Bottomline Technologies (NASDAQ: EPAY), a leading provider of collaborative payment, invoice and document automation solutions, today reported financial results for the first quarter ended September 30, 2011.
Revenues for the first quarter were $52.5 million, an increase of $10.4 million, or 25%, from the first quarter of last year. Subscriptions and transactions revenue increased 53% from the first quarter of last year to $17.6 million.
Gross margin for the first quarter was $29.2 million, an increase of $5.7 million from the first quarter of last year. Net income for the first quarter was $1.7 million, or net income per share of $0.05.
Core net income for the first quarter was $8.9 million. Core net income increased $0.4 million from the first quarter of last year. Core net income excludes acquisition-related expenses, including amortization of intangible assets, of $4.0 million and equity-based compensation of $3.2 million. Core earnings per share was $0.26.
âWe are pleased to report another very good quarter highlighted by 25% revenue growth from the prior year,â said Rob Eberle, President and CEO of Bottomline Technologies. âThe results evidence the demand for our solutions and the strength of our business model. We have begun fiscal 2012 on a positive note and are well positioned for a strong future.â
First Quarter Customer Highlights
â¢ Leading organizations, including Allied Irish Bank, ALLY Financial, Aviva USA, Bingham McCutchen LLP, Ceva Logistics, Cigna, Co-operative Insurance Society, Exelon Business Services, Forest City Enterprises, Franklin Templeton, Glasgow Credit Union, Man Investments Ltd, Marks & Spencer, Medavie Blue Cross, NRG Energy, Philadelphia Insurance, Prudential Plc, Raymond James, Sanctuary Housing Association, Sun Life Financial, The Royal Bank of Scotland and Wilmington Group Plc, chose Bottomlineâs payment automation solutions.
â¢ Partnered with BNP Paribas to provide corporate clients in the UK and Ireland with efficient, reliable and secure SWIFT connectivity via Bottomlineâs SWIFT Access Service. Bottomlineâs SWIFT Access Service connects corporations to the global banking network through a certified SWIFT service that supports all classifications of inbound and outbound SWIFT messages, standards and formats.
â¢ Selected by the Australia and New Zealand Banking Group to provide international, real-time reporting across currencies for corporate customers.
â¢ Chosen by eight leading insurance companies and corporations, including Allianz, First Acceptance, Fremont Insurance, MidWest Insurance, Markel, Ohio Health and Superior Adjusting, to provide SaaS-based technology to automate, manage and control their legal spend.
â¢ Selected by Amec Plc, AXA Assurances, Avery Dennison, BMW Belgium, Chicago Bridge & Iron Company, Federal Express Europe, Fuji Xerox, Hays Specialist Recruitment, Lloydâs Register, McaConnect, Norbert Dentressangle Logistics, Norbert Dentressangle Transport Services, Motorola and Royal Caribbean to provide transaction document automation solutions.
â¢ Added new healthcare customers and expanded existing relationships with organizations including Children's Hospital - Orange County, Clark Memorial Hospital, Driscoll Childrenâs Hospital, El Paso County Hospital District, Exempla Healthcare, Health Management Associates, Jewish Hospital & St. Mary's Healthcare, Johnson & Johnson, Roper St. Francis Healthcare and Sisters of Mercy Health System.
First Quarter Strategic Corporate Highlights
â¢ Announced that Paymode-XÂ®, Bottomlineâs settlement network, reached 150,000 vendors.
â¢ Announced TransformÂ®
Connect as a new product within the transaction banking product suite. This powerful integration tool enables banks to reduce client implementation time and improve the client experience.
â¢ Announced the general availability of a secure, real-time solution for sending and receiving invoices electronically via the global SWIFT network.
Bottomline has presented supplemental non-GAAP financial measures as part of this earnings release. Core net income and core earnings per share are non-GAAP financial measures. The non-GAAP financial measures exclude certain items, specifically amortization of intangible assets, impairment losses on equity investments, equity-based compensation, acquisition-related expenses (including acquisition-related earn-outs) and restructuring related costs.
The presentation of this non-GAAP financial information should not be considered in isolation from, or as a substitute for, the financial results presented in accordance with GAAP. Bottomline believes that these supplemental non-GAAP financial measures are useful to investors because they allow for an evaluation of the company with a focus on the performance of its core operations.
Bottomlineâs executive management team uses these same non-GAAP financial measures internally to assess the ongoing performance of the company. Additionally, the same non-GAAP information is used for planning purposes, including the preparation of operating budgets, and in communications with the board of directors in respect of financial performance. Since this information is not a GAAP measurement of financial performance, there are material limitations to its usefulness on a stand-alone basis, including the lack of comparability of this presentation to the GAAP financial results of other companies.