Corillian Reports First Quarter 2004 Results; Generates $0.05 EPS, Beating Consensus Analyst Estimate by $0.01.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 29, 2004 Corillian Corp. (Nasdaq:CORI), the top provider of online banking solutions to leading financial institutions, today reported financial results for the first quarter ended March 31, 2004. Revenues for the first quarter were $11.7 million, compared to $10.8 million for the first quarter of 2003, an increase of eight percent. Net income for the first quarter was $1.8 million, resulting in diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of of $0.05, beating the consensus analyst estimate by $0.01. This compares to a net loss of ($441,000) in the first quarter of 2003, which resulted in a net loss per share of ($0.01). Cash and investment balances at the end of the first quarter were $29.7 million, compared to $26.8 million at the end of the fourth quarter of 2003. "We had another strong quarter, our fourth consecutive profitable quarter," 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. Contraction of we are. we're we are confident that the progress demonstrated in the first quarter will continue and will result in increasing revenues and profits in 2004." Recent Highlights -- Two top 100 U.S. banks selected Corillian Consumer Banking to replace their existing online banking solutions. -- Two smaller financial institutions selected Corillian's shared server solution offered by NCR (NCR Corporation, Dayton, OH, www.ncr.com) A technology company specializing in financial terminal transactions, retail systems and data warehousing. Until the late 1990s, NCR was heavily invested in the hardware side of the industry, known worldwide as a major manufacturer of computers . -- One of Corillian's top 10 banks successfully converted its consumer online banking users to 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. The launch of the new consumer site builds on the bank's highly successful online small business banking service, which is also deployed on the industry-leading Corillian Voyager online banking platform. -- Corillian successfully converted Charter One's more than 700,000 consumer and small business online users to the Corillian Voyager platform in a record five-month timeframe. -- Boeing (language) BOEING - An early system on the IBM 1130. [Listed in CACM 2(5):16, May 1959]. Employees' Credit Union (BECU BeCu Beryllium Copper BECU Boeing Employees Credit Union BECU Brethren Employees' Credit Union (Church of the Brethren) BECU Body Electronic Control Unit (automotive) BECU Bowater Employees Credit Union ), the fifth largest credit union in the country, selected Corillian Small Business as its solution of choice to enter the rapidly growing small business banking market. -- State Employees' Credit Union of North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. (SECU SECU State Employees Credit Union of Maryland SECU Security Financial Group, Inc. SECU Saginaw Eaton Credit Union (Saginaw, Michigan) SECU Standard Electronic Control Unit ), the second largest credit union in the country, chose to upgrade to the Corillian Voyager 3.1 platform. Financial Outlook Based on the 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 2004 revenues will be in the range of $11.5 to $12.5 million and EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. will be in the range of $0.04 to $0.06. With the growing strength and maturity of the sales pipeline, substantial performance bonuses Corillian expects to earn on existing projects and the generally positive trends in the online banking industry, Corillian expects that results for the second half of 2004 will be stronger than anticipated results for the first half. Corillian will hold a conference call at 5:00 p.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT on April 29, 2004, 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 the top provider of online banking solutions to leading financial institutions. 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. 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 fails to sign new customers, that Corillian does not realize anticipated business from its sales pipeline, that Corillian's existing customers do not continue to demand new products and services from Corillian, that Corillian's customers experience performance problems or security breaches using Corillian's solutions, that Corillian's partners are not able to fulfill ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. their contractual obligations to Corillian and such failure negatively impacts Corillian customers, that Corillian is not able to fulfill acceptance criteria criteria (krītēr´ē  ),n. on projects for its customers and fails to earn performance bonuses or receive milestone “Milemarker” redirects here. For the American indie rock band, see Milemarker (band). A milestone or kilometre sign is one of a series of numbered markers placed along a road at regular intervals, typically at the side of the road or in a median. payments on such projects, 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 Dec. 31, 2003.
CORILLIAN CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
For the Quarter Ended
-------------------------
March 31, March 31,
2004 2003
------------ ------------
Revenues $11,697 $10,848
Cost of revenues 5,010 5,061
------------ ------------
Gross profit 6,687 5,787
------------ ------------
Operating expenses:
Sales and marketing 1,687 1,833
Research and development 1,391 1,730
General and administrative 1,564 2,196
Amortization of deferred stock-based
compensation - 35
------------ ------------
Total operating expenses 4,642 5,794
------------ ------------
Income (loss) from operations 2,045 (7)
Other expense, net (172) (434)
------------ ------------
Income (loss) before income taxes 1,873 (441)
Income taxes 40 -
------------ ------------
Net income (loss) $ 1,833 $ (441)
============ ============
Basic net income (loss) per share $ 0.05 $ (0.01)
Diluted net income (loss) per share $ 0.05 $ (0.01)
Shares used in computing basic net income
(loss) per share 37,154 36,237
Shares used in computing diluted net income
(loss) per share 40,510 36,237
CORILLIAN CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
March 31, Dec. 31,
2004 2003
----------- -----------
ASSETS
Current assets:
Cash and investments $ 29,739 $ 26,844
Accounts receivable, net 4,679 6,103
Revenue in excess of billing 780 1,258
Other current assets 1,576 1,545
----------- -----------
Total current assets 36,774 35,750
Property and equipment, net 5,199 5,765
Other assets 1,042 1,303
----------- -----------
Total assets $ 43,015 $ 42,818
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 2,880 $ 3,276
Deferred revenue 14,170 15,560
Current portion of long-term debt and capital
lease obligations 1,317 1,529
Other current liabilities 954 968
----------- -----------
Total current liabilities 19,321 21,333
Long-term debt and capital lease obligations,
less current portion 818 1,075
Other long-term liabilities 796 856
----------- -----------
Total liabilities 20,935 23,264
----------- -----------
Shareholders' equity:
Common stock 128,115 127,414
Unrealized translation gain 40 48
Accumulated deficit (106,075) (107,908)
----------- -----------
Total shareholders' equity 22,080 19,554
----------- -----------
Total liabilities and shareholders'
equity $ 43,015 $ 42,818
=========== ===========
CORILLIAN CORPORATION
SUPPLEMENTAL INFORMATION
(unaudited)
License revenues for the first quarter of 2004 were $5.0 million, or
43% of total revenues, as compared to $4.0 million in the first
quarter of 2003, comprising 37% of total revenues. License block sales
in the first quarter of 2004 were approximately $600,000, as compared
to approximately $1.3 million in license block sales in the first
quarter of 2003. Depreciation expense for the first quarter of 2004
was approximately $700,000, compared to $1.1 million in the first
quarter of 2003.
Corillian's revenue backlog was $35.7 million as of March 31, 2004,
compared to $37.2 million at the end of the fourth quarter of 2003.
Revenue backlog represents contractual customer commitments, including
fees for licenses, professional services, maintenance, hosting and
subscriptions. Backlog is not necessarily indicative of revenues to be
recognized in any given future period. For example, some of the fees
reflected in backlog may be accounted for as funded research and
development, depending on the nature of the work to be performed by
Corillian. There are many factors that would impact Corillian's
filling of backlog, such as its progress in completing projects for
its customers, Corillian's customers' meeting anticipated schedules
for customer-dependent deliverables, and Corillian's customers'
satisfying their contractual obligations. Corillian provides no
assurances that any portion of its backlog will be filled during any
fiscal year or at all or that its backlog will be recognized as
revenues in any given period.
Total headcount as of March 31, 2004 was 213, compared with 229 as of
March 31, 2003.
The actual total number of shares outstanding as of March 31, 2004 was
37.4 million shares.
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