Corillian Reports First Quarter 2006 Results; Corillian Grows Revenue and Backlog.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. -- Corillian Corp. (Nasdaq:CORI), the top provider of online banking, payment and anti-fraud solutions to 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, 2006. Revenues for the first quarter were $14.3 million, compared to $13.8 million for the fourth quarter of 2005. Net loss for the first quarter was $971,000, resulting in a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. net loss per share of ($0.02), compared to a net loss of $39,000 for the fourth quarter of 2005, resulting in a diluted net loss per share of ($0.00). The net loss of $971,000 in the first quarter includes expense of approximately $560,000 related to FAS 123R, which Corillian incurred for the first time in the first quarter of 2006. 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 net income -- before amortization of acquisition-related intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. and stock-based compensation expense -- for the first quarter was $15,000, resulting in net income of $0.00 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 . This compares to pro forma net income before amortization of acquisition-related intangible assets of $384,000 in the fourth quarter of 2005, resulting in $0.01 earnings per share. A reconciliation of GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). results to pro forma results is provided as part of this press release. "I am pleased with the progress we've we've Contraction of we have. we've have made in executing on the vision we described in 2005. Recent product launches and customer wins demonstrate that we are broadening both our product line and our addressable Reachable. When something is addressable, it can be identified and manipulated independently of its surroundings. For example, screen pixels and RAM memory are addressable. Each of the screen's picture elements can be individually turned on and off, and each of the memory's bytes can be market," 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. Traction is the use of a pulling force to treat muscle and skeleton disorders. Purpose Traction is usually applied to the arms and legs, the neck, the backbone, or the pelvis. in business banking, payments, and online security, and the investments we've made to make our industry-leading consumer solutions more configurable are resulting in a growing pipeline of opportunities with financial institutions of all sizes. These developments would not be possible, of course, without our continued commitment to providing our customers with great products, unequalled project management skills, and world-class world-class adj. 1. Ranking among the foremost in the world; of an international standard of excellence; of the highest order: a world-class figure skater. 2. support. The recent launch of Corillian solutions at Capital One, The Golden One, Commerce Bank, and another top 50 U.S. bank is a testament to the value that our customers place on a certain outcome in an uncertain world." Recent Highlights --People's Bank, an $11 billion financial services company headquartered in Bridgeport Bridgeport, city (1990 pop. 141,686), Fairfield co., SW Conn., on Long Island Sound; inc. 1836. Long a chief industrial city in Connecticut, it makes electrical appliances, transportation equipment, clothing, ammunition, metal products, wiring devices, machinery, , Conn., selected Corillian Consumer Banking as its next-generation online banking system. --Corillian also added a $5 billion community bank and a top 20 credit union to its list of recently acquired customers. --Four customers licensed a Corillian payment warehouse solution, including First Tennessee This article or section has multiple issues: * Its neutrality is disputed. * It reads like an advertisement and needs to be rewritten in a neutral point of view. * It may require general cleanup to meet Wikipedia's quality standards. Bank, a top 50 U.S. bank which decided to upgrade to the latest version of the Corillian Interpose in·ter·pose v. in·ter·posed, in·ter·pos·ing, in·ter·pos·es v.tr. 1. a. To insert or introduce between parts. b. To place (oneself) between others or things. 2. Payments application to help expand its online bill payment services. The Corillian Interpose Payments application was integrated into Corillian's suite of products after the acquisition of InteliData in August 2005. --Corillian and Getronics Getronics N.V. (Euronext: GTN) is a largely Dutch-based Information and Communication Technology (ICT) Company whose stated focus is on creating value for business through Workspace Management Services and Application Services. , a global leader in workspace management IT services, signed a multi-year reseller An organization that sells hardware and software to the general public. Resellers purchase products from software publishers and hardware manufacturers. and systems integration agreement to deliver comprehensive online financial services to financial institutions worldwide. Getronics 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. and implement Corillian's 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 and online banking applications as its preferred offering for financial institutions looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. a comprehensive, next-generation online solution. --Corillian signed six more deals for its Corillian Intelligent Authentication (1) Verifying the integrity of a transmitted message. See message integrity, e-mail authentication and MAC. (2) Verifying the identity of a user logging into a network. (TM) product during the first quarter. Since its release in October of 2005, 20 leading financial institutions have selected Corillian's Intelligent Authentication as the solution of choice to deliver strong, FFIEC-compliant online authentication services to their online banking users. --Corillian announced results of new performance and scalability tests for its enterprise authentication security product, Corillian Intelligent Authentication(TM). In recent tests, Corillian Intelligent Authentication processed nearly 400 authentication transactions per second In a very generic sense, the term Transactions