- Quarterly Revenues Grow 17% Year-over-Year to $12.9 Million
- GAAP EPS of 2 cents
- Adjusted EPS of 6 cents
Fundtech Ltd. (NASDAQ: FNDT), a leading provider of global electronic payment, settlement and cash management solutions, today announced its financial results for the first quarter of 2004.
Revenues for the first quarter of 2004 were $12.9 million, unchanged from the fourth quarter of 2003 and 17% higher than $11.0 million in the first quarter of 2003.
On a GAAP (Generally Accepted Accounting Principles) basis, net income for the first quarter of 2004 was $260,000, or $0.02 per diluted share, compared with net income of $675,000, or $0.04 per diluted share, for the fourth quarter of 2003 and a net loss of $(625,000), or $(0.04) per share, in the first quarter of 2003.
Excluding amortization of intangibles and amortization of capitalized software costs, Fundtech's adjusted net profit for the first quarter of 2004 was $900,000, or $0.06 per diluted share, compared with $1,300,000, or $0.09 per diluted share, in the fourth quarter of 2003 and $4,000, or $0.00 per share, in the first quarter of 2003. (See Schedule A Attached to this Press Release --
Reconciliation to GAAP).
"During the first quarter we experienced success selling our Global PAYplus solution in the U.S., and met our revenue and profitability guidance targets," said Fundtech CEO Reuven Ben Menachem. "We also enjoyed positive momentum in our European SwifNet business, continued to increase our recurring revenue base and raised our cash and marketable securities position by $7.8 million to $54.2
Additional first quarter highlights:
- Closed two CLS system sales, to banks in South Africa and Asia.
- Closed 30 new deals and added 5 new customers.
- Closed four new system sales in the U.S.; two Global PAYplus, one PAYplus USA and one CASHplus.
- Received an order from Citibank to implement Global PAYplus in Japan.
- Topped 100 ASP customers worldwide.
- Upgraded 11 FEDplus customers to PAYplus USA.
The financial guidance provided is current as of today only and the Company undertakes no obligation to update its estimates.
For the second quarter of 2004, Fundtech expects revenues to be between $13.0 million to $13.5 million. In accordance with last quarter's guidance, the Company expects total operating expenses to grow by approximately $500,000 in the second quarter and projects that GAAP earnings per diluted share, including all amortization expenses, will be in the range of $0.01 to $0.03. Excluding all amortization expenses, Fundtech expects adjusted earnings per diluted share to be in the range of $0.05 to $0.07. Amortization expenses for the second
quarter are estimated to be approximately $629,000, or $0.04 per share.
In light of the company's first quarter results and second quarter expectations, Fundtech is increasing the full-year 2004 financial guidance range.
Fundtech now expects 2004 revenues to be between $53.5 million and $54.5 million, compared with prior guidance of $52.8 million to $54.3 million. GAAP earnings per diluted share is expected to be between $0.10 and $0.16 compared with prior guidance of $0.06 to $0.15. Earnings per diluted share, before all amortization expenses, is expected to be in the range of $0.26 to $0.32, compared with prior guidance of $0.22 to $0.31.
Company to Host Conference Call
Fundtech management will host a conference call at 8:30 a.m. (ET) today to discuss its first-quarter 2004 results and to answer questions from the investment community.
To participate, please call 866-500-4964 or 011-972-3-925-5910 and ask for the Fundtech Call. From Israel, please dial (03) 925-5910. A replay of the conference call will be available for playback from noon (ET) today until 12:00 a.m. (ET) Monday, May 10. The replay may be accessed by dialing 877-332-1104 or 972 (3) 9255934.