GAAP EPS 3 Cents
Adjusted EPS 8 Cents
Company Increases 2005 Financial Guidance
JERSEY CITY, N.J.--May 3, 2005--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 ended March 31, 2005.
First quarter 2005 revenues were $17.2 million, up 33% year-over-year from $12.9 million in the first quarter of 2004 and down 3% sequentially from $17.7 million in the fourth quarter of 2004.
On a GAAP (Generally Accepted Accounting Principles) basis, net income for the first quarter of 2005 was $514,000, or $0.03 per diluted share, compared with net income of $260,000, or $0.02 per diluted share, in the first quarter of 2004 and net income of $1,109,000, or $0.07 per diluted share, in the fourth quarter of 2004.
Excluding amortization of intangibles and amortization of capitalized software costs, Fundtech's adjusted net income for the first quarter of 2005 was $1.2 million, or $0.08 per diluted share, compared with $0.9 million, or $0.06 per diluted share, in the first quarter of 2004 and $1.8 million, or $0.12 per diluted share, in the fourth quarter of 2004. (See Schedule A attached to this news release
-- Reconciliation to GAAP).
"Fundtech's revenue growth in the first quarter compared to last year was fueled by the success of our products at the high end of the market," said CEO Reuven Ben Menachem. "We further penetrated existing customers and added new customers to our roster, taking advantage of the global trend to increase automation of financial transactions."
"On the operations side, we completed the integration of the Cashtech and Datasphere acquisitions and, we believe Fundtech is well positioned for further revenue and net income growth in 2005,"
continued Ben Menachem.
First quarter highlights:
-- Closed 32 new deals and added five new bank customers
-- Closed 13 new system sales: seven PAYplus USA, four CASHplus,
one Recon and one interbank connectivity
-- In the U.S., closed ASP and disaster recovery services
transactions, which are expected to generate $2.5 million of
revenues over the next five years.
-- Generated increased revenues in connection with our new
initiative in the securities trading settlement market
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 second quarter of 2005 and also is increasing its revenue and earnings guidance for full-year 2005. Fundtech's guidance for the third and fourth quarter of 2005 remains unchanged.
For the second quarter of 2005, Fundtech expects revenues of between $17.2 million and $17.5 million, and GAAP earnings per diluted share, including all amortization expenses, of $0.04 to $0.05.
Adjusted earnings per diluted share, excluding all amortization expenses, are expected to be $0.08 to $0.09.
For full-year 2005, Fundtech currently expects 2005 revenues of between $70.4 million to $71.7 million, compared with previous guidance of $68.0 million to $70.0 million. The range for GAAP earnings per diluted share has increased to between $0.22 and $0.25 from prior guidance of between $0.20 and $0.24. Adjusted earnings per diluted share, before all amortization expenses, are expected to be in the range of $0.40 to $0.43, versus a previous range of $0.38 to $0.42.