Corillian Reports Third Quarter 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)--Oct. 23, 2002 Corillian Corp. (Nasdaq:CORI), a leading global provider of eFinance solutions, today reported financial results for its third fiscal quarter ended September September: see month. 30, 2002. Revenue for the third quarter was $10.0 million, compared to $9.0 million for the second quarter of 2002. 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 third quarter was $2.9 million, and pro forma net loss per share was $0.08 on 35.5 million weighted shares outstanding, compared to a pro forma net loss per share of $0.15 on 35.3 million weighted shares outstanding for the second quarter of 2002. Net loss for the third quarter was $5.6 million, including $0.2 million in charges related to the amortization of deferred stock-based compensation and $2.6 million in 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, resulting in a net loss per share of $0.16 on 35.5 million weighted shares outstanding. The net loss per share for the second quarter of 2002 was $0.17 on 35.3 million weighted shares outstanding. 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 loss for the third quarter was $1.0 million, or $0.03 per share, compared to $3.5 million, or $0.10 per share for the second quarter of 2002. Cash and investment balances at the end of the third quarter were $14.1 million, compared to $14.3 million for the second quarter of 2002. 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 statements of operations attached to this release. "The third quarter was a positive step for Corillian, as we grew our revenue and reduced our cash expenses considerably, giving us confidence that we will be adjusted EBITDA positive in the fourth quarter of 2002," 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. "In October October: see month. 2002, we settled a lawsuit lawsuit: see procedure; tort. brought against us by a bank that was not a customer of ours," said Steve v. t. 1. To pack or stow, as cargo in a ship's hold. See Steeve. Sipowicz, chief financial officer. "The bank claimed that one of our employees used its trade secrets inappropriately. We contested the lawsuit and denied the allegations, but the costs of continued litigation combined with the inherent risks of a jury trial caused us to settle the case. We agreed to pay approximately $1.8 million in cash and issue 500,000 shares of common stock to the bank. This settlement will have no ongoing impact on our business or customers." Recent Highlights -- Another top 50 bank selected Corillian Voyager as its Internet banking platform. Corillian now has 22 of the top 100 U.S. banks as customers. -- Corillian signed two Corillian Voyager SE customers, John Deere Community Credit Union and Ventura County Credit Union. -- As of the end of the third quarter, there were 8.2 million end users on Corillian Voyager platforms, compared to approximately 7.2 million at the end of the second quarter of 2002 and 3.0 million end users as of September 30, 2001. Financial Outlook 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 sales pipeline, we anticipate that fourth quarter 2002 revenue will be flat, as compared to third quarter 2002 revenue. We continue to expect to be adjusted EBITDA positive in the fourth quarter of 2002. 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 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 Corp. will hold a conference call at 5:00 p.m. ET on October 23, 2002 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 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 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. 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 banking, bill delivery and payment, wealth management, customer relationship management, campaign management, credit cards, enhanced data aggregation, personalization Custom tailoring information to the individual. On the Web, personalization means returning a page that has been customized for the user, taking into consideration that person's habits and preferences. and small business transactions. 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. 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 institution or in Corillian's data center. Corillian also offers Corillian Voyager SE, a subscription-based Web service that leverages Corillian Voyager technology in a hosted environment. 