On a GAAP (Generally Accepted Accounting Principles) basis, the Company reported net income of $1.6 million or $0.10 per diluted share, for the fourth quarter of 2006 compared with net income of $1.6 million, or $0.10 per diluted share, in the fourth quarter of 2005, and net income of $1.2 million, or $0.08 per diluted share, in the third quarter of 2006.
Excluding stock-based compensation, amortization of intangibles and amortization of capitalized software costs, Fundtech's adjusted non-GAAP net income for the fourth quarter of 2006 was $3.0 million, or $0.19 per diluted share, compared with $2.3 million, or $0.15 per diluted share, in the fourth quarter of 2005 and $2.5 million, or $0.16 per diluted share, in the third quarter of 2006.
"The year 2006 was another excellent year for Fundtech. We experienced organic growth at an annual rate of 14%, met our EPS guidance, and made important strides to ensure our long term growth," said CEO Reuven Ben Menachem. "Our Global PAYplus product is proving to be a great solution for European banks that are seeking new strategic payments solutions in the evolving European regulatory environment. In the US market we have transitioned to mostly ASP bookings that will translate into revenues over the next five years. I am confident that our current strategy will ensure healthy organic growth over the next few years."