Corillian Reports Fourth Quarter and Year-end 2003 Results; Revenues Grew 18 Percent Year over Year, Generating $0.14 EPS.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. 3, 2004 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, 2003. Revenues for 2003 were $46.1 million, compared to $39.1 million for 2002, an increase of 18 percent. Net income for 2003 was $5.1 million, resulting in basic and 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 $0.14. This compares to a net loss of ($17.3 million) in 2002, resulting in a basic and 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 ($0.49). 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 2003 was $10.1 million, compared to an adjusted EBITDA loss of ($6.3 million) in 2002. An explanation of Corillian's practice of reporting adjusted EBITDA results is described below. Revenues for the fourth quarter were $12.2 million, compared to $10.1 million for the fourth quarter of 2002, a growth rate of over 21 percent. Net income for the quarter was $2.1 million, resulting in basic earnings per share of $0.06 and diluted earnings per share of $0.05, compared to a net loss for the comparable prior year period of ($1.5 million), which resulted in a basic and diluted net loss per share of ($0.04) for the fourth quarter of 2002. Adjusted EBITDA for the quarter was $3.2 million, compared to adjusted EBITDA of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $300,000 for the comparable prior year period. Cash and investment balances at the end of the fourth quarter were $26.8 million, compared to $17.6 million at the end of 2002, an increase of over 50 percent. "2003 was a record-setting year for Corillian, as we achieved profitability, increased earnings and cash and experienced tremendous end-user (job) end-user - The person who uses a computer application, as opposed to those who developed or support it. The end-user may or may not know anything about computers, how they work, or what to do if something goes wrong. growth within our customer base," 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. Please [ improve this article] or discuss the issue on the talk page. is just beginning, and Corillian is well-positioned to provide the functionality, scalability How much a system can be expanded. See scalable. scalability - How well a solution to some problem will work when the size of the problem increases. For example, a central server of some kind with ten clients may perform adequately but with a thousand clients it , security and performance that financial institutions need to lead the revolution." 2003 Highlights -- End user adoption for Corillian customers continued to grow during 2003, with an increase of over 50 percent from 9.1 million end users at the end of 2002 to 14.0 million at the end of 2003. -- The increasing adoption of 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. 3.0 continued with 14 customers migrating to the industry-leading platform during 2003, bringing the total to 16 customers on the 3.0 platform. -- Four customers went live on Corillian Small Business Banking during 2003: a top 10 bank, NetBank This article is about the United States bank with the name NetBank. For the online service of Commonwealth Bank, see Commonwealth Bank. NetBank, originally called Net. , Sterling Financial and Bank of Stockton Stockton, city (1990 pop. 210,943), seat of San Joaquin co., central Calif., on the San Joaquin River; inc. 1850. One of the fastest-growing U.S. cities during the late 20th cent., Stockton is an inland seaport located at the head of the San Joaquin delta. . -- Corillian increased its market share within the top 50 U.S. banks with the signing of Charter One Bank. Charter One is widely recognized as one of the most innovative and forward-thinking financial institutions in its use of the online channel. -- Corillian strengthened its management team with the appointments of a new chief financial officer, senior vice president of sales and vice president of marketing. -- Corillian signed strategic partnership agreements with 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 , CashEdge, Centerpost and Hipbone hip·bone n. Either of two large flat bones formed by the fusion of ilium, ischium, and pubis, constituting the lateral half of the pelvis and articulating with its fellow, with the sacrum, and with the femur. . 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. , anticipated project schedules and sales pipeline, Corillian anticipates that first quarter 2004 revenues will be in the range of $11.0 to $12.0 million. Based on these revenue expectations and currently anticipated expenses, Corillian anticipates 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 $0.05 per share for the first quarter of 2004. Adjusted EBITDA Results Adjusted EBITDA results exclude interest, taxes, depreciation, amortization, 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, restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). 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, losses on equity investments and other income (expense), net, and are provided by Corillian as a complement to reported net income (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 income (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 February February: see month. 3, 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'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, 2003.
CORILLIAN CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
For the Quarter Ended
-------------------------------
December 31, December 31,
2003 2002
-------------- --------------
Revenues $ 12,216 $ 10,059
Cost of revenues 5,413 4,951
-------------- --------------
Gross profit 6,803 5,108
-------------- --------------
Operating expenses:
Sales and marketing 1,651 2,432
Research and development 1,201 1,695
General and administrative 1,567 2,042
Amortization of deferred stock-based
compensation - 140
-------------- --------------
Total operating expenses 4,419 6,309
-------------- --------------
Income (loss) from operations 2,384 (1,201)
Other income (expense), net (236) (264)
-------------- --------------
Income (loss) before income taxes 2,148 (1,465)
Income taxes 24 -
-------------- --------------
Net income (loss) $ 2,124 $ (1,465)
============== ==============
Basic net income (loss) per share $ 0.06 $ (0.04)
Diluted net income (loss) per share $ 0.05 $ (0.04)
Shares used in computing basic net
income (loss) per share 36,728 35,996
Shares used in computing diluted net
income (loss) per share 40,278 35,996
Net income (loss) per GAAP $ 2,124 $ (1,465)
Amortization of deferred stock-based
compensation - 140
Equity in losses of Synoran (formerly
e-Banc LLC) 248 173
Other (income) expense, net
(excluding equity in losses of
Synoran) (12) 91
Income taxes 24 -
Depreciation and amortization 783 1,361
-------------- --------------
Adjusted EBITDA $ 3,167 $ 300
============== ==============
CORILLIAN CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
For the Year Ended
-------------------------------
December 31, December 31,
2003 2002
--------------- -------------
Revenues $ 46,132 $ 39,141
Cost of revenues 20,501 20,422
--------------- -------------
Gross profit 25,631 18,719
--------------- -------------
Operating expenses:
Sales and marketing 6,422 11,720
Research and development 5,968 7,733
General and administrative 6,810 11,029
Amortization of deferred stock-based
compensation 35 885
Litigation settlement charges - 2,580
Restructuring and impairment charges - 682
--------------- -------------
Total operating expenses 19,235 34,629
--------------- -------------
Income (loss) from operations 6,396 (15,910)
Other income (expense), net (1,146) (1,347)
--------------- -------------
Income (loss) before income taxes 5,250 (17,257)
Income taxes 124 -
--------------- -------------
Net income (loss) $ 5,126 $ (17,257)
=============== =============
Basic net income (loss) per share $ 0.14 $ (0.49)
Diluted net income (loss) per share $ 0.14 $ (0.49)
Shares used in computing basic net
income (loss) per share 36,431 35,477
Shares used in computing diluted net
income (loss) per share 37,813 35,477
Net income (loss) per GAAP $ 5,126 $ (17,257)
Amortization of deferred stock-based
compensation 35 885
Litigation settlement charges - 2,580
Restructuring and impairment charges - 682
Equity in losses of Synoran
(formerly e-Banc LLC) 1,133 916
Other (income) expense, net (excluding
equity in losses of Synoran) 13 431
Income taxes 124 -
Depreciation and amortization 3,715 5,431
--------------- -------------
Adjusted EBITDA $ 10,146 $ (6,332)
=============== =============
CORILLIAN CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
December 31, December 31,
2003 2002
------------ ------------
ASSETS
Current assets:
Cash and investments $ 26,844 $ 17,631
Restricted cash - 1,003
Accounts receivable, net 6,103 3,987
Revenue in excess of billing 1,258 1,542
Other current assets 1,545 3,276
------------ ------------
Total current assets 35,750 27,439
Property and equipment, net 5,765 8,376
Other assets 1,303 1,664
------------ ------------
Total assets $ 42,818 $ 37,479
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 3,276 $ 3,868
Deferred revenue 15,560 13,981
Current portion of long-term debt and
capital lease obligations 1,529 2,245
Other current liabilities 968 1,421
------------ ------------
Total current liabilities 21,333 21,515
Long-term debt and capital lease
obligations, less current portion 1,075 1,600
Other long-term liabilities 856 1,243
------------ ------------
Total liabilities 23,264 24,358
------------ ------------
Shareholders' equity:
Common stock 127,414 126,141
Deferred stock-based compensation - (35)
Unrealized translation gain 48 49
Accumulated deficit (107,908) (113,034)
------------ ------------
Total shareholders' equity 19,554 13,121
------------ ------------
Total liabilities and shareholders'
equity $ 42,818 $ 37,479
============ ============
CORILLIAN CORPORATION
SUPPLEMENTAL INFORMATION
(unaudited)
December 31, December 31,
2003 2002
------------- --------------
Revenue backlog(1) $37.2 million $38.1 million
Live end users 14.0 million 9.1 million
Estimated DDA penetration rate(2) 18% 14%
Headcount 227 246
Full year 2003 license revenues were $17.0 million, or 37% of total revenue, as compared to $10.5 million, or 27% of total revenue, in 2002. License block sales in 2003 were $6.1 million, as compared to $4.3 million in 2002. Fourth quarter 2003 license revenues were $4.9 million, or 40% of total revenue, as compared to fourth quarter 2002 license revenues of $2.3 million, or 23% of total revenue. License block sales in the fourth quarter of 2003 were $1.9 million, as compared to approximately $736,000 in license block sales in the fourth quarter of 2002. Corillian generated $11.3 million in cash from operations during 2003 and $3.1 million during the fourth quarter of 2003. During 2003, certain Corillian research and development personnel provided services for Corillian's customers, which resulted in the reclassification Reclassification The process of changing the class of mutual funds once certain requirements have been met. These requirements are generally placed on load mutual funds. Reclassification is not considered to be a taxable event. of research and development expense related to these personnel to cost of revenues. Such costs amounted to $1.1 million during the full year 2003 and approximately $428,000 during the fourth quarter of 2003. No such costs were incurred during 2002. Corillian anticipates that its first quarter earnings per share will be negatively impacted by its equity in the losses of Synoran (formerly e-Banc LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control ) of at least $0.01 per share on a fully diluted basis. (1) 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. Backlog is not necessarily indicative indicative: see mood. 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. (2) Estimated DDA DDA Disability Discrimination Act (1995, UK) DDA Downtown Development Authority DDA Doha Development Agenda DDA Delhi Development Authority DDA Department for Disarmament Affairs DDA Demand Deposit Account DDA Domain Defined Attribute penetration The successful unauthorized breach of a security perimeter. See penetration test. rate does not include credit-card end users |
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