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InteliData Announces Q2 2001 Results and Recent Major Bank Contracts
RESTON, Va.--(BUSINESS WIRE)--Aug. 8, 2001--
InteliData on target with second quarter 2001 revenues of $4.4 million
InteliData licensed Bill Payment Warehouse product to two top 10 banks
with over 20 million combined potential end users
InteliData Technologies Corp. (Nasdaq:INTD), a pioneer in electronic banking and bill payment technology, today reported its financial results for the three-month period ended June 30, 2001, and discussed the current business outlook. Highlights since the end of the first quarter include:
Financial Highlights:
-- Second quarter 2001 revenue grew 38% from the previous quarter
and 263% from the second quarter of 2000.
-- Pro forma operating losses declined $1.7 million or 21% from
the previous quarter.
-- Company on track for previous guidance of $18-$21 million in
2001 revenues and for profitability in the second half of
2002.
Business Highlights:
-- Two top 10 financial institutions with combined assets over
450 billion licensed and are currently implementing
InteliData's Bill Payment Warehouse solution. As a component
of the banks' EBPP offerings, it will be made available to
these banks' combined 20+ million potential end users. Along
with Citibank and Bank of America, these two new customers
bring the Company's total of top 10 bank customers to four,
all with recurring revenues.
-- Other customer wins in the quarter include Emigrant Savings
Bank's selection of InteliData for its Internet banking
offerings, and Fidelity National's choice of InteliData to
help its clients manage and review their credit card accounts.
-- InteliData and Spectrum EBP, a bank-centric payment system
utility founded by J.P. Morgan Chase & Co. (JPM), First Union
Corporation (FTU) and Wells Fargo & Company (WFC), signed a
"certified provider" agreement for InteliData to certify its
InteliWorks(TM)CSP Server to connect banks to the Spectrum
electronic bill presentment and payment network.
Commenting on the Company's results, InteliData President and CEO, Al Dominick, said, "Our recurring revenue model is continuing to show its strength based on the growth of our ASP business, and our bill payment expertise continues to be validated by large financial institutions joining our client roster. If you believe that a growing portion of the 18 billion annual recurring consumer bills will be paid electronically, and that consumers are most likely to look to their primary financial institution to provide these services, then you can see why this is such an exciting time for InteliData and our position in the EBPP industry."
Dominick continued, "Another watershed event on the horizon is the launch this Fall of InteliWorks(TM), our next generation technology platform based on J2EE architecture. The initial applications will include Bill Presentment Aggregation, Bill Payment and Payment Network Connectivity. Our plans include a national media tour kicking off in New York, and joint marketing events with Spectrum EBP including an intensive marketing campaign aimed at existing/potential Spectrum member banks."
Revenues from continuing operations for the three-month period were $4,355,000 compared to $1,199,000 for the same period last year. The Q2 2001 results include those of Home Account Network, acquired on January 11, 2001. Excluding non-cash charges related to the amortization of deferred stock-based compensation, the amortization of acquisition-related intangible assets, and depreciation and amortization charges, pro forma operating loss from continuing operations for the quarter was $(6,222,000) or $(0.14) per share on 45.2 million weighted-average common shares outstanding. Net loss for the quarter including all non-cash charges was $(8,295,000) or $(0.18) per share compared to $(4,845,000) or $(0.13) per share for Q2 2000.
The Company's cash and investments on June 30, 2001 were $17 million. Al Dominick added, "We maintain our previous guidance for this year's revenues and earnings estimates. We are forecasting third quarter revenues of approximately $5 million, and a decreasing burn rate due to our on-going expense management program to keep expenses aligned with revenues."
Attached are financial statements comparing results for the three months and six months ended June 30, 2001 to the same periods for 2000. The financial results for the six months ended June 30, 2001 reflect adjustments made to the first quarter results. The Form 10-Q for the period ended March 31, 2001 will be amended to include approximately $1,075,000 of additional operating expenses that had been previously accounted for as acquisition related costs associated with the purchase of Home Account in January of this year. These charges, which will change the Q101 previously reported net loss from
(0.18) to $(0.21), represent costs associated with employees terminated as a result of the merger and will not be on-going expenses for the Company.