Per Second refers to the number of atomic actions performed by certain entity per second. In a more restrictied view, the term is usually used by DBMS vendor and user community to refer to the number of database transactions performed , or approximately 34.5 million authentications a day -- well beyond other industry solutions. --Corillian and StrikeForce partnered to protect financial institutions' online users with a comprehensive authentication service combining Corillian's Intelligent Authentication(TM) with StrikeForce's "Out-of-Band" authentication platform, ProtectID(TM). The joint offering helps to proactively detect fraudulent The description of a willful act commenced with the Specific Intent to deceive or cheat, in order to cause some financial detriment to another and to engender personal financial gain. online activity and prevent illegitimate ILLEGITIMATE. That which is contrary to law; it is usually applied to children born out of lawful wedlock. A bastard is sometimes called an illegitimate child. users from accessing accounts. --Corillian announced the availability of Corillian Personal Money Manager (PMM PMM Purchase Money Mortgage PMM Project Management Methodology PMM Perpetual Motion Machine PMM Permanent Magnet Motor PMM Professional Murder Music (band) PMM Precision Measuring Machine PMM Power Management Mode ), a next-generation online banking application that allows financial institutions to provide consumers with enhanced access to rich transactional information and extended account history data that is available 24x7x365 from the convenience of the financial institution's online banking site, even if the bank's core systems are unavailable. A top 50 U.S. financial institution recently converted to Corillian Consumer Banking, including a new online service leveraging Corillian PMM. Financial Outlook Corillian will continue to invest in the people, processes, and technologies required to enhance the long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. profitability of its business model. The near-term impact of these investments will be delayed improvement in revenue and earnings growth, primarily due to the long term nature of some of the 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. revenue deals that it is currently pursuing. The company anticipates that second quarter 2006 revenues will be in the range of $13.5 to $15.5 million and GAAP 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 range from a diluted net loss per share of ($0.03) to ($0.05), 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 potential deals in our sales pipeline. Pro forma results, excluding the amortization of intangible assets related to acquisitions and stock-based compensation expense, are expected to range from a diluted net loss per share of ($0.01) to ($0.03). Included in its GAAP diluted per share guidance for the second quarter of 2006, Corillian anticipates approximately $600,000 of stock-based compensation expense in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with FAS 123R and the amortization of approximately $400,000 of acquisition-related intangible assets. Reconciliation of GAAP results to Pro Forma Results Corillian provides pro forma operating results as a supplement to its GAAP financial results. Corillian believes that pro forma results provide investors and management with a representation of Corillian's core operating performance that can be helpful in assessing future growth. Corillian's pro forma results exclude the following charges and benefits, net of any related tax impact, from Corillian's statements of operations when applicable: --Stock-based compensation --Amortization of intangible assets --Restructuring-related charges --Merger-related charges --Impairment charges related to acquisition-related intangible assets A detailed calculation of pro forma net income and pro forma net income per share is included in the attached reconciliation of GAAP net income (loss) to pro forma net income. The GAAP net income (loss) and pro forma net income per share are included in the attached condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. consolidated statement of operations See Income statement. . Corillian will hold a conference call at 5:00 p.m. ET on April 27, 2006, 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://www.corillian.com/investors. About Corillian Corporation Corillian is the market leader of online banking, bill payment and fraud prevention applications to the financial services industry. With 28 of the top 100 U.S. banks and 20 of the top 100 U.S. credit unions as customers, Corillian serves over 25 percent of the online banking community. Corillian provides the most flexible, scalable and secure set of online banking applications across multiple lines of business, integrating best-practice functionality developed for some of the most innovative financial institutions in the world. Corillian features integrated applications across Consumer Banking, Small Business Banking, Wealth Management, Credit Card Management, and Corporate Cash Management, as well as enterprise wide solutions, including Fraud Detection, Payments Warehouse, Alerts, eStatements, and OFX OFX Open Financial Exchange OFX Outer Fix OFX Open Effects . Corillian's fraud prevention solutions use Preemptive pre·emp·tive or pre-emp·tive adj. 1. Of, relating to, or characteristic of preemption. 2. Having or granted by the right of preemption. 3. a. Forensics See computer forensics. (TM) to protect web sites from phishers, hackers, and fraudsters. Corillian's strong authentication solution provides a low-cost solution for multi-factor authentication while maintaining high user satisfaction. Empowered by 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 and securely. 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. 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'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 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, that financial institutions are affected by adverse government regulations or market condition and that Corillian's estimate of stock-based compensation expense changes as a result of final implementation of FAS 123R. 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 31, 2005.
