Corillian Second Quarter 2005 Results Exceed Guidance; Corillian Announces New Deals, Grows Revenue and Earnings Per Share.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. -- Corillian Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CORI), the top provider of online banking, bill payment and anti-fraud solutions to leading financial institutions, today reported financial results for the second quarter ended June June: see month. 30, 2005. Revenues for the second quarter were $12.3 million, compared to $11.2 million for the first quarter of 2005, an increase of 10 percent. Net income for the second quarter was $2.1 million, resulting in 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 $0.05, compared to net income of $654,000 and diluted earnings per share of $0.02 in the first quarter of 2005. These results exceed prior company guidance on both revenues and earnings per share. Cash and investment balances at the end of the second quarter were $38.9 million, compared to $39.4 million at December December: see month. 31, 2004. "This has been one of our best quarters in recent time as we executed on many different fronts, enabling us to beat our estimates in both revenue and earnings per share," 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. ." Recent Highlights --Capital One licensed 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 for its online enterprise platform across multiple lines of business. --Space Coast Credit Union licensed the Corillian Voyager platform and will be the first customer to deploy the Corillian Family Banking application. --AmSouth and M&T Bank, two long-time customers, successfully upgraded to the Corillian Voyager 3.1 platform. --Five financial institutions signed up for the Corillian Fraud Detection System, including a top 100 Bank, non-online banking customer. --Three smaller financial institutions subscribed Subscribed Newly issued securities that an investor has agree to, or stated his intent to, buy in a public offering prior to the issue date. When an investor uses rights, he expects to own the designated number of shares they have subscribed to once the offering is completed. to NCR's shared server solution for online banking and bill payment, powered by the Corillian Voyager platform. --Corillian Consumer Banking and Corillian Corporate Banking were recognized as leading online banking applications by Celent Communications and HighQuest Partners, two industry-leading research firms. --Corillian signed strategic partnership agreements with both Teros and NameProtect to help financial institutions and e-Commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. organizations proactively combat online phishing Pronounced "fishing," it is a scam to steal valuable information such as credit card and social security numbers, user IDs and passwords. Also known as "brand spoofing," an official-looking e-mail is sent to potential victims pretending to be from their ISP, bank or retail establishment. and identity theft attacks. Financial Outlook Based on the 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 deals in the sales pipeline, Corillian anticipates that third quarter 2005 revenues will be in the range of $13.0 to $14.5 million, which includes approximately $1.0 milllion of revenue from InteliData, following the anticipated close of that transaction on August 19, 2005. Corillian expects 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 fully 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. share, excluding the amortization of 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. related to acquisitions. Corillian will hold a conference call at 5:00 p.m. ET on July July: see month. 28, 2005 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://www.corillian.com/investor. About Corillian Corporation Corillian is the top provider of online banking, bill payment and fraud prevention applications to leading financial institutions. Corillian provides the most flexible, scalable and secure set of online banking applications across multiple lines of business, integrating hundreds of best practices observed from some of the most innovative financial institutions in the world, as well as best practices in usability How easy something is to use. Both software and Web sites can be tested for usability. Considering how difficult applications are to use and Web sites are to navigate, one would wish that more designers took this seriously. See user interface and usability lab. and functionality established by industry experts. Corillian features integrated applications across Consumer Banking, Small Business Banking, Wealth Management, Credit Card Management, and Corporate Cash Management, as well as enterprise wide solutions, including Fraud Detection, Payments Warehouse, Alerts, eStatements, and OFX OFX Open Financial Exchange OFX Outer Fix OFX Open Effects . 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 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 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 Corillian's 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 the acquisition of InteliData Technologies Corporation is not completed as planned, that Corillian does not successfully integrate the business and operations of InteliData into Corillian's business and operations, that Corillian is 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. acceptance criteria criteria (krītēr´ē  ),n. on projects for its customers and fails to earn performance bonuses or receive milestone “Milemarker” redirects here. For the American indie rock band, see Milemarker (band). A milestone or kilometre sign is one of a series of numbered markers placed along a road at regular intervals, typically at the side of the road or in a median. payments on such projects, that Corillian fails to sign new customers, that Corillian does not realize anticipated business from its sales pipeline, that Corillian's existing customers do not continue to demand seat licenses, new products or 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 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 March 31, 2005 and the proxy statement Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. and prospectus included as part of its Registration Statement on Form S-4 (File No. 333-124848), as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. from time to time.
CORILLIAN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
For the Quarter Ended
-------------------------
June 30, June 30,
2005 2004
-------------------------
Revenues $ 12,287 $ 12,429
Cost of revenues 4,151 4,785
------------- -------------
Gross profit 8,136 7,644
------------- -------------
Operating expenses:
Sales and marketing 1,719 1,825
Research and development 2,607 1,587
General and administrative 1,942 1,671
------------- -------------
Total operating expenses 6,268 5,083
------------- -------------
Income from operations 1,868 2,561
Other income (expense), net 280 (212)
------------- -------------
Income before income taxes 2,148 2,349
Income taxes 50 50
------------- -------------
Net income $ 2,098 $ 2,299
============= =============
Basic net income per share $ 0.05 $ 0.06
Diluted net income per share $ 0.05 $ 0.06
Shares used in computing basic net
income per share 38,935 37,499
Shares used in computing diluted net
income per share 40,051 40,198
CORILLIAN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
June 30, 2005 Dec. 31, 2004
------------- -------------
ASSETS
Current assets:
Cash and investments $ 38,850 $ 39,350
Accounts receivable, net 7,891 8,218
Revenue in excess of billing 1,325 1,363
Other current assets 2,214 1,902
---------------- -------------------
Total current assets 50,280 50,833
Property and equipment, net 3,520 3,800
Other assets 869 636
---------------- -------------------
Total assets $ 54,669 $ 55,269
================ ===================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
liabilities $ 4,567 $ 3,447
Deferred revenue 12,552 16,630
Current portion of long-term
debt and capital lease
obligations 8 296
Other current liabilities 888 1,043
---------------- --------------------
Total current liabilities 18,015 21,416
Long-term debt and capital lease
obligations, less current portion - 629
Other long-term liabilities 548 622
---------------- --------------------
Total liabilities 18,563 22,667
---------------- --------------------
Shareholders' equity:
Common stock 130,721 129,969
Accumulated other comprehensive
income 61 61
Accumulated deficit (94,676) (97,428)
---------------- --------------------
Total shareholders' equity 36,106 32,602
---------------- --------------------
Total liabilities and
shareholders' equity $ 54,669 $ 55,269
================ ====================
CORILLIAN CORPORATION
SUPPLEMENTAL INFORMATION
(unaudited)
License revenues for the second quarter of 2005 were $3.8 million,
or 31% of total revenues, as compared to $5.0 million or 40% of total
revenues in the second quarter of 2004. License block sales in the
second quarter of 2005 were approximately $1.4 million, as compared to
approximately $1.5 million in license block sales in the second
quarter of 2004.
Corillian's revenue backlog was $30.6 million as of June 30, 2005,
compared to $32.4 million at the end of the fourth quarter of 2004.
Revenue backlog represents contractual customer commitments, including
fees for licenses, professional services, maintenance, hosting and
subscriptions. Backlog is not necessarily indicative 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 and Corillian's customers meeting anticipated schedules
for customer-dependent deliverables. 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.
Total headcount as of June 30, 2005 was 223, compared with 214 as
of June 30, 2004.
The total number of shares outstanding as of June 30, 2005 was
39.0 million shares.
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