InteliData will hold a conference call today at 4:30 p.m. Eastern time. Investors can access the call by dialing 1-800-937-4597. International callers dial (415) 904-2462. A replay can be accessed for 72 hours beginning at 6:30 p.m. August 8, by dialing 800-633-8284 and entering code 19357955. Replays will also be available at InteliData's Web site www.intelidata.com and www.streetfusion.com for 30 days.
About InteliData
InteliData provides Internet banking and Electronic Bill Payment and Presentment (EBPP) technology and services to banks, credit unions, and financial institution processors. InteliData's EBPP products offer banks and other financial institutions an end-to-end solution for creating e-bills for billers, distributing e-bills and e-payments through multiple delivery channels, delivering e-bills to consumers, and enabling payment of bills through multiple payment processors utilizing OFX and IFX messaging standards. InteliData's Internet banking products provide large financial institutions throughout the U.S. with proven scalability, flexibility and security in supplying real-time, Internet based banking services to their customers. For more information about InteliData, visit the company's Web site at intelidata.com
"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995:
This release contains forward looking statements that are subject to risks and uncertainties, including, but not limited to, the ability of the Company to successfully assimilate and retain the employees of Home Account and integrate the products of Home Account with those of the Company, the risks of not realizing the cost savings anticipated by eliminating personnel and facilities, the Company's ability to retain customers and subscribers as a result of the acquisition of Home Account, the risk of anticipated revenues following the acquisition of Home Account not meeting the Company's expectations, the ability of the Company to complete product implementations in required time frames and the Company's ability to increase its recurring revenues and profits through its ASP business model, the impact of competitive products, pricing pressure, product demand and market acceptance risks, pace of consumer acceptance of home banking and reliance on the Company's bank clients to increase usage of Internet banking by their customers, mergers and acquisitions, risk of integration of the Company's technology by large software companies, the ability of financial institution customers to implement applications in the anticipated time frames or with the anticipated features, functionality or benefits, reliance on key strategic alliances and newly emerging technologies, the ability of the Company to leverage its Spectrum relationship into new business opportunities in the EBPP market, the on-going viability of the mainframe marketplace and demand for traditional mainframe products, the ability to attract and retain key employees, the availability of cash for long-term growth, product obsolescence, ability to reduce product costs, fluctuations in operating results, ability to continue funding operating losses, delays in development of highly complex products and other risks detailed from time to time in InteliData filings with the Securities and Exchange Commission. These risks could cause the Company's actual results for 2001 and beyond to differ materially from those expressed in any forward looking statements made by, or on behalf of, InteliData. InteliData is not under any obligation (and expressly disclaims an obligation to) update or alter its forward-looking statements, whether as a result of new information or otherwise.
INTELIDATA TECHNOLOGIES CORPORATION
PRO FORMA (CASH) OPERATING LOSS
FOR THE THREE MONTH-PERIODS ENDED JUNE 30, AND MARCH 31, 2001
3 months 3 months
ended ended
6/30/2001 3/31/2001
--------- ---------
Revenues 4,355 3,151
Cost of revenues 2,117 1,902
Operating expenses 10,908 11,048
------- -------
Operating Loss (8,670) (9,799)
------- -------
Less non-cash items:
Amortization of goodwill 1,352 1,176
Depreciation and amortization 459 341
Deferred compensation expense 637 365
------- -------
Total of non-cash items 2,448 1,882
------- -------
Pro forma operating loss (6,222) (7,917)
======= =======
Basic and diluted weighted-average
common shares outstanding 45,249 44,580
======= =======
Pro forma basic and diluted earnings
per common share $ (0.14) $ (0.18)
======= =======
INTELIDATA TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
JUNE 30, 2001 AND DECEMBER 31, 2000