CORILLIAN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
For the Quarter Ended
-----------------------
March 31, March 31,
2006 2005
---------- ----------
Revenues $ 14,273 $ 11,236
Cost of revenues 6,967 4,359
---------- ----------
Gross profit 7,306 6,877
---------- ----------
Operating expenses:
Sales and marketing 2,313 1,770
Research and development 3,570 2,622
General and administrative 2,642 1,913
---------- ----------
Total operating expenses 8,525 6,305
---------- ----------
(Loss) income from operations (1,219) 572
Other income, net 268 95
---------- ----------
(Loss) income before income taxes (951) 667
Income taxes 20 13
---------- ----------
Net (loss) income $ (971) $ 654
========== ==========
Basic net (loss) income per share $ (0.02) $ 0.02
Diluted net (loss) income per share $ (0.02) $ 0.02
Shares used in computing basic net (loss)
income per share 44,801 38,717
Shares used in computing diluted net (loss)
income per share 44,801 40,195
RECONCILIATION OF GAAP NET (LOSS) INCOME TO
PRO FORMA NET INCOME (1)
GAAP net (loss) income $ (971) $ 654
Amortization of acquisition-related
intangibles included in cost of revenues 379 -
Amortization of acquisition-related
intangibles included in sales and marketing 44 -
Employee related stock-based compensation
included in cost of revenues 114 -
Employee related stock-based compensation
included in operating expenses 449 -
---------- ----------
Pro forma net income $ 15 $ 654
========== ==========
Diluted pro forma net income per share $ 0.00 $ 0.02
========== ==========
Shares used in computing diluted pro forma net
income per share 45,531 40,195
========== ==========
(1) See explanation above regarding the Company's practice on
reporting pro forma results.
CORILLIAN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
March 31, Dec. 31,
2006 2005
----------- -----------
ASSETS
Current assets:
Cash and investments $ 24,603 $ 25,522
Accounts receivable, net 5,886 12,063
Revenue in excess of billing 3,944 2,387
Other current assets 3,776 3,307
----------- -----------
Total current assets 38,209 43,279
Property and equipment, net 3,501 3,548
Goodwill 26,899 26,899
Intangibles, net 3,433 3,856
Other assets 1,501 1,757
----------- -----------
Total assets $ 73,543 $ 79,339
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
liabilities $ 4,482 $ 6,261
Deferred revenue 12,275 15,522
Current portion of long-term debt and
capital lease obligations - 3
Other current liabilities 1,307 1,882
----------- -----------
Total current liabilities 18,064 23,668
Other long-term liabilities 779 938
----------- -----------
Total liabilities 18,843 24,606
----------- -----------
Shareholders' equity:
Common stock 150,385 149,447
Accumulated other comprehensive income 61 61
Accumulated deficit (95,746) (94,775)
----------- -----------
Total shareholders' equity 54,700 54,733
----------- -----------
Total liabilities and shareholders'
equity $ 73,543 $ 79,339
=========== ===========
CORILLIAN CORPORATION SUPPLEMENTAL INFORMATION (unaudited) License revenues for the first quarter of 2006 were $3.0 million, or 21% of total revenue, as compared to $2.8 million, or 25% of total revenues in the first quarter of 2005. License block sales in the first quarter of 2006 were approximately $483,000, as compared to approximately $560,000 for the first quarter of 2005. Corillian's revenue backlog was $47.8 million as of March 31, 2006, compared to $43.0 million as of December 31, 2005. Revenue backlog represents contractual customer commitments, including fees for licenses, professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. , maintenance, hosting and subscriptions. Corillian expects $30.3 million of its backlog as of March 31, 2006 to be recognized as revenue over the next 12 months. In its March 31, 2006 backlog amount, Corillian recorded $1.6 million related to estimated usage-based revenues from contracts acquired in the InteliData acquisition, all of which is expected to be recognized as revenue over the next 12 months. Corillian previously excluded these amounts from backlog as it did not have enough history with these contracts to reliably estimate future usage-based revenues over the remaining contractual period. 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 and Corillian's customers' meeting anticipated schedules for customer-dependent deliverables. 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, 2006 was 312, compared with 223 as of March 31, 2005. The actual total number of shares outstanding as of March 31, 2006 was 44.9 million shares. |
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