Fundtech Reports Fiscal 1998 First Quarter Results - Apr. 21
JERSEY CITY, N.J., April 21 /PRNewswire/ -- Fundtech Ltd. (Nasdaq: FNDTF - news), a leading provider of electronic commerce payments software, announced today their unaudited financial results for the first quarter ended March 31, 1998.
Revenues for the first quarter of 1998 increased 243% to $3,028,000 from $882,000 in the first quarter a year ago. Net income for the 1998 first quarter totaled $231,000, or $0.03 per share, compared to a loss of $720,000 for the year's comparable period. The increase in revenue is attributable to continued strong demand in the United States for the Company's funds transfer software and related services. Revenue growth also resulted from the delivery of new product offerings such as the Company's international payments software and treasury management software.
The gross profit for the first quarter 1998 was $2,390,000, or 79% of revenues, up from $528,000 or 60% in the first quarter 1997. Gross profit improvement resulted primarily from the increase in margins on the Company's software product offerings.
President and Chief Executive Officer, Reuven Ben-Menachem commented, "This quarter, our first quarter as a public company, showed significant growth for Fundtech and solidifies our position as a leading vendor in the funds transfer systems market. We are positioning ourselves for the future by opening new channels of distribution, while developing and acquiring new product offerings that meet our customers' needs."
On April 20, 1998, Fundtech announced the acquisition of CheckFree Corporation's cash management and wire transfer businesses for $18.25 million.
During the first quarter the Company raised net cash proceeds of approximately $31,300,000 from the initial public offering of 2,587,500 ordinary shares. In addition to these shares, 862,500 shares were sold by selling shareholders. ''We were very pleased with the reception of the IPO and are proud of our results in the first quarter in the public domain,'' added Michael Carus, Senior Vice President and CFO.
Fundtech Ltd. designs, develops, markets and supports a suite of mission-critical, client/server software products which enable financial institutions and large business enterprises to electronically process payments, transfer funds and manage their cash positions. The Company's products are among the most technologically advanced and cost-effective electronic payments, funds transfer and cash management solutions. The Company's proprietary innovative software architecture based on the Windows NT operating system, provides modular, scaleable, and secure solutions that, during the past three years, have been sold to more than 100 financial institutions including Fidelity Investments, Swedbank, Visa International and Washington Mutual. |
