-- Quarterly Revenues Grow 24% Sequentially and 37% Year-over-Year to $17.7 Million
-- GAAP EPS 7 Cents
-- Adjusted EPS 12 Cents
-- Full-year Revenues Increase 23% to $58.5 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, 2004.
Fourth quarter 2004 revenue increased to $17.7 million up 24% sequentially from $14.2 million in the third quarter of 2004 and up 37% year-over-year from $12.9 million in the fourth quarter of 2003.
On a GAAP (Generally Accepted Accounting Principles) basis, net income for the fourth quarter of 2004 increased to $1,109,000, or $0.07 per diluted share, compared with net income of $710,000, or $0.05 per diluted share, in the third quarter of 2004 and net income of $675,000, or $0.04 per share, in the fourth quarter of 2003.
Excluding amortization of intangibles and amortization of capitalized software costs, Fundtech's adjusted net profit for the fourth quarter of 2004 was $1.8 million, or $0.12 per diluted share, compared with $1.3 million, or $0.09 per diluted share, in the third quarter of 2004 and $1.3 million, or $0.09 per diluted share, in the fourth quarter of 2003. (See Schedule A attached to this news release -- Reconciliation to GAAP).
"Fundtech recorded very strong revenue growth in the fourth quarter, driven by increased demand for our advanced high-end payment and settlement systems," said CEO Reuven Ben Menachem. "During the quarter, we completed the Cashtech and Datasphere acquisitions, which we believe position us well for the further expansion of revenues and profits in 2005."
For the 12 months ended December 31, 2004, revenues increased 23% to $58.5 million from $47.6 million in 2003. GAAP net income in 2004 was $2.5 million, or $0.16 per diluted share, compared with net income of $67,000, or $0.00 per diluted share, in 2003. Excluding amortization of intangibles and amortization of capitalized software costs, adjusted net income for 2004 was $5.0 million, or $0.33 per diluted share, compared to $2.6 million, or $0.17 per diluted share, in 2003. (See Schedule A Attached to this Press Release -- Reconciliation to GAAP).
"The acquisitions of Cashtech and Datasphere combined contributed $1.1 million in revenues in the fourth quarter and had a negligible impact on our profitability," said CFO Yoram Bibring. "Excluding the impact of these acquisitions, fourth quarter revenues grew 17% sequentially and 29% fourth quarter year-over-year."
Additional fourth quarter highlights:
-- Closed 48 new deals and added 15 new bank customers.
-- Closed 19 new system sales: six PAYplus USA, one CASHplus, two Global PAYplus and nine interbank connectivity.
-- Closed a large Global PAYplus transaction with HSBC that is expected to generate revenues within the next two years and beyond.
-- Accelerated revenues in connection with a new initiative in the securities trading settlement market.
Management is reiterating the quarterly and full-year 2005 guidance the Company issued on January 11, 2005.
Company to Host Conference Call
The senior management of Fundtech will host a conference call at 10:00 a.m. (ET) today Monday, February 14, to discuss the Company's fourth-quarter and full-year 2004 financial results and to answer questions from the investment community.