Corillian Reports Fourth Quarter and Year-end 2002 Results.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)--Feb. 5, 2003 Corillian Reports First 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 Positive Quarter In Company History and Beats Consensus 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. Estimate by $0.02 Per Share 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 fourth quarter and for the year ended December December: see month. 31, 2002, and announced its first adjusted EBITDA positive quarter ever. Revenues for the fourth quarter were $10.1 million, compared to $10.0 million for the third quarter of 2002 and $9.9 million for the fourth quarter of 2001. 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 loss for the fourth quarter was $1.3 million, resulting in a pro forma net loss per share of $0.04 on 36.0 million weighted shares outstanding. The consensus estimate reported by First Call was a $0.06 loss per share. The pro forma net loss per share for the comparable prior year period was $0.17 on 34.9 million weighted shares outstanding. Adjusted EBITDA for the quarter was approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $300,000. Adjusted EBITDA loss for the comparable prior year period was $4.5 million. Net loss for the quarter was $1.5 million, resulting in a net loss per share of $0.04 on 36.0 million weighted shares outstanding. The net loss per share for the comparable prior year period was $0.71 on 34.9 million weighted shares outstanding. Cash and investment balances at the end of the fourth quarter were $17.6 million, compared to $14.1 million at the end of the third quarter of 2002 and $17.7 million at the end of 2001. "We have clearly turned the corner in our path to profitability," 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. 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. . These results are a testament to the quality of our people and products and the vision of our customers, who are increasing their investments in 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 to deliver a consistent, high-quality user experience across multiple channels and lines of business." Revenue for 2002 was $39.1 million, compared to $53.8 million for 2001. Pro forma net loss for 2002 was $13.1 million, resulting in a pro forma net loss per share of $0.37 on 35.5 million weighted shares outstanding. Comparable pro forma net loss for 2001 was $22.6 million, or $0.65 per share on 34.6 million weighted shares outstanding. Net loss for 2002 was $17.3 million, resulting in a net loss per share of $0.49 on 35.5 million weighted shares outstanding. Comparable net loss for 2001 was $49.3 million, or $1.42 per share on 34.6 million weighted shares outstanding. "Revenue for our core domestic operations in 2002 was essentially flat compared to 2001. The overall revenue decline in 2002 was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to a decrease in work performed for third parties by Corillian Services, Inc. (formerly Hatcher hatch 1 n. 1. a. An opening, as in the deck of a ship, in the roof or floor of a building, or in an aircraft. b. The cover for such an opening. c. A hatchway. d. Associates) and reduced sales from our international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. ," said Steve v. t. 1. To pack or stow, as cargo in a ship's hold. See Steeve. Sipowicz, chief financial officer. "We have sized the company appropriately. We have reduced our international and Corillian Services expenses significantly and will only pursue international opportunities through partnerships in select markets." An explanation of Corillian's practice of reporting pro forma and adjusted EBITDA results is described below. A table detailing the differences between Corillian's reported net loss, pro forma results 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 attached to this release. Recent Highlights -- NetBank, the largest Internet bank, with more than 150,000 online customers, licensed the Corillian Voyager platform. -- Seven of Corillian's customers are now live on the Corillian Voyager 3.0 platform and many others are in the process of upgrading to Corillian Voyager 3.0. -- Corillian signed a strategic agreement with Epicor Corporation to deliver an integrated call center solution built on the Corillian Voyager platform. -- As of the end of the fourth quarter, there were more than nine million end users on Corillian Voyager platforms, compared to approximately 8.2 million at the end of the third quarter of 2002 and 5.3 million end users as of December 31, 2001. Financial Outlook Based on our current backlog of projects in implementation and sales pipeline, we anticipate that first quarter 2003 revenue will be flat, as compared to fourth quarter 2002 revenue, and that revenue for 2003 will be at least 10 to 15 percent higher than revenue for 2002. We continue to expect to be adjusted EBITDA positive throughout 2003. Pro Forma Results Pro forma results, which generally measure operating profitability by excluding certain non-cash and unusual items, are provided as a complement to Corillian's 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). ). Adjusted EBITDA results, which generally measure operating cash earnings by excluding interest, taxes, depreciation, amortization and unusual items, are provided as a complement to Corillian's reported net loss. A table detailing the differences between Corillian's reported net loss under GAAP, pro forma results and adjusted EBITDA is included in the consolidated statements of operations below. Corillian measures the progress of its business using pro forma operating results, which exclude the following items from its consolidated statements of operations: -- Amortization of deferred stock-based compensation, goodwill and other 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. ; -- Restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. ; -- Merger-related charges; -- Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. settlement charges; and -- Impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charges related to acquisition-related intangible assets. Corillian also measures the progress of its business using adjusted EBITDA results, which exclude non-cash and unusual items as follows: -- Other income (expense), net; -- Depreciation and amortization; -- Restructuring charges; -- Merger-related charges; -- Litigation settlement charges; and -- Impairment charges related to acquisition-related intangible assets. 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. 5, 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. More than nine million people, over 25 percent of America's online banking population, manage their finances using Corillian software. 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 and Corillian-certified partners. 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 Internet banking software 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 faces pricing pressure in winning new deals or fails to sign new customers, that Corillian raises additional financing on burdensome terms or conditions or is unable to raise additional financing at all, if necessary, 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 mix of license and maintenance revenues, that Corillian encounters significant problems in installing its software at its existing customers, that Corillian incurs significant legal expenses or losses in lawsuits against Corillian and that financial institutions do not continue to demand Internet banking solutions or 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 three-month period ended September September: see month. 30, 2002.
CORILLIAN CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
For the Quarter Ended
------------ ------------- -------------
December 31, September 30, December 31,
2002 2002 2001
------------ ------------- -------------
Revenue $10,059 $10,038 $ 9,914
Cost of revenue 4,950 5,054 5,745
------------ ------------- -------------
Gross profit 5,109 4,984 4,169
------------ ------------- -------------
Operating expenses:
Sales and marketing 2,432 2,820 4,056
Research and development 1,695 1,712 2,364
General and
administrative 2,042 2,901 3,459
Amortization of deferred
stock-based compensation 140 189 473
Litigation settlement
charges - 2,580 -
Restructuring and
impairment charges - - 18,097
------------ ------------- -------------
Total operating
expenses 6,309 10,202 28,449
------------ ------------- -------------
Loss from operations (1,200) (5,218) (24,280)
Other expense, net (266) (421) (396)
------------ ------------- -------------
Net loss $(1,466) $(5,639) $(24,676)
============ ============= =============
Basic and diluted net loss
per share $ (0.04) $ (0.16) $ (0.71)
Pro forma basic and
diluted net loss per
share $ (0.04) $ (0.08) $ (0.17)
Shares used in computing basic
and diluted net loss per
share and pro forma basic and
diluted net loss per share 35,996 35,469 34,927
Net loss per GAAP $(1,466) $(5,639) $(24,676)
Amortization of deferred
stock-based compensation 140 189 473
Litigation settlement
charges - 2,580 -
Restructuring and
impairment charges - - 18,097
------------ ------------- -------------
Pro forma net loss (1,326) (2,870) (6,106)
Other expense, net 266 421 396
Depreciation and
amortization 1,361 1,467 1,254
------------ ------------- -------------
Adjusted EBITDA $ 301 $ (982) $ (4,456)
============ ============= =============
CORILLIAN CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
For the Year Ended
------------- -------------
December 31, December 31,
2002 2001
------------- -------------
Revenue $ 39,141 $ 53,848
Cost of revenue 20,422 30,357
------------- -------------
Gross profit 18,719 23,491
------------- -------------
Operating expenses:
Sales and marketing 11,720 20,096
Research and development 7,733 11,721
General and administrative 11,029 13,950
Amortization of goodwill and other
intangible assets - 6,119
Amortization of deferred stock-based
compensation 885 2,506
Litigation settlement charges 2,580 -
Restructuring and impairment charges 682 18,097
------------- -------------
Total operating expenses 34,629 72,489
------------- -------------
Loss from operations (15,910) (48,998)
Other income (expense), net (1,347) (303)
------------- -------------
Net loss $(17,257) $(49,301)
============= =============
Basic and diluted net loss per share $ (0.49) $ (1.42)
Pro forma basic and diluted net loss per
share $ (0.37) $ (0.65)
Shares used in computing basic and diluted
net loss per share and pro forma basic and
diluted net loss per share 35,477 34,645
Net loss $(17,257) $(49,301)
Amortization of goodwill and other
intangible assets - 6,119
Amortization of deferred stock-based
compensation 885 2,506
Litigation settlement charges 2,580 -
Restructuring and impairment charges 682 18,097
------------- -------------
Pro forma net loss (13,110) (22,579)
Other expense, net 1,347 303
Depreciation and amortization 5,431 4,666
------------- -------------
Adjusted EBITDA $ (6,332) $(17,610)
============= =============
CORILLIAN CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
---------------- ----------------
December 31, December 31,
2002 2001
---------------- ----------------
ASSETS
Current assets:
Cash and investments $ 17,631 $ 17,703
Restricted cash 1,003 -
Accounts receivable 3,987 9,427
Revenue in excess of billing 1,542 6,410
Other current assets 3,276 1,429
---------------- ----------------
Total current assets 27,439 34,969
Property and equipment, net 8,376 12,995
Other assets 1,664 2,279
---------------- ----------------
Total assets $ 37,479 $ 50,243
================ ================
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities:
Accounts payable and accrued
liabilities $ 3,868 $ 5,133
Deferred revenue 13,981 8,881
Current portion of long-term debt
and capital lease obligations 2,245 2,599
Other current liabilities 1,421 597
---------------- ----------------
Total current liabilities 21,515 17,210
Long-term debt and capital lease
obligations, less current portion 1,600 3,730
Other long-term liabilities 1,243 1,199
---------------- ----------------
Total liabilities 24,358 22,139
---------------- ----------------
Shareholders' equity:
Common stock 126,141 125,069
Deferred stock-based compensation (35) (1,169)
Unrealized translation
gain/(loss) 49 (19)
Accumulated deficit (113,034) (95,777)
---------------- ----------------
Total shareholders' equity 13,121 28,104
---------------- ----------------
Total liabilities and
shareholders' equity $ 37,479 $ 50,243
================ ================
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