- Quarterly Revenues of $12.9 Million, 7% sequential growth, 21% vs. Q4 2002
- GAAP EPS of 4 cents
- Adjusted EPS of 9 cents
- Full-year Revenues Increase 20% to $47.6 Million
Fundtech Ltd. (NASDAQ: FNDT), a leading provider of global electronic payment, settlement and cash management solutions, today announced its financial results for the fourth quarter and year ended December 31, 2003.
Revenues for the fourth quarter of 2003 increased to $12.9 million, up 7% sequentially from $12.0 million and 21% higher than $10.6 million in the fourth quarter of 2002. On a sequential basis, service revenues increased $600,000, maintenance revenues were up $100,000, license revenues grew $100,000, and hardware revenues increased $100,000.
On a GAAP (Generally Accepted Accounting Principles) basis, net income for the fourth quarter was $675,000 or $0.04 per diluted share, compared with $247,000, or $0.02 per diluted share, for the third quarter of 2003 and net loss of $(4.1) million, or $(0.29) per share, in the fourth quarter of 2002.
Excluding amortization of intangibles and amortization of capitalized software costs, the adjusted net profit for the fourth quarter of 2003 was $1,300,000, or $0.09 per diluted share, compared with $900,000, or $0.06 per diluted share, in the third quarter of 2003 and a loss of $(900,000), or $(0.06) per share, in the fourth quarter of 2002, which also excluded non-recurring expenses. (See
Schedule A Attached to this Press Release -- Reconciliation to GAAP).
"Our cash management and payment solutions products are fast becoming mission-critical technology for financial institutions worldwide, and that momentum is reflected in our fourth quarter performance," said Fundtech CEO Reuven Ben Menachem. "We enjoyed a strong year in 2003, highlighted by higher revenues, steadily increasing gross margins and improved operating efficiencies. We
expect to capitalize on our market position to expand our business even further in 2004, with a focus on continuing to grow our recurring revenue base."
For the 12 months ended December 31, 2003, revenues increased 20% to $47.6 million from $39.8 million in 2002. GAAP net income in 2003 was $67,000, or $0.00 per diluted share, compared with 2002 net loss of $(16.6) million, or $(1.16) per share. Excluding amortization of intangibles and amortization of capitalized software costs, the adjusted net profit for 2003 was $2.6 million, or $0.17 per diluted share, compared to a loss of $(10.4) million, or $(0.73) per share, in 2002 which also excluded non-recurring expenses. (See Schedule A
Attached to this Press Release -- Reconciliation to GAAP).
During the fourth quarter of 2003 cash and marketable securities increased by $3.0 million to $46.4 million. For the year cash and short and long term marketable securities increased by $3.9 million.
Additional fourth quarter highlights:
- Closed a Global PAYplus system sale to a European bank.
- Closed 33 new deals and added 8 new bank customers.
- In the U.S., the Company closed ASP and disaster recovery services transactions, which are expected to generate $1.0 million of revenues over the next three to five years.
Closed five new sales for its next generation products in the US, four new PAYplus USA sales and one new CASHplus sale.
The financial guidance provided is current as of today only and the Company undertakes no obligation to update its estimates.
For the full 12 months of 2004, Fundtech expects revenues to be between $52.8 million to $54.3 million and, Operating profit to be between $1.0 million and $2.2 million . Operating profit before all amortization expenses is expected to be between $3.5 million and $4.7 million, and earnings per share, before all amortization expenses, in the range of $0.22 to $0.31. Including all amortization expenses, Fundtech expects GAAP earnings per share to be between $0.06 and $0.15. Amortization expenses for 2004 are estimated to be $0.16 per
share. (This forecast assumes annual amortization of $2.5 million for 2004.)
To support its continued growth, Fundtech is currently adding personnel and increasing quarterly expenses by up to $500,000 in the first quarter of 2004 and by an additional $500,000 in the second quarter. Fundtech expects its expenses to remain stable in the third and fourth quarter. Fundtech expects first quarter revenues to be between $12.6 million to $12.9 million with earnings per share, before all anticipated amortization expenses, in the range of $0.04 to $0.06.
Including all anticipated amortization expenses, Fundtech expects GAAP earnings per share to be between breakeven and $0.02. Amortization expenses are estimated to be $0.04 per share in the first quarter of 2004. (This forecast assumes amortization of approximately $629,000 for the first quarter.)
Company to Host Conference Call
Fundtech management will host a conference call at 8:30 a.m. (ET) today to discuss its fourth-quarter and full-year 2003 results and to answer questions from the investment community.