareholders' equity $ 40,825 $ 37,479
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