Bottomline Technologies Reports Record Results For the Second Quarter 2001;
Revenue Increase of 102% Driven by eCommerce Product Suite
Business/Technology Editors
PORTSMOUTH, N.H.--(BUSINESS WIRE)--Jan. 31, 2001--Bottomline
Technologies(R) (NASDAQ:EPAY), the leading provider of Web-enabled
billing, payment and electronic banking solutions, today reported
financial results for the second quarter ended December 31, 2000.
Revenues for the second quarter were $22.3 million, a 102%
increase over the second quarter of fiscal 2000. Revenues for the
quarter reflected the strong demand for the Company's NetTransact,
BankQuest, PayBase and i-Point product offerings. Software license
fees were $7.6 million, a 116% increase over the same period a year
ago.
Net loss for the second quarter, excluding acquisition-related
amortization and stock compensation expense, was approximately
$300,000. On a diluted basis, net loss per share excluding such
charges was $0.02.
During the quarter, operating expenses included
acquisition-related charges of $8.8 million, which represented
amortization of intangible assets and stock compensation charges
associated with stock options assumed in the acquisitions. Including
acquisition-related charges, the net loss for the second quarter was
$9.1 million, or a loss per share of $0.71.
Revenues for the calendar year were $67.8 million, a 66% increase
from calendar year 1999. Excluding acquisition and non-cash charges
related to the issuance of warrants, net income for calendar year 2000
was approximately $500,000.
"In our second fiscal quarter, we finished the calendar year 2000
with our single largest revenue increase and a loss that was narrower
than consensus expectations in terms of earnings per share. This
concluded the strongest twelve months in the company's history and we
are very pleased to deliver these results to our shareholders," said
Dan McGurl, chairman and CEO of Bottomline Technologies. "We have also
successfully completed the integration of our recent acquisitions
which extend our position as a leading global provider of
Internet-based software."
"Our solutions enable the B2B market to migrate from paper-based
systems to Web-enabled invoicing, payments and electronic banking.
This helps organizations to reduce costs, streamline operations and
improve relationships with their trading partners," continued Mr.
McGurl. "Businesses are still overrun with paper and we have an
inevitable automation opportunity in this marketplace. In evaluating
the competitive landscape, we believe that our leading technology and
existing strategic relationships have uniquely positioned us to
capitalize on the opportunity before us."
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Quarterly Highlights
Successful integration of recent acquisitions:
-- Our acquisition of UK-based Checkpoint Holdings, Ltd. has opened a
new distribution channel, expanded our international reach and
increased our capacity to support our channel partners and global
customers.
-- Our Flashpoint, Inc. acquisition has provided Bottomline with
additional development resources to enhance our Web-based products and
support our channel partners.
Enhanced our distribution channel for NetTransact:
-- Licensed NetTransact to Agilera and Magnet Communications in order
to increase ASP hosting capacity through additional strategic
relationships.
-- eCredit.com licensed NetTransact to integrate into their Global
Financing Network and to market the product to their customers,
partners and information providers.
Significant new contracts expanded our roster of over 5,500 worldwide
customers:
-- Royal Bank of Canada implemented BankQuest to provide its corporate
customers with browser-based access to back-office custody
applications.
-- Secured multiple contracts for PayBase WebSeries, which provides
organizations with Internet-based access to our universal payment
engine.
-- Increased international distribution with new contracts from large
organizations including CGNU, the UK's largest insurance group.
-- New PayBase business during the quarter included contracts from
organizations such as Ingram Micro, Yamaha and Ledgent.
Bottomline will be hosting a conference call to discuss its financial
results beginning at 5:00 p.m. on January 31, 2001. Please see the
corresponding advisory issued January 24, 2001 for information on the
call. The call will also be broadcast live at www.bottomline.com and a
replay will be available on the website following the call.
*T
About Bottomline Technologies
Bottomline Technologies(R) (NASDAQ: EPAY) is the leading provider
of Web-enabled billing, payment, and electronic banking solutions for
the business-to-business market. Bottomline's three integrated
e-business offerings enable corporations and financial institutions
worldwide to integrate, automate, and streamline the entire financial
supply chain. PayBase(R) provides a pathway from traditional paper
checks to electronic payments, as well as sophisticated messaging,
remittance, and anti-fraud tools. NetTransact(TM), the Company's
business-to-business bill presentment and payment suite, enables
enterprise billers and their trading partners to electronically
present, adjudicate, and pay bills online. Bottomline's BankQuest(TM)
is a corporate and institutional browser-based electronic banking
platform that provides information reporting and transactional
services for cash management, trade finance, and securities
processing. Today, Bottomline's offerings are utilized by over 5,500
organizations representing every major industry sector. Founded in
1989, Bottomline maintains its corporate headquarters in Portsmouth,
NH and international headquarters in Reading, England. Bottomline also
has satellite offices located in most major cities. For more
information, dial (800) 243-2528 or visit Bottomline on the web at
www.bottomline.com.
