Tier Reports Fiscal 2006 Fourth Quarter and Year-End Results.RESTON, Va. -- Tier Technologies, Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). :TIER), today announced results for its fiscal fourth quarter and year ended September 30, 2006. Revenues for the fiscal 2006 fourth quarter were $35.1 million, an increase of 3% as compared to $34.1 million in the fiscal 2005 fourth quarter. Net loss per diluted share was ($0.24) in the fiscal 2006 fourth quarter as compared to net loss per diluted share of ($0.07) in the same period a year ago. Revenues for the full fiscal year 2006 were $168.7 million, representing 12% growth as compared to $150.6 million for fiscal year 2005. For the full year 2006, net loss per diluted share was ($0.48) as compared to net income per diluted share of $0.06 a year ago. Items impacting the fiscal year 2006 net loss include: $8.4 million of costs associated with Tier's financial restatements, of which $1.4 million was related to the reconciliation of certain accounts for one of Tier's payment processing centers; $0.7 million of additional accrued forward losses recognized on two contracts; and $0.9 million of severance expenses associated with a former 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. . Additionally, Tier recognized $2.0 million of stock-based compensation expenses for the first time in fiscal 2006 related to the implementation of SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 123R, including $0.2 million of expenses associated with the acceleration of options relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the separation of a former CEO. As of September 30, 2006, Tier has $55.4 million in cash and cash equivalents, and investments in marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has , and $12.3 million in restricted investments. Tier has no short-term or long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. . "Tier's fiscal year 2006 top line growth was highlighted by a 39% growth rate in our Electronic Payment Processing segment," said Ronald L. Rossetti, Chairman and Chief Executive Officer of Tier. "We are pleased with the significant strides Tier has made over the past year including strengthening our leadership team, and essentially completing the restatement of our historical financial results. We are committed to creating long-term, sustainable company value for shareholders, and anticipate growing Tier profitably by leveraging our 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. strengths into new business opportunities." Tier expects to submit an application to relist its common stock on the Nasdaq Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. . Tier management has determined not to provide quarterly or annual financial guidance for fiscal year 2007, and is evaluating if it will provide financial guidance in future periods. Tier expects to resume quarterly investor conference calls upon relisting on Nasdaq. Electronic Payment Processing Electronic Payment Processing (EPP (1) (Enhanced Parallel Port) See IEEE 1284. (2) (Ethernet Packet Processor) A chip from Kalpana, Inc., Santa Clara, CA that doubles speed of Ethernet transmission to 20Mbits/sec. In 1994, Kalpana was acquired by Cisco. ) Segment revenues for the fiscal year 2006 fourth quarter were $14.0 million, an increase of 29% as compared to $10.9 million in the fiscal 2005 fourth quarter. EPP revenues for the full fiscal year 2006 were $78.4 million, an increase of 39% over $56.5 million in 2005, and represented 46% of Tier's total fiscal year 2006 revenues. Fiscal 2006 EPP revenue improvement was driven by an increase in the total number of transactions processed under new and pre-existing contracts as compared to fiscal 2005. Government Business Process Outsourcing Business process outsourcing (BPO) is the contracting of a specific business task, such as payroll, to a third-party service provider. Usually, BPO is implemented as a cost-saving measure for tasks that a company requires but does not depend upon to maintain its position in Government Business Process Outsourcing (GBPO) Segment revenues were $11.0 million in the fiscal year 2006 fourth quarter, a decrease of 9% as compared to $12.1 million in the fiscal 2005 fourth quarter. For fiscal year 2006, GBPO revenues decreased 1% to $45.5 million from $45.8 million in fiscal 2005. GBPO revenues represented 27% of Tier's total fiscal year 2006 revenues. Factors impacting fiscal 2006 GBPO revenues were $7.8 million of decreased revenues due to the expiration of several contracts in fiscal 2006 and the second half of fiscal 2005, partially offset by $7.5 million of additional revenues from a five-year contract for child support processing services that commenced in the second quarter of fiscal year 2005. Packaged Software See software package. and Systems Integration Packaged Software and Systems Integration (PSSI PSSI Persatuan Sepak Bola Seluruh Indonesia (Football Association of Indonesia) PSSI Performance Salary Step Increase PSSI Peninsula Sanitary Service, Inc. ) Segment revenues declined 9% in the fiscal year 2006 fourth quarter to $10.1 million from $11.1 million in the prior year. For the full fiscal year 2006, PSSI revenues decreased 7% to $44.8 million from $48.4 million in fiscal year 2005. PSSI revenues represented 27% of Tier's total fiscal year 2006 revenues. Fiscal 2006 PSSI revenue decline was primarily attributable to $10.9 million of decreased revenues from contracts that were completed, nearing completion or entering the maintenance phase of the project during fiscal 2006, partially offset by $8.4 million of revenues generated by new contracts entered into during fiscal 2006 and the latter part of fiscal 2005. About Tier Tier Technologies, Inc. offers a diversified array of innovative business and financial transaction processing solutions. Headquartered in Reston, Virginia Reston is an internationally known planned community whose goal was to revolutionize post-World War II concepts of land use and residential/corporate development in American suburbia. , Tier's clients include over 3,100 federal, state, and local governments, educational institutions, utilities and commercial clients in the U.S. and abroad. Tier provides information technology solutions and, through its Official Payments Corp. subsidiary, delivers payment processing solutions for a wide range of markets. From designing, installing and maintaining cutting-edge public sector software systems, to delivering fast, secure and convenient financial transaction processing solutions, Tier provides integrated information solutions that solve problems while balancing innovation with practicality. For more information, see www.tier.com and www.officialpayments.com. Statements made in this press release that are not historical facts are 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 are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Securities 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. Reform Act of 1995. Tier undertakes no obligation to update any such forward-looking statements. Each of these statements is made as of the date hereof based only on current information and expectations that are inherently subject to change and involve a number of risks and uncertainties. Actual events or results may differ materially from those projected in any of such statements due to various factors, including, but not limited to: the impact of governmental investigations; the potential loss of funding by clients, including due to government budget shortfalls or revisions to mandated statutes; the timing, initiation, completion, renewal, extension or early termination of client projects; the Company's ability to realize revenues from its business development opportunities; unanticipated claims as a result of project performance, including due to the failure of software providers or subcontractors to satisfactorily complete engagements; and approval of the Company's expected application to relist its common stock on the Nasdaq Stock Market. For a discussion of these and other factors which may cause our actual events or results to differ from those projected, please refer to the Company's annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended September 30, 2006 filed today with the SEC. (Financial tables follow) [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion