Quarterly Revenues Grow 35% Year-over-Year to $19.1 Million; GAAP EPS 9 Cents; Adjusted EPS 13 Cents; Company Increases 2005 Revenues Guidance
JERSEY CITY, N.J.--Nov. 1, 2005--Fundtech Ltd. (NASDAQ: FNDT), a leading provider of global electronic payment, settlement and cash management solutions, today announced financial results for its fiscal 2005 third quarter ended September 30, 2005. Fundtech posted quarterly revenues of $19.1 million, a 35% increase year-over-year, compared to third quarter revenue of $14.2 million in 2004, and a 4% sequential increase compared to second quarter revenue of $18.4 million in 2005.
On a GAAP (Generally Accepted Accounting Principles) basis, the Company reported net income of $1.4 million or $0.09 per diluted share, for the third quarter of 2005 compared with net income of $710,000, or $0.05 per diluted share, in the third quarter of 2004, and net income of $844,000, or $0.05 per diluted share, in the second quarter of 2005.
Excluding amortization of intangibles and amortization of capitalized software costs, Fundtech's adjusted net income for the third quarter of 2005 was $2.0 million, or $0.13 per diluted share, compared with $1.3 million, or $0.09 per diluted share, in the third quarter of 2004 and $1.5 million, or $0.10 per diluted share, in the second quarter of 2005.
"We're very pleased to report another quarter of record operating performance," said CEO Reuven Ben Menachem. "Our continued success is directly attributable to our great products and our global team of talented and dedicated employees."
Third quarter highlights:
- Fundtech closed 45 new deals and added 4 new bank customers.
- Closed 7 new system sales: 4 Payments and 3 Cash Management.
- In the U.S., closed ASP and disaster recovery services transactions, which are expected to generate $1.7 million of revenues over the next five years.
- A large bank in the far-east selected Cashtech's Enterprise Cash Management System Cash In as its strategic cash management solution.
"Further, we are very excited by our recently announced acquisition of Radius Partners," Ben Menachem added. "Year-to-date revenues from the Securities area now comprise 7% of the Company's total revenue, compared with less than 1% a year ago."
"Looking ahead I believe we will continue to benefit from the strength in the high-end payments marketplace, and look forward to strong revenue and operating growth in the fourth quarter and beyond."
The financial guidance provided is current as of today only and the Company undertakes no obligation to update its estimates.
Fundtech is increasing its revenue guidance for the fourth quarter of 2005, while earnings per diluted share guidance for the fourth quarter will remain unchanged. Fundtech is also increasing its full year 2005 guidance for both revenues and diluted earnings per share.
For the fourth quarter of 2005 we expect revenues of between $19.3 million and $19.8 million, GAAP earnings per diluted share of between $0.09 and $0.10 and adjusted earnings per diluted share, before all amortization expenses, are expected to be in the range of $0.13 to $0.14.
Fundtech currently expects 2005 revenues of between $74.0 million to $74.5 million, compared with previous guidance of $72.9 million to $73.8 million. The range for GAAP earnings per diluted share has increased to between $0.26 and $0.27 from prior guidance of between $0.24 and $0.26. Adjusted earnings per diluted share, before all amortization expenses, are expected to be in the range of $0.43 to $0.44, versus a previous range of $0.41 to $0.43.