Cautionary Language
This announcement contains forward-looking statements that involve
risks and uncertainties, including statements regarding expected
benefits of use of the Company's products and future growth or
results. Actual results may differ materially from the results
predicted and reported results should not be considered as an
indication of future performance. More information about potential
factors that could affect the company's business and financial results
is included in the Company's Annual Report on Form 10-K including
(without limitation) under the captions, "Management's Discussion and
Analysis of Financial Condition and Results of Operations," and
"Factors That May Affect Future Results", which is on file with the
Securities and Exchange Commission (http://www.sec.gov). The
accompanying condensed statements of operations and balance sheets are
an integral part of this announcement.
*T
Bottomline Technologies
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
Three Months Ended
December 31,
2000 1999
Revenues:
Software licenses $ 7,638 $ 3,538
Service and maintenance 9,072 5,186
Equipment and supplies 5,564 2,327
Total revenues 22,274 11,051
Cost of revenues:
Software licenses 366 44
Service and maintenance 4,679 2,343
Equipment and supplies 3,656 1,732
Total cost of revenues 8,701 4,119
Gross profit 13,573 6,932
Operating expenses:
Sales and Marketing:
Sales and
marketing 6,223 3,253
Product development
and engineering:
Product development and
engineering 3,577 1,862
Acquired in-process
research and
development -- 2,600
Stock compensation
expense 109 --
General and
administrative:
General and
administrative 3,829 2,161
Amortization of
intangible assets 8,684 482
Total operating expenses 22,422 10,358
Loss from operations (8,849) (3,426)
Interest income (expense), net (318) 476
Loss before benefit for
income taxes (9,167) (2,950)
Benefit for income taxes (49) (1,180)
Net loss $ (9,118) $ (1,770)
Loss per share:
Basic $ (0.71) $ (0.17)
Diluted $ (0.71) $ (0.17)
Shares used in computing
loss per share:
Basic 12,916 10,700
Diluted 12,916 10,700
Excluding
acquisition-related
charges:
Net income (loss) $ (299) $ 79
Diluted earnings (loss)
per share $ (0.02) $ 0.01
Bottomline Technologies
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
Six Months Ended
December 31,
2000 1999
Revenues:
Software licenses $ 13,334 $ 5,342
Service and maintenance 15,917 9,446
Equipment and supplies 8,980 4,810
Total revenues 38,231 19,598
Cost of revenues:
Software licenses 587 90
Service and maintenance 8,186 4,486
Equipment and supplies 6,253 3,595
Total cost of revenues 15,026 8,171
Gross profit 23,205 11,427
Operating expenses:
Sales and Marketing:
Sales and marketing 12,292 6,062
Product development and engineering:
Product development and engineering 6,461 3,067
Acquired in-process research and
development -- 3,900
Stock compensation expense 146 --
General and administrative:
General and administrative 6,434 4,277
Amortization of intangible assets 12,004 607
Total operating expenses 37,337 17,913
Loss from operations (14,132) (6,486)
Interest income (expense), net (54) 957
Loss before provision (benefit) for
income taxes (14,186) (5,529)
Provision (benefit) for income taxes 1,873 (2,212)
Net loss $(16,059) $ (3,317)
Loss per share:
Basic $ (1.30) $ (0.31)
Diluted $ (1.30) $ (0.31)
Shares used in computing loss
per share:
Basic 12,368 10,635
Diluted 12,368 10,635
Excluding acquisition-related charges:
Net loss $ (1,629) $ (613)
Diluted loss per share $ (0.13) $ (0.06)
Bottomline Technologies
Unaudited Condensed Consolidated Balance Sheets
(in thousands)
December 31, June 30,
2000 2000
Assets
Current assets:
Cash, cash equivalents and short-term
investments $ 10,342 $ 38,514
Accounts receivable 23,402 14,571
Other current assets 6,505 1,760
Total current assets 40,249 54,845
Property and equipment 7,501 5,172
Goodwill and other intangible assets 93,740 8,416
Other assets 3,201 2,847
Total assets $ 144,691 $ 71,280
Liabilities and stockholders' equity
Current liabilities:
Accounts payable and accrued expenses $ 13,001 $ 6,934
Deferred revenue and deposits 10,763 6,034
Other current liabilities 743 901
Short-term debt 20,356 --
Total current liabilities 44,863 13,869
Deferred income taxes payable 886 283
Stockholders' equity
Common stock 13 11
Additional paid-in-capital 122,919 64,914
Deferred Compensation (1,185) --
Accumulated other comprehensive
income (loss) 1,043 (8)
Retained earnings (deficit) (23,848) (7,789)
Total stockholders' equity 98,942 57,128
Total liabilities and stockholders'
equity $ 144,691 $ 71,280
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--30--jr/bos*
CONTACT: Tim Aberle
Director of Investor Relations
603-559-5246
taberle@bottomline.com
KEYWORD: MASSACHUSETTS NEW HAMPSHIRE
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS E-COMMERCE HARDWARE
INTERNET SOFTWARE EARNINGS
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