Corillian Reports Fourth Quarter and Year-End 2004 Results; Corillian Has Record Earnings Year with over 100 Percent Growth in Net Income.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 solutions to leading financial institutions, today reported financial results for the fourth quarter and year ended December December: see month. 31, 2004. Revenues for 2004 were $50.8 million, compared to $46.1 million for 2003, an increase of 10 percent. Net income for 2004 was $10.5 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 $0.26. This compares to net income of $5.1 million in 2003, resulting in diluted earnings per share of $0.14, a growth in earnings per share of 86 percent. Revenues for the fourth quarter were $13.2 million, compared to $12.2 million for the fourth quarter of 2003, a growth rate of 8 percent. Net income for the quarter was $3.3 million, resulting in diluted earnings per share of $0.08, compared to net income for the comparable prior year period of $2.1 million, which resulted in diluted earnings per share of $0.05 for the fourth quarter of 2003. Cash and investment balances at the end of the fourth quarter were $39.4 million, compared to $26.8 million at the end of 2003, an increase of over 40 percent. "I am pleased with our progress in 2004," 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. Wachovia Corporation (NYSE: WB), based in Charlotte, North Carolina, is the third largest banking chain in the United States based on total deposits. , the nation's fourth largest bank, and expanded our relationships with a number of existing customers. We also launched the Corillian Fraud Detection System and saw great traction Traction Definition 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 the adoption of this industry-leading fraud prevention solution. I was, however, disappointed with the number of new customer relationships we signed in the second half of 2004. As a result, I have changed our sales approach so that I can get more personally involved in the sales process A sales process is a systematic approach for performing product or service sales. The reasons for having a sales process include seller and buyer risk management, achieving standardized customer interaction in sales and scalable revenue generation. and broaden our sales coverage to take advantage of the new opportunities that our expanded product capabilities are generating. I am confident that this change will enable us to build on the success of 2004 and generate better sales results in 2005." 2004 Highlights --Wachovia, the fourth largest bank in the U.S., selected 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. and Corillian Consumer Banking as the foundation for its next-generation online banking solution. --Four top 100 U.S. banks and two top 100 U.S. credit unions licensed Corillian's new applications for Consumer, Small Business and Corporate Banking. --In the fourth quarter, Corillian launched a new version of its Consumer Banking application, incorporating hundreds of best practices in functionality and usability How easy something is to use. Both software and Web sites can be tested for usability. Considering how difficult applications are to use and Web sites are to navigate, one would wish that more designers took this seriously. See user interface and usability lab. from leading financial institutions and industry experts. Three financial institutions have signed up for this new application, including two top 100 U.S. banks and one top 10 U.S. credit union. --In the fourth quarter, Corillian launched the first version of Corillian Corporate Banking to seamlessly deliver integrated, real-time 1. real-time - Describes an application which requires a program to respond to stimuli within some small upper limit of response time (typically milli- or microseconds). Process control at a chemical plant is the classic example. corporate banking services within a highly user-friendly user-friendly - Programmer-hostile. Generally used by hackers in a critical tone, to describe systems that hold the user's hand so obsessively that they make it painful for the more experienced and knowledgeable to get any work done. experience. IBC IBC International Building Code IBC Iraq Body Count IBC Institutional Biosafety Committee IBC Inflammatory Breast Cancer IBC International Business Company IBC Independence Blue Cross IBC Insurance Bureau of Canada IBC International Broadcasting Convention Bank, a top 100 U.S. bank, selected Corillian Corporate Banking as its next-generation online solution. --Two customers went live on Corillian Small Business Banking during 2004, a top 10 U.S. bank and a top 10 U.S. credit union. Currently, eight customers are live on Corillian Small Business Banking with three more customers in implementation, including two top 100 U.S. banks. --In July July: see month. 2004, Corillian launched the Corillian Fraud Detection System, the industry's first and only pre-emptive 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. forensic Belonging to courts of justice. forensic 1) adj. from Latin forensis for "belonging to the forum," ancient Rome's site for public debate, and currently meaning pertaining to the courts. solution for proactively combating phishing Pronounced "fishing," it is a scam to steal valuable information such as credit card and social security numbers, user IDs and passwords. Also known as "brand spoofing," an official-looking e-mail is sent to potential victims pretending to be from their ISP, bank or retail establishment. , online fraud and identity theft. Currently, 20 financial institutions have purchased the Corillian Fraud Detection System, including two top 10 U.S. banks. --In 2004, the Corillian - 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 partnership signed 15 new customers, including 13 new shared server customers. --Corillian announced its participation in the Anti-Fraud Alliance, the online industry's first end-to-end end-to-end a pattern of anastomosis in which severed ends are matched and united, in contrast with other patterns such as end-to-side or side-to-side. Usually applied to anastomosis of the intestine. anti-fraud and online identity theft solution network. Other alliance participants include: Symantec (Symantec Corporation, Cupertino, CA, www.symantec.com) A software company founded in 1982 by Dr. Gary Hendrix. It was acquired by Gordon Eubanks in 1984 and released its Q&A file manager the following year. In 1990, it merged with Peter Norton Computing, Inc. , PassMark Security, NameProtect and 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 Identity. 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 potential deals in our sales pipeline, Corillian anticipates that first quarter 2005 revenues will be in the range of $11 to $12 million and that 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 $0.02 to $0.04 per fully 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. share. Corillian anticipates that revenue and operating results for the second half of 2005 will be stronger than anticipated results for the first half. 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 February February: see month. 9, 2005 to discuss the quarterly results and business outlook. Investors and other interested parties can listen to the conference call over the Internet at Corillian's corporate Web site at http://investor.corillian.com. About Corillian Corporation Corillian is the top provider of online banking and fraud prevention applications to leading financial institutions. Corillian provides the most flexible, scalable and secure set of online banking applications across multiple lines of business, integrating hundreds of best practices observed ob·serve v. ob·served, ob·serv·ing, ob·serves v.tr. 1. To be or become aware of, especially through careful and directed attention; notice. 2. from some of the most innovative financial institutions in the world, as well as best practices in usability and functionality established by industry experts. Corillian features integrated applications across Consumer Banking, Small Business Banking, Wealth Management, Credit Card Management, and 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 . 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 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 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'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 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-Q Form 10-Q See 10-Q. for the quarter ended September September: see month. 30, 2004.
CORILLIAN CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
For the Quarter Ended
------------ ------------
December 31, December 31,
2004 2003
------------ ------------
Revenues $13,151 $12,216
Cost of revenues 4,155 5,413
------------ ------------
Gross profit 8,996 6,803
------------ ------------
Operating expenses:
Sales and marketing 1,933 1,651
Research and development 2,071 1,201
General and administrative 1,627 1,567
------------ ------------
Total operating expenses 5,631 4,419
------------ ------------
Income from operations 3,365 2,384
Other income (expense), net (39) (236)
------------ ------------
Income before income taxes 3,326 2,148
Income taxes 50 24
------------ ------------
Net income $ 3,276 $ 2,124
============ ============
Basic net income per share $ 0.09 $ 0.06
Diluted net income per share $ 0.08 $ 0.05
Shares used in computing basic net income
per share 38,295 36,728
Shares used in computing diluted net income
per share 40,827 40,278
CORILLIAN CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
For the Year Ended
------------ ------------
December 31, December 31,
2004 2003
------------ ------------
Revenues $50,794 $46,132
Cost of revenues 18,449 20,501
------------ ------------
Gross profit 32,345 25,631
------------ ------------
Operating expenses:
Sales and marketing 7,291 6,422
Research and development 6,690 5,968
General and administrative 6,688 6,810
Amortization deferred stock-based compensation - 35
Impairment charge 491 -
------------ ------------
Total operating expenses 21,160 19,235
------------ ------------
Income from operations 11,185 6,396
Other income (expense), net (545) (1,146)
------------ ------------
Income before income taxes 10,640 5,250
Income taxes 160 124
------------ ------------
Net income $10,480 $ 5,126
============ ============
Basic net income per share $ 0.28 $ 0.14
Diluted net income per share $ 0.26 $ 0.14
Shares used in computing basic net income
per share 37,727 36,431
Shares used in computing diluted net income
per share 40,474 37,813
CORILLIAN CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
---------------- -----------------
December December
31, 31,
2004 2003
---------------- -----------------
ASSETS
Current assets:
Cash and investments $ 39,350 $ 26,844
Accounts receivable, net 8,218 6,103
Revenue in excess of billing 1,363 1,258
Other current assets 1,902 1,545
---------------- -----------------
Total current assets 50,833 35,750
Property and equipment, net 3,800 5,765
Other assets 636 1,303
---------------- -----------------
Total assets $ 55,269 $ 42,818
================ =================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
liabilities $ 3,447 $ 3,276
Deferred revenue 16,630 15,560
Current portion of long-term debt
and capital lease obligations 296 1,529
Other current liabilities 1,043 968
---------------- -----------------
Total current liabilities 21,416 21,333
Long-term debt and capital lease
obligations, less current portion 629 1,075
Other long-term liabilities 622 856
---------------- -----------------
Total
liabilities 22,667 23,264
---------------- -----------------
Shareholders' equity:
Common stock 129,969 127,414
Accumulated other comprehensive
income 61 48
Accumulated deficit (97,428) (107,908)
---------------- -----------------
Total shareholders' equity 32,602 19,554
---------------- -----------------
Total
liabilities
and
shareholders'
equity $ 55,269 $ 42,818
================ =================
CORILLIAN CORPORATION
SUPPLEMENTAL INFORMATION
(unaudited)
Full year 2004 license revenues were $20.9 million, or 41% of
total revenue, as compared to $17.0 million, or 37% of total revenue,
in 2003. License block sales in 2004 were $5.1 million, as compared to
$6.1 million in 2003.
License revenues for the fourth quarter of 2004 were $5.0 million,
or 38% of total revenues, as compared to $4.9 million, or 40% of total
revenues, in the fourth quarter of 2003. License block sales in the
fourth quarter of 2004 were approximately $2.9 million, as compared to
approximately $1.9 million in license block sales in the fourth
quarter of 2003.
Corillian's revenue backlog was $32.4 million as of December 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 December 31, 2004 was 224, compared with 227
as of December 31, 2003.
The actual total number of shares outstanding as of December 31,
2004 was 38.4 million shares.
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion