Wednesday April 26, 6:36 pm Eastern Time
Company Press Release
Fundtech Reports Record Revenue for First Quarter 2000
JERSEY CITY, N.J.--(BUSINESS WIRE)--April 26, 2000--Fundtech Ltd. (Nasdaq: FNDT - news), a leading provider of software solutions for e-commerce and e-banking applications, today announced its financial results for the first quarter ended March 31, 2000. Revenue for the first quarter was $10.0 million, up 27 percent from the first quarter of 1999 and up 32 percent from the fourth quarter of 1999.
The adjusted net loss for the quarter, which excludes acquisition-related amortization charges, was $145,000 or $0.01 per diluted share, compared with an adjusted net profit of $1.9 million, or $0.16 per diluted share, in the first quarter of 1999. Including the amortization of acquisition-related goodwill, the net loss for the first quarter was $748,000, or $0.05 per diluted share, compared with net income of $1.8 million, or $0.16 per diluted share in the same period of 1999.
Software license revenue increased to $5.4 million, or 54 percent of total revenue, from $4.6 million in the first quarter of 1999. Maintenance and Service revenue was up 42 percent to $4.0 million, or 40 percent of total revenue, versus the $2.8 million reported in the same period a year ago. Hardware revenue was $641,000, or six percent of revenue, up from $471,000 in the first quarter of 1999.
``We have clearly regained our momentum and put Y2K concerns behind us,'' said Reuven Ben-Menachem, Chairman and Chief Executive Officer, Fundtech Ltd. ``Our pipeline of new business opportunities continues to grow and we are experiencing strong demand across the board. Our ability to offer a complete end-to-end solution is proving to be a real strength. This quarter we have clearly demonstrated our ability to move up-market and work successfully with the largest banks in the world as evidenced by our contract with ANZ Bank. In addition, we are devoting the development resources necessary to ensure that we remain the leaders in supplying banks with their e-commerce infrastructure.''
Some of the notable developments during the quarter included:
- Landing the largest contract ever with ANZ Bank to provide them
with the ability to create a common worldwide e-payments platform
and offer real-time, automated e-payments services across the
bank's international network.
- Expanding internationally with new contract wins in Sweden,
Switzerland, Germany, France, Israel, Italy and the United
Kingdom.
- Increasing the base of Internet banking customers to 37.
- Adding Bank of New York to Fundtech's roster of large money center
bank customers for its PAYplus CLS product, bringing the total
number of CLS contract wins to four.
About Fundtech
Fundtech is a leading provider of software solutions that facilitate e-commerce and e-banking by enabling businesses and their banks to electronically manage cash, process payments and transfer funds. The Company's client/server and Internet software products automate the process of transferring funds among corporations, banks and clearance systems, and enables businesses to manage global cash positions efficiently and in real-time. Its solutions have been sold to more than 650 financial institutions around the globe.
For additional information and to order investor relations materials, please see Fundtech's Web site at www.fundtech.com.
Certain statements contained herein, including, among others, statements regarding the (i) development of the company's services, markets, product functionality and year 2000 compliance, (ii) future demand for the company's products and services (iii) the industry in which the company operates (including the company's customers and competitors) (iv) the company's plans, goals, strategies, and financial projections, and (v) other statements regarding matters that are not historical facts, are forward-looking statements. Actual results relating to our company (in particular) or to market and economic circumstances and conditions (in general) may differ materially from those forward-looking statements or implications drawn therefrom. Such forward-looking statements are subject to factors, risks and uncertainties including, but not limited to, variability of quarterly operating results, the company's ability to develop and market effectively products that are acceptable to our customers, the financial strength and other conditions affecting purchase decisions by companies in the financial services industry,. the company's ability to successfully manage growth and undertake and integrate strategic acquisitions, the company's dependence on key personnel, risks associated with the company's strategic partnerships, and other risk factors listed from time to time in the company's filing reports.
You should also refer to the risk factors contained in pages 7 through 17, of our April 30, 1999 prospectus.
You should also keep in mind that the market, industry and economic data and forecasts included in this release have generally been obtained from independent sources. Although we believe that these sources are reliable, we have not independently verified the data and we cannot assure you of the accuracy or completeness thereof.
Fundtech Ltd. and Subsidiaries
Consolidated Statements of Operations
(in thousands of U.S. dollars, except per share data)
Three Months Ended
March 31,
2000 1999
----------- -----------
Revenue
Software licenses $5,381 $4,622
Maintenance and services fees 3,982 2,808
Hardware sales 641 471
----------- -----------
Total revenue 10,004 7,901
----------- -----------
Cost of revenue
Software licenses costs 31 30
Maintenance and services costs 2,716 1,649
Hardware costs 507 372
----------- -----------
Total cost of revenue 3,254 2,051
----------- -----------
Gross Profit 6,750 5,850
----------- -----------
Operating expenses:
Software development 4,175 2,337
Selling and marketing 2,466 1,095
Amortization of acquisition-related
Intangibles assets 603 78
General and administrative 1,655 670
----------- -----------
Total Operating Costs 8,899 4,180
----------- -----------
Operating Income (loss) (2,149) 1,670
Financial Income 1,401 124
----------- -----------
Net Income (loss) ($748) $1,794
=========== ===========
Net income (loss) per share:
Net income (loss) used in computing
income per share ($748) $1,794
Basic income (loss) per share ($0.05) $0.17
Diluted income (loss) per share ($0.05) $0.16
Shares used in computing :
Basic income (loss) per share 13,987,202 10,845,658
Diluted income (loss) per share 13,987,202 11,554,345
Adjusted net income per share ( * ) :
Adjusted net income used in
computing income per share ($145) $1,872
Diluted adjusted income per share ($0.01) $0.16
Shares used in computing :
Diluted income per share 13,987,202 11,554,345
( * ) the above presentation of adjusted net income per share has been
adjusted to exclude the effects of amortization of
acquisition-related intangible assets.
Fundtech Ltd. and Subsidiaries
Consolidated Balance Sheets
(in thousands of U.S. dollars, except per share data)
As of March 31, As of Dec. 31,
2000 1999
--------------- --------------
Current Assets
Cash & cash equivalents $ 42,745 $ 41,493
Short-term investments 41,478 41,023
Trade receivables, net 15,512 11,753
Other current assets 1,955 1,868
Total current assets 101,690 96,137
Long term trade receivables 1,841 1,033
Fixed assets, net 8,169 7,941
Other assets, net 18,808 19,798
Total assets $ 130,508 $ 124,909
Liabilities and Shareholders'
Equity
Current liabilities
Trade payables $ 1,943 $ 1,528
Deferred revenues and accrued
expenses 10,496 4,593
Total current liabilities 12,439 6,121
Other liabilities 229 194
Shareholders' equity
Share capital 42 42
Additional paid-in capital 138,899 137,997
Accumulated other comprehensive loss (2,080) (1,156)
Deferred compensation (131) (147)
Accumulated Deficit (18,890) (18,142)
Total shareholders' equity 117,840 118,594
Total Liabilities and Shareholders'
Equity $ 130,508 $ 124,909
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Contact:
Fundtech Ltd.
Michael Carus
(201) 946-1100
michaelc@fundtech.com
or
CMG International
Claudia Gatlin
(212) 830-9080
cmginternational@msn.com
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