(in thousands, except share data; unaudited)
2001 2000
--------- ---------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $11,582 $27,255
Restricted cash -- 440
Investments 5,252 10,217
Accounts receivable, net
of allowance for doubtful
accounts 5,279 1,486
Other receivables 1,258 83
Prepaid expenses and other
current assets 634 320
--------- ---------
Total current assets 24,005 39,801
NONCURRENT ASSETS
Property and equipment,
net 4,732 3,282
Goodwill, net 33,819 --
Other assets 195 195
--------- ---------
TOTAL ASSETS $62,751 $43,278
========= =========
LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES
Accounts payable $5,302 $4,288
Accrued expenses and
other liabilities 4,255 3,651
Deferred revenues 3,636 1,014
Short-term capital lease
obligations 19 --
Other liabilities 143 --
Net liabilities of
discontinued operations 323 455
--------- ---------
TOTAL CURRENT LIABILITIES 13,678 9,408
Net liabilities of
discontinued operations 300 300
Other liabilities 69 --
--------- ---------
TOTAL LIABILITIES 14,047 9,708
--------- ---------
COMMITMENTS AND
CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock, $0.001
par value; authorized
5,000,000 shares; no
shares issued and
outstanding -- --
Common stock, $0.001 par
value; authorized
60,000,000 shares; issued
46,787,590 shares in 2001
and 39,320,609 shares in
2000; outstanding 46,081,
246 shares in 2001 and
38,629,897 shares in 2000 47 39
Additional paid-in capital 296,380 261,552
Treasury stock, at cost:
706,344 shares in 2001
and 690,712 shares in
2000 (2,163) (2,123)
Deferred compensation (2,855) (1,375)
Accumulated other
comprehensive (loss)
income (116) 494
Accumulated deficit (242,589) (225,017)
--------- ---------
TOTAL STOCKHOLDERS' EQUITY 48,704 33,570
--------- ---------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $62,751 $43,278
========= =========
INTELIDATA TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
THREE AND SIX MONTHS ENDED JUNE 30, 2001 AND 2000
(in thousands, except per share data; unaudited)
Three months ended Six months ended
June 30, June 30,
------------------ ----------------
2001 2000 2001 2000
---- ---- ---- ----
Revenues
Software $239 $165 $408 $601
Consulting and
services 4,116 819 7,098 1,913
Leasing and other -- 215 -- 469
------- ------- ------- -------
Total revenues 4,355 1,199 7,506 2,983
------- ------- ------- -------
Cost of revenues
Software -- -- 5 --
Consulting and
services 2,117 933 4,014 1,507
------- ------- ------- -------
Total cost of
revenues 2,117 933 4,019 1,507
------- ------- ------- -------
Gross profit 2,238 266 3,487 1,476
Operating expenses
General and
administrative 2,669 1,449 5,492 2,850
Selling and
marketing 2,632 1,816 5,151 3,140
Research and
development 4,255 3,450 8,785 5,627
Amortization of
goodwill 1,352 -- 2,528 --
------- ------- ------- -------
Total operating
expenses 10,908 6,715 21,956 11,617
------- ------- ------- -------
Operating loss (8,670) (6,449) (18,469) (10,141)
Realized gains on
sales of
investments -- 1,387 1,130 43,991
Unrealized gain
(loss) on Sybase
warrants 209 -- (714) --
Other income
(expenses), net 166 168 481 320
------- ------- ------- -------
Income (loss)
before income
taxes (8,295) (4,894) (17,572) 34,170
Provision (benefit)
for income taxes -- (100) -- 690
------- ------- ------- -------
Income (loss) from
continuing
operations (8,295) (4,794) (17,572) 33,480
Income (loss) from
discontinued
operations of
Caller ID leasing,
net of income taxes -- (51) -- 366
------- ------- ------- -------
Net income (loss) $(8,295) $(4,845) $(17,572) $33,846
======= ======= ======= =======
Basic earnings per
common share
Income (loss) from
continuing
operations $(0.18) $(0.13) $(0.39) $0.88
Income (loss) from
discontinued
operations 0.00 0.00 0.00 0.01
------- ------- ------- -------
Net income (loss) $(0.18) $(0.13) $(0.39) $0.89
======= ======= ======= =======
Diluted earnings
per common share
Income (loss) from
continuing
operations $(0.18) $(0.13) $(0.39) $0.82
Income (loss) from
discontinued
operations 0.00 0.00 0.00 0.01
------- ------- ------- -------
Net income (loss) $(0.18) $(0.13) $(0.39) $0.83
======= ======= ======= =======
Basic
weighted-average
common shares
outstanding 45,249 38,173 44,758 38,082
======= ======= ======= =======
Diluted
weighted-average
common shares
outstanding 45,249 38,173 44,758 40,926
======= ======= ======= =======
CONTACT:
InteliData Technologies Corp.
Media Relations: Julie Lewis
Investor Relations: Deirdre Skolfield
703/259-3000
KEYWORD: VIRGINIA
BW2456 AUG 08,2001
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