Corillian Reports Record Second Quarter Results -- Beats Consensus EPS Estimate and Projects Q1 2002 EBITDA Breakeven.Business Editors, High-Tech high-tech also hi-tech adj. Informal Of, relating to, or resembling high technology. high-tech Adjective same as hi-tech Adj. 1. Writers 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)--July 26, 2001 Corillian Corp. (Nasdaq:CORI), a leading global provider of eFinance solutions, today reported record financial results for its second fiscal quarter ended June June: see month. 30, 2001 and projected to reach 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 breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations in the first quarter of 2002. Revenue for the second quarter was $15.2 million, a 166 percent increase over revenue of $5.7 million for the same quarter of 2000 and an 11 percent increase over first quarter 2001 revenue of $13.7 million. Excluding non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. related to the amortization of deferred stock-based compensation and 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. , 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 second quarter was $5.6 million, and pro forma net loss per share was $0.16 on 34.5 million weighted shares outstanding. These results beat the First Call consensus pro forma net loss per share estimate of $0.17. Net loss for the quarter was $8.3 million, including non-cash charges of $2.7 million related to the amortization of deferred stock-based compensation and acquisition-related intangible assets, resulting in a net loss per share of $0.24 on 34.5 million weighted shares outstanding. The net loss per share for the comparable prior year period was $0.34 on 27.3 million weighted shares outstanding. "We are extremely pleased with our financial and operating performance for the second quarter and the progress we have made towards reaching profitability," said Ted Spooner  This biographical article or section is written like a resume.Please help [ improve this article] by revising it to be and encyclopedic. , CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Corillian. "I am particularly encouraged by the revenue we derived in the quarter from 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 streams such as maintenance and additional seat licenses. Our customers are seeing strong demand for their online 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. , and Corillian is delivering the solutions to drive and support that growth." Recent Highlights -- As of the end of the second quarter, there were nearly 2.5 million active end users on Voyager platforms, compared to fewer than 530,000 end users as of June 30, 2000, an increase of more than 350 percent. Potential DDA accounts for live Voyager implementations are estimated to be approximately 23.3 million, resulting in approximately an 11% penetration of existing live customers. Potential DDA accounts for all Voyager customers are estimated to be 39.4 million. -- Recent customers signed include: Corillian's 14th top 80 U.S. bank; BCB Bank, one of the top five banks in Malaysia; $30 billion asset Bank of Bangkok; Unisys Corporation and The Golden 1 Credit Union, the sixth largest credit union in the U.S. As of June 30, 2001, Corillian had 52 Voyager customers, compared to 37 customers on June 30, 2000. -- Unisys expanded its relationship with Corillian by licensing its aggregation technology to launch "Unisys e-@ction Account Aggregation Solution" for the European market. -- Recent customers that went live include: Eurobank, International Bank of Commerce, Hewlett-Packard Employees FCU, Hughes Aircraft Employees FCU and University of Wisconsin Credit Union. In addition, M&T Bank launched small business banking through Corillian's Business Finance Suite. -- Corillian signed a strategic agreement with Compaq to resell and implement Corillian's Voyager platform in the Latin American market. Business Outlook The following 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. are based on our current expectations and are subject to risks and uncertainties. Actual results may differ materially. The current expectations do not include the effect of any potential mergers and acquisitions activity. Based on our 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 our sales pipeline, we expect revenue for the third quarter of 2001 to be in the range of $15.5 to $16.5 million. Revenue for the year 2001 is expected to be $62 to $64 million. We expect gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. to be in the range of 46 to 48 percent in the third quarter of 2001. Gross profit margin is expected to be in the range of 45 to 47 percent for the year 2001. We anticipate operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , excluding non-cash charges related to the amortization of deferred stock-based compensation and acquisition-related intangible assets, to be in the range of $12.3 to $12.5 million for the third quarter of 2001 and $49 to $51 million for the year 2001. Cash and equivalents as of the end of the second quarter were $26 million. Net cash used in operations during the second quarter was approximately $9 million. However, during the first three weeks of this month, we collected approximately $5 million in cash from receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed outstanding as of June 30, 2001. We anticipate that net cash used in operations during the second half of the year will decline significantly. We anticipate that we will break even on an EBITDA basis in the first quarter of 2002. Based on our current cash usage projections, we believe our cash position is more than sufficient to reach cash breakeven. About Corillian Corporation Based in Oregon Oregon, city, United States Oregon, city (1990 pop. 18,334), Lucas co., NW Ohio, a suburb adjacent to Toledo, on Lake Erie; inc. 1958. It is a port with railroad-owned and -operated docks. The city has industries producing oil, chemicals, and metal products. , and with international offices in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , Asia and
Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. , Corillian Corporation is an award-winning Adj. 1. award-winning - having received awards; "this award-winning bridge spans a distance of five miles" provider of
eFinance-enabling software for the financial services industry. 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 platform, Corillian applications support 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 banking, bill delivery and payment, brokerage, customer relationship management, enhanced data aggregation, and small business transactions. 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. can be deployed on-site on-site adj. Done or located at the site, as of a particular activity: on-site monitoring of a production run; an on-site film shoot. at the financial firm or in the state-of-the-art Corillian Data Center. Corillian technology also enables Open Financial Exchange (OFX OFX Open Financial Exchange OFX Outer Fix OFX Open Effects ) access by finance management software packages such as Quicken A popular financial management program for PCs and Macs from Intuit, Inc., Mountain View, CA (www.intuit.com). It is used to write checks, organize investments and produce a variety of reports for personal finance and small business. (R), QuickBooks(R) and Microsoft(R) Money. For more information about Corillian Corporation, visit our Web site at www.corillian.com. Corillian Corp. 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 July 26, 2001 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. 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 Internet banking software 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 faces pricing pressure in winning new deals or fails to sign new customers, that Corillian does not recognize an increased mix of license and maintenance revenues, that Corillian does not continue to see improvements in the utilization of its professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. personnel, that Corillian encounters significant problems in installing its software at its existing customers, that Corillian is not successful in managing the capital and human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. necessary for the development of its 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. , that the third-party customers of Corillian Services terminate their contracts with Corillian Services 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 quarter ended March 31, 2001. www.businesswire.com/ipo/cori.shtml
CORILLIAN CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
For the Quarter Ended
---------------------------------------------
June 30, March 31, June 30,
2001 2001 2000
---------------------------------------------
Revenue $ 15,213 $ 13,690 $ 5,723
Cost of revenue 8,507 8,304 4,568
-------- -------- --------
Gross profit 6,706 5,386 1,155
-------- -------- --------
Operating expenses:
Sales and
marketing 5,026 5,320 3,702
Research and
development 3,628 3,753 4,122(1)
General and
administrative 3,657 3,832 1,775
Amortization of
intangibles 2,052 2,029 --
Amortization of
deferred
stock-based
compensation 633 791 1,488
-------- -------- --------
Total operating
expenses 14,996 15,725 11,087
-------- -------- --------
Loss from
operations (8,290) (10,339) (9,932)
Other income, net (9) 276 759
-------- -------- --------
Net loss $ (8,299) $(10,063) $ (9,173)
======== ======== ========
Basic and diluted
net loss per share $ (0.24) $ (0.29) $ (0.34)
Pro forma basic and
diluted net loss
per share
$ (0.16) $ (0.21) $ (0.21)
Shares used in
computing basic
and diluted net
loss per share
34,532 34,335 27,263
Shares used in
computing pro forma
basic and diluted net
loss per share
34,532(2) 34,335(2) 30,320(2)
Pro forma net loss(3) $ (5,614) $ (7,243) $ (6,348)
Other income, net 9 (276) (759)
Depreciation 1,146 1,013 401
-------- -------- --------
EBITDA (4) $ (4,459) $ (6,506) $ (6,706)
======== ======== ========
(1) Quarter ended June 30, 2000 includes $1,337 of merger-related
charges for the acquisition of InterTech Systems.
(2) Shares used in computing pro forma basic and diluted net loss
per share assume that all shares of preferred stock were
converted at their respective dates of issuance.
(3) Excludes the amortization of deferred stock-based compensation
and acquisition-related intangible assets, as well as
merger-related charges for the acquisition of InterTech
Systems, for the periods presented.
(4) Earnings before other income, net, depreciation and
amortization, as well as merger-related charges for the
acquisition of InterTech Systems.
CORILLIAN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
----------------------------
June 30, Dec. 31,
2001 2000
----------------------------
ASSETS
Current assets:
Cash and cash equivalents $ 25,935 $ 49,150
Accounts receivable 11,115 8,649
Other current assets 10,070 6,172
--------- ---------
Total current assets 47,120 63,971
Property and equipment, net 15,145 11,484
Intangible assets, net 18,802 22,769
Other assets 2,686 2,934
--------- ---------
Total assets $ 83,753 $ 101,158
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and
accrued liabilities $ 10,817 $ 14,681
Deferred revenue 7,209 5,996
Current portion of long term debt
and capital lease obligations 2,458 1,983
Other current liabilities 94 12
--------- ---------
Total current liabilities 20,578 22,672
Long term debt and capital lease
obligations, less current portion 4,894 5,265
Other long-term liabilities 1,238 628
--------- ---------
Total liabilities 26,710 28,565
--------- ---------
Shareholders' equity
Common stock 124,558 123,203
Deferred stock-based compensation (2,664) (4,164)
Unrealized translation (loss)/gain (13) 30
Accumulated deficit (64,838) (46,476)
--------- ---------
Total shareholders' equity 57,043 72,593
--------- ---------
Total liabilities and
shareholders' equity $ 83,753 $ 101,158
========= =========
CORILLIAN CORPORATION
KEY OPERATING DATA
-----------------------------------
June 30, March 31, June 30,
2001 2001 2000
-----------------------------------
Active end users 2,445,739 1,987,253 529,433
Total Voyager Internet
banking customers 52 48 37
Live Internet banking customers 34 30 18
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