Key Financial Highlights:
* Revenue of $12.0 million, 3% sequential growth, 20% growth vs. Q3 2002
* GAAP EPS of 2 cents
* Adjusted EPS of 6 cents
* (See Schedule A Attached to this Press Release - Reconciliation to GAAP)
Fundtech Ltd. (NASDAQ: FNDT), a leading provider of global electronic payments, settlement and cash management solutions,announced today its financial results for the third quarter ending September 30, 2003.
Revenues for the third quarter of 2003 were $12.0 million, 3% higher than the second quarter of 2003 and 20% higher than the third quarter of 2002. Compared to the second quarter of 2003, service revenues increased by $400,000 and maintenance revenues increased by $300,000, while license revenues declined by $300,000.
On a GAAP basis, net income for the third quarter of 2003 was $247,000, or $0.02 per share, compared with a net loss of $230,000, or $0.02 per share for the second quarter of 2003 and net loss of approximately $4.8 million or $0.33 per share in the third quarter of 2002.
Excluding amortization of intangibles and amortization of capitalized software costs, the adjusted net profit for the third quarter of 2003 was approximately $900,000, or $0.06 per share, compared to approximately $400,000, or $0.03 per share, in the second quarter of 2003 and a net loss of approximately $2.6 million, or $0.18 per share, in the third quarter of 2002.
"We are continuing to grow and improve our operating results. This quarter we have reached another important milestone, net profit, and we will work hard to continue to grow and improve profitability in the future," said Reuven Ben Menachem, CEO of Fundtech. " While general market conditions have remained unchanged, we are now beginning to capitalize on our investments in our suite of next generation products. Since the beginning of 2003, we are also witnessing momentum in the ASP market in the US. This trend bodes well for Fundtech and if it continues, we expect our recurring revenue base to continue to increase in the years to come."
Additional Third quarter highlights:
- Closed a CLS system sale to a European bank.
- Closed 37 new deals and added 5 new bank customers.
- Closed ASP and disaster recovery services transactions, which are expected to generate $2.2 million of revenues over the next 3 to 5 years.
- Closed two new sales for our next generation cash management product, CASHplus.
- Announced the launch of a SwiftNet service bureau for Nordic Region together with BGC.
Q4 2003 Guidance
Fundtech expects revenues in the fourth quarter of 2003 to be in the range of $12.0 to $12.5 million and expects earnings per share before all anticipated amortization expense to be in the range of 6 cents to 8 cents. Including all anticipated amortization expenses, Fundtech expects GAAP earnings per share to be between 2 cents and 4 cents. Amortization expenses are estimated to be 4 cents per share in the fourth quarter of 2003. (This forecast assumes amortization of approximately $629,000 for the quarter.)