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 A small business accounting system for Windows and the Macintosh from Intuit, Inc., Mountain View, CA (www.intuit.com). It works like Intuit's popular Quicken program but is designed to track a whole business. (R), Microsoft (Microsoft Corporation, Redmond, WA, www.microsoft.com) The most successful and influential software company. Microsoft's software and Intel's hardware pioneered the PC and revolutionized the computer industry. (R) Money and Microsoft Money Microsoft Money is Microsoft's personal finance software for computers using the Microsoft Windows operating system. A version is also available for Windows Mobile (available for Money versions 2000-2006, and up to, but not including Windows Mobile 5.0). Explorer. For more information about Corillian Corporation, visit the company's Web site at http://www.corillian.com. Note: Quicken and QuickBooks are registered trademarks of Intuit in·tu·it tr.v. in·tu·it·ed, in·tu·it·ing, in·tu·its Usage Problem To know intuitively. [Back-formation from intuition. , Inc. 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 June June: see month. 30, 2002. -- Financial Tables Follow --
CORILLIAN CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
For the Quarter Ended
--------------- ------------ ------------
Sept. 30, June 30, Sept. 30,
2002 2002 2001
--------------- ------------ ------------
Revenue $10,038 $ 8,981 $15,031
Cost of revenue 5,054 5,094 7,801
--------------- ------------ ------------
Gross profit 4,984 3,887 7,230
--------------- ------------ ------------
Operating expenses:
Sales and marketing 2,820 3,189 5,694
Research and development 1,712 2,464 1,976
General and administrative 2,901 3,057 3,002
Amortization of goodwill
and other intangible assets - - 2,038
Amortization of deferred
stock-based compensation 189 231 609
Litigation settlement charges 2,580 - -
Restructuring charges - 682 -
--------------- ------------ ------------
Total operating
expenses 10,202 9,623 13,319
--------------- ------------ ------------
Loss from operations (5,218) (5,736) (6,089)
Other expense, net (421) (387) (174)
--------------- ------------ ------------
Net loss $(5,639) $(6,123) $(6,263)
=============== ============ ============
Basic and diluted net loss
per share $ (0.16) $ (0.17) $ (0.18)
Pro forma basic and diluted
net loss per share $ (0.08) $ (0.15) $ (0.10)
Shares used in computing
basic and diluted net loss
per share and pro forma
basic and diluted net loss
per share 35,469 35,259 34,779
Net loss per GAAP $(5,639) $(6,123) $(6,263)
Amortization of goodwill
and other intangible assets - - 2,038
Amortization of deferred
stock-based compensation 189 231 609
Litigation settlement
charges 2,580 - -
Restructuring charges - 682 -
--------------- ------------ ------------
Pro forma net loss (2,870) (5,210) (3,616)
Other expense, net 421 387 174
Depreciation and
amortization 1,467 1,316 1,253
--------------- ------------ ------------
Adjusted EBITDA $ (982) $(3,507) $(2,189)
=============== ============ ============
CORILLIAN CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands)
----------- ---------
Sept. 30, Dec. 31,
2002 2001
----------- ---------
ASSETS (unaudited)
Current assets:
Cash and investments $ 14,115 $ 17,703
Accounts receivable 4,223 9,427
Other current assets 5,823 7,839
----------- ---------
Total current assets 24,161 34,969
Property and equipment, net 9,512 12,995
Other assets 1,734 2,279
----------- ---------
Total assets $ 35,407 $ 50,243
=========== =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 6,454 $ 5,133
Deferred revenue 8,886 8,881
Current portion of long-term debt and capital
lease obligations 2,471 2,599
Other current liabilities 420 597
----------- ---------
Total current liabilities 18,231 17,210
Long-term debt and capital lease obligations,
less current portion 1,983 3,730
Other long-term liabilities 1,533 1,199
----------- ---------
Total liabilities 21,747 22,139
----------- ---------
Shareholders' equity:
Common stock 125,384 125,069
Deferred stock-based compensation (191) (1,169)
Unrealized translation gain/(loss) 36 (19)
Accumulated deficit (111,569) (95,777)
----------- ---------
Total shareholders' equity 13,660 28,104
----------- ---------
Total liabilities and shareholders' equity $ 35,407 $ 50,243
=========== =========
CORILLIAN CORPORATION
KEY OPERATING DATA
(unaudited)
------------ ------------ ------------
Sept. 30, June 30, Sept. 30,
2002 2002 2001
------------ ------------ ------------
Revenue backlog(1) $37,653,000 $40,722,000 $29,711,000
Live end users 8,172,000 7,159,000 3,015,000
Total Corillian Voyager Internet
banking customers 64 61 55
Live Internet banking customers 50 49 37
(1) Contractual customer commitments, including fees for licenses,
professional services, maintenance, hosting and subscriptions.
Maintenance and hosting agreements have a term of one to three
years and are renewable at the option of the customer. Revenue
backlog is not necessarily indicative of revenue to be recognized
in any given future period.
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