**DGIN** Reports Third Quarter Results; Record Quarterly Revenues of
$4.7 Million, Up 115%
CALABASAS, Calif., Oct. 21 /PRNewswire/ -- Digital Insight Corporation
(Nasdaq: DGIN), the leading provider of Internet banking solutions for
community financial institutions, today announced record results for the third
quarter ending September 30, 1999.
Revenues for the third quarter were $4.7 million versus $2.2 million for
the same period last year, which represents a 115% increase. Net loss for the
quarter excluding the amortization of stock-based compensation was
$2.2 million or a loss of $0.38 per share based on the weighted average number
of 5.6 million common shares outstanding. Assuming the conversion of the
company's preferred stock at the respective dates of issuance, net loss
excluding amortization of stock-based compensation would have been $0.21 per
share, based on the weighted average number of 10.4 million common shares
outstanding.
During the corresponding quarter in 1998, the net loss was $1.0 million,
excluding the amortization of stock-based compensation or $0.19 per share
based on the weighted average number of 5.2 million common shares outstanding.
Assuming the conversion of preferred stock at the respective dates of
issuance, net loss excluding amortization of stock-based compensation would
have been $.011 per share, based on the weighted average number of 9.1 million
common shares outstanding.
During the quarter, Digital Insight signed a total of 40 new AXIS(TM)
Internet Banking and 11 new AXIS Cash Management contracts. At September 30,
1999 the Company had contracted with a total of 287 institutions for AXIS
Internet Banking and 30 institutions for AXIS Cash Management. There were
537,000 active AXIS Internet Banking end-users at the end of the quarter, up
154% from a year earlier and 31% from the prior quarter. Total potential
end-users of contracted AXIS Internet Banking institutions was 10.7 million
versus 4.9 million a year earlier. End-user penetration of live AXIS Internet
Banking institutions was 6.5% at the end of the quarter versus 4.3% a year
earlier and 6.1% in the prior quarter.
John Dorman, President and CEO, commented on the results, "We are
extremely pleased on all fronts with the third quarter results. We exceeded
our revenue goals for the quarter, signed a record number of new Internet
Banking and Cash Management contracts, surpassed a half million end users and
achieved even higher levels of end-user penetration." Dorman continued, "In
addition, we completed an initial public offering of the company's common
stock on October 1. The approximately $54 million of net proceeds provides us
with an extremely strong balance sheet to continue our leadership position in
the Internet banking market."
About Digital Insight
Digital Insight is the leading provider of real time Internet banking
services to community financial institutions. Digital Insight offers these
institutions a cost-effective, outsourced service, branded in the
institution's name, which enables them to provide Internet-based banking to
their individual and commercial customers. The Company also provides a target
marketing module to facilitate the sale of additional financial services to
end users, as well as customized website design and hosting.
The Company's AXIS(TM) architecture is highly secure and scalable. AXIS
is designed to communicate in real time with the institution's core data
processing system to allow transactions conducted on the website to be posted
immediately. AXIS Internet Banking solution delivers a full range of Internet
branch capabilities, including bill payment, to the financial institution's
retail customers. AXIS Cash Management provides a comprehensive set of
Internet banking functionality to the institution's business customers.
Over 400 community financial institutions have contracted with us for one
or more of our products and services. Over a half million customers of these
institutions are actively using the Internet banking solution. For more
information about Digital Insight, go to www.digitalinsight.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995: This release contains a discussion of the Company's market
leadership position and other topics which may contain forward-looking
statements that involve risks and uncertainties. Important factors which
could cause actual results to differ materially from those in the
forward-looking statements are detailed in the Company's filings with the
Securities and Exchange Commission, including the Company's prospectus related
to its initial public offering that was filed with the SEC on October 1, 1999
and the Company's latest 10-Q's and 10-K's which may be filed from time to
time.
Contact: Kevin McDonnell, Chief Financial Officer of Digital Insight
Corporation, 818-871-0000, ext. 350, kevin.mcdonnell@digitalinsight.com.
Digital Insight Corporation
Income Statement (unaudited)
(in thousands, except per share data)
Three Months Ended Nine Months Ended
Sept. 30 Sept. 30
1999 1998 1999 1998
Revenues
Implementation fees $1,286 $543 $2,952 $1,803
Service fees 3,417 1,641 8,844 3,878
Total revenues 4,703 2,184 11,796 5,681
Cost of revenues
Implementation 840 420 2,081 1,115
Service 1,906 1,019 5,408 2,374
Total cost of revenues 2,746 1,439 7,489 3,489
Gross profit 1,957 745 4,307 2,192
Operating expenses
Sales, general
and administrative 2,889 1,114 6,498 2,888
Research and development 1,268 662 3,061 1,840
Amortization of
stock-based
compensation 329 147 893 395
Total operating expenses 4,486 1,923 10,452 5,123
Loss from operations (2,529) (1,178) (6,145) (2,931)
Other income
(expense), net 50 68 111 178
Net loss $(2,479) $(1,110) $(6,034) $(2,753)
Basic and diluted
net loss per share $(0.44) $(0.21) $(1.10) $(0.54)
Shares used in
computing basic
and diluted net
loss per share 5,638 5,177 5,490 5,072
Excluding stock based compensation:
Net Loss $(2,150) $(963) $(5,141) $(2,358)
Basic and diluted
net loss per share $(0.38) $(0.19) $(0.94) $(0.46)
Pro-forma loss
per share (a) $(0.21) $(0.11) $(0.52) $(0.29)
Shares used in
computing pro forma
net loss per share 10,414 9,109 9,817 8,251
(a) Assumes conversion of Company's mandatorily redeemable convertible
preferred stock as of date of issuance. All preferred stock was converted
to common stock upon the close of the Company's initial public offering on
October 6, 1999.
Key Operating Data
Sept. 30 Sept. 30
1999 1998
End Users 537,000 211,000
Live Internet Banking Sites 210 120
Internet Banking Penetration
at Live Sites 6.5% 4.3%
Total Internet Banking Contracts 287 178
Potential Internet Banking
End Users (000) 10,700 4,900
SOURCE Digital Insight Corporation
-0- 10/21/1999
/CONTACT: Kevin McDonnell, Chief Financial Officer of Digital Insight
Corporation, 818-871-0000, ext. 350, kevin.mcdonnell@digitalinsight.com/
/Web site: digitalinsight.com
(DGIN)
CO: Digital Insight Corporation
ST: California
IN: MLM FIN
SU: ERN
*** end of story *** |
