Corillian Reports Fourth Quarter and Year-end 2006 Results.

Corillian has record sales year and grows revenue 24 percent year-over-year

PORTLAND, Ore. -- Corillian Corp. (NASDAQ:CORI), the top provider of online banking, payment and security solutions to the financial services industry, today reported financial results for the fourth quarter and year ended December 31, 2006.

Revenues for the fourth quarter were $16.5 million, compared to $15.6 million for the third quarter of 2006 and $13.8 million for the fourth quarter of 2005. Net income for the fourth quarter was $779,000, resulting in diluted earnings per share of $0.02, compared to net income of $590,000 for the third quarter of 2006, resulting in diluted earnings per share of $0.01. This compares to a net loss of $39,000 for the fourth quarter of 2005, resulting in diluted earnings per share of ($0.00).

Non-GAAP net income, as described below, for the fourth quarter was $2.1 million, resulting in non-GAAP diluted earnings per share of $0.05. This compares to non-GAAP net income of $1.5 million in the third quarter of 2006, resulting in non-GAAP diluted earnings per share of $0.03 and non-GAAP net income of $384,000 in the fourth quarter of 2005, resulting in non-GAAP diluted earnings per share of $0.01. A reconciliation of GAAP results to non-GAAP results is provided as part of this press release.

Revenues for 2006 were $61.0 million, compared to $49.2 million for 2005, an increase of 24 percent. Net loss for 2006 was $1.1 million, resulting in a diluted net loss per share of ($0.02). This compares to net income of $2.7 million in 2005, resulting in diluted earnings per share of $0.06. Non-GAAP net income for 2006 was $3.2 million, resulting in diluted earnings per share of $0.07. This compares to non-GAAP net income of $3.3 million in 2005, resulting in non-GAAP diluted earnings per share of $0.08.

"We're very pleased with our progress in 2006," said Alex Hart, president and CEO of Corillian. "Revenue was up 24 percent over 2005, the heavy investment cycle that had suppressed our earnings began to normalize during the second half of the year, and we ended the year with backlog at $53.2 million, an all-time high. I'm especially pleased that both current revenue and longer-term recurring revenue backlog increased during the second half of the year. The dual strategy of increasing the number of products and services we deliver to big banks and productizing our industry-leading solutions for smaller financial institutions is working well. We look forward to continued improvement this year and we're excited about the opportunities that lie ahead."

Recent Highlights

* Corillian signed two new consumer banking deals in the fourth quarter, including Bremer Bank, a $6.6 billion regional financial services company headquartered in St. Paul, Minn. Bremer will leverage Corillian Consumer Banking, Corillian Payments, Corillian Family Banking, Corillian Personal Money Manager and Corillian Intelligent Authentication[TM] to build on the bank's existing online banking and payment efforts.

* During the fourth quarter, Corillian announced the availability of Corillian Member Advantage, a rapidly-deployable ASP online banking solution for credit unions. Corillian Member Advantage provides credit unions of all sizes with a competitively priced online banking experience that offers more control and access to the features and best practices utilized by the largest banks in the country.

* Suncorp, a leading Australian diversified financial services organization offering banking, insurance and wealth management products, expanded its online banking relationship to include Corillian Business Banking, Personal Money Manager and Corillian Intelligent Authentication.

* During the fourth quarter, Corillian signed the first customer for its new end-to-end bill payment solution. This solution leverages the Corillian Payments Warehouse and the payment processing services of Corillian's bill payment processing partners.

* Corillian signed 10 new deals for its Corillian Intelligent Authentication product during the fourth quarter. Corillian signed 38 new customers for Corillian Intelligent Authentication in 2006, including 12 of the top 100 U.S. banks - one of the most successful new product launches in the history of the company. Corillian currently has approximately 50 leading financial institutions that have selected Corillian Intelligent Authentication as the solution of choice to deliver strong online authentication services to their online banking users.

* During the fourth quarter, Corillian launched TrueStamp, a new Web site verification technology embedded in Corillian Intelligent Authentication v2.1, the next version of the company's strong authentication solution. TrueStamp adds an additional component of security to a user's online banking experience by securely verifying the banking site to the user before they ever have to enter sensitive information such as a user name and password.

* In 2006, Corillian received certification under the new international security standard ISO:27001, which replaced the British Standard BS:7799 in October 2005. ISO:27001 is the most widely recognized international framework and standard for developing and certifying a company's security management system. Corillian is the first online banking company to receive the certification and was among a select group of only eight organizations in the U.S. to receive this international honor.

Financial Outlook

The company anticipates that first quarter 2007 revenues will be in the range of $14.5 to $16 million and GAAP EPS will range from a net loss of ($0.04) to ($0.01) per diluted share. Per share non-GAAP results are expected to range from a loss of ($0.02) to a profit of $0.01. Corillian expects lower profitability in the first quarter due primarily to seasonally higher payroll-related costs and a change in the mix of work related to subscription-based projects. Corillian expects continued improvement in profitability throughout 2007, consistent with our performance in 2006.

Reconciliation of GAAP results to non-GAAP Results

Corillian provides non-GAAP operating results as a supplement to its GAAP financial results. Management believes that non-GAAP results provide investors with a representation of Corillian's core operating performance that can be helpful in assessing future growth.

Corillian's non-GAAP results exclude the following charges and benefits from Corillian's statements of operations when applicable:

* Stock-based compensation

* Amortization of intangible assets 

* Restructuring-related charges

* Merger-related charges

* Impairment charges

A detailed reconciliation of GAAP net income (loss) and non-GAAP net income per share is included in the attached condensed consolidated statement of operations.

Corillian will hold a conference call at 5:00 p.m. ET on February 8, 2007 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://www.corillian.com/investors.

About Corillian Corporation

Corillian is the market leader of online banking, payment and security solutions to the financial services industry. With 30 of the top 100 U.S. banks and 21 of the top 100 U.S. credit unions as customers, Corillian serves over 35 million online banking end users. Corillian provides the most flexible, scalable and secure set of online banking applications across multiple lines of business, as well as an extensive set of integration solutions to enable seamless connectivity between legacy systems and Web and database applications. Corillian features integrated applications across Consumer Banking, Small Business Banking, Business and Consumer Payments, Wealth Management, Credit Card Management, and Corporate Cash Management, as well as enterprise wide solutions, including Fraud Detection, Alerts, eStatements, and OFX. Corillian's fraud prevention solutions use Preemptive 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 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 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 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-Q for the quarter ended September 30, 2006.

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