Fundtech Ltd., a leading provider of global electronic payment, settlement and cash management solutions, today announced financial results for the second quarter ended June 30, 2007. Fundtech posted quarterly revenues of $25.4 million, an 18% increase year-over-year, compared to second quarter revenues of $21.5 million in 2006 and 10% higher than first quarter 2007 revenues of $23.2 million.
On a GAAP (Generally Accepted Accounting Principles) basis, the Company reported net income of $1.7 million or $0.10 per diluted share, for the second quarter of 2007, compared with net income of $0.8 million, or $0.05 per diluted share, in the second quarter of 2006, and net income of $0.4 million, or $0.03 per diluted share, in the first quarter of 2007.
Excluding stock-based compensation and amortization of intangibles, Fundtech's adjusted non-GAAP net income for the second quarter of 2007 was $2.8 million, or $0.17 per diluted share, compared with $2.2 million, or $0.14 per diluted share, in the second quarter of 2006 and $1.9 million, or $0.12 per diluted share, in the first quarter of 2007. Both prior quarters' adjusted non-GAAP net income also excluded amortization of capitalized software costs.
"The second quarter of 2007 was another quarter of record revenues for Fundtech as we continue on our path of strong organic growth," said CEO Reuven Ben Menachem. "We are witnessing substantial pick up in sales activities at the high end of the payments market and, I believe that our Global PAYplus product as well as our unique domain expertise, will provide us with a meaningful competitive advantage in our long term quest to become the number one provider of both high value and low value payment solutions to the top 100 banks in the world. In addition, we are continuing to make excellent progress in our Cash Management business in the US and I am happy to report that our year-to-date revenues from this segment have grown by more than 50% year over year."
Other operational highlights:
- During the second quarter Fundtech closed 58 new deals and added 8 new bank customers.
- During the second quarter Fundtech closed 12 new system sales including 1 CLS system, 3 PAYplus USA, and 7 IGT plus at BBP.
- During the second quarter Fundtech also closed a large CASHplus in- house deal with a major US bank.