Bottomline Technologies Reports Record Quarterly and Annual Results; New
Products Drive Acceleration of Revenue Growth
PORTSMOUTH, N.H., Aug 9, 2000 (BUSINESS WIRE) -- Bottomline Technologies(R)
(NASDAQ:EPAY), the leading provider of Web-enabled billing, payment and
electronic banking solutions, today reported financial results for the fourth
quarter and fiscal year ended June 30, 2000.
Revenues for the fourth quarter were a record $15.4 million, a 44% increase over
the fourth quarter of fiscal 1999. Software license fees were a record $8.2
million, a 92% increase over the fourth quarter of fiscal 1999. Revenues for the
quarter reflected the strong demand for the Company's NetTransact, BankQuest and
PayBase product offerings. During the quarter the Company announced significant
contracts with Citibank, FleetBoston Financial, UPS Capital, United Technologies
Corporation, and Royal Bank of Canada.
Pro forma net income for the fourth quarter, excluding non-recurring charges and
acquisition-related amortization, was $1.0 million. On a diluted basis, pro
forma earnings per share were $0.09. During the quarter the Company issued
warrants to two strategic partners. In connection with the issuance of the
warrants the Company recorded a non-recurring non-cash charge of $11.9 million.
Operating expenses recorded during the fourth quarter also included $880,000 of
amortization of acquisition-related intangible assets. Including non-recurring
charges and acquisition-related amortization, the net loss for the fourth
quarter was $11.5 million, or a loss per share of $1.05.
Revenues for the fiscal year were $49.1 million and pro forma net income,
excluding non-recurring charges and acquisition-related amortization, was $1.5
million. On a diluted basis, pro forma earnings per share for the fiscal year
were $0.13.
During the year, operating expenses included amortization of acquisition related
intangible assets of $2.3 million, non-recurring charges of $3.9 million related
to in-process research and development charges in connection with acquisitions,
and the non-recurring expense associated with the issuance of warrants described
above. Including non-recurring charges and acquisition- related amortization,
the net loss for the fiscal year was $14.3 million, or a loss per share of
$1.33.
The Company had cash, cash equivalents and short-term investments of $38.5
million, working capital of $43.1 million and no debt at June 30, 2000.
"This has been an excellent year for our company and we are very proud of our
continued success and the results we have delivered for our shareholders. During
the fourth quarter we produced strong operating profits driven by acceleration
in our revenue growth," said Dan McGurl, president and chief executive officer.
"Bottomline is currently the strongest it has been in its 11-year history and we
are excited about the demand for our products going forward."
Highlights of Fiscal Year 2000
Completed three successful acquisitions:
-- NetTransact acquisition from The Northern Trust Company provided Bottomline
with the first electronic bill presentment and payment (EBPP) software developed
exclusively for the B2B market.
-- Integrated Cash Management acquisition provided Bottomline with the BankQuest
product and strong Web-based banking expertise.
-- OLC Software acquisition added the SmARt Cash product to Bottomline's
comprehensive suite of eBusiness tools.
Secured significant new customers and channel partners:
-- Forged business relationships with Citibank (NYSE: C), FleetBoston Financial
(NYSE: FBF), UPS Capital (NYSE: UPS) and The Northern Trust Company (NYSE: NTRS)
as channel partners for our NetTransact product.
-- United Technologies Corporation, UTC (NYSE: UTX), licensed NetTransact for
implementation across all of its subsidiaries after a successful pilot program
with its Hamilton Sundstrand subsidiary. UTC also made a $10 million equity
investment in Bottomline.
-- Developed a strategic partnership with Princeton eCom as an ASP hosting
partner to market NetTransact as a core product in its eCommerce offering.
-- Royal Bank of Canada selected Bottomline's BankQuest product to expand its
custody and trade processing services to a browser-based channel.
-- Many significant organizations were added to Bottomline's list of over 2,500
PayBase customers, expanding Bottomline's reach to over 50 of the Fortune 100
companies, including Texaco, American Express and Harvard University.
Introduced new products and enhancements:
-- Launched NetTransact to provide the B2B marketplace with a comprehensive EBPP
solution to reduce costs, streamline operations and improve cash flow.
-- Released BankQuest 2.0 to allow banks to give their corporate customers
Internet-based access to back office banking applications such as cash
management, trade finance and securities processing.
-- Introduced SmARt Cash to provide banks and corporations with improved
efficiency in matching remittance advice with payments.
-- Developed significant enhancements to PayBase Web Series, which provides
corporations with Web-access to a universal payment engine.
"The projected growth in electronic commerce will accelerate the need to further
automate the financial infrastructure supporting eBusiness. In most countries of
the world invoices and payments are largely paper-based behind these
transactions. Automating these transactions through electronic bill presentment
and payment (EBPP) represents an enormous opportunity to accelerate growth for
Bottomline," continued Dan McGurl. "We believe that our channel partnerships and
technology have provided us with a first mover advantage and clear leadership
position in this market. In the coming year we will continue to invest in
technology and expand our global presence in this market."
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
(COMTEX) B: Bottomline Technologies Reports Record Quarterly and Annu
B: Bottomline Technologies Reports Record Quarterly and Annual Results; New
Products Drive Acceleration of Revenue Growth
PORTSMOUTH, N.H., Aug 9, 2000 (BUSINESS WIRE) -- Bottomline Technologies(R)
(NASDAQ:EPAY), the leading provider of Web-enabled billing, payment and
electronic banking solutions, today reported financial results for the fourth
quarter and fiscal year ended June 30, 2000.
Revenues for the fourth quarter were a record $15.4 million, a 44% increase over
the fourth quarter of fiscal 1999. Software license fees were a record $8.2
million, a 92% increase over the fourth quarter of fiscal 1999. Revenues for the
quarter reflected the strong demand for the Company's NetTransact, BankQuest and
PayBase product offerings. During the quarter the Company announced significant
contracts with Citibank, FleetBoston Financial, UPS Capital, United Technologies
Corporation, and Royal Bank of Canada.
Pro forma net income for the fourth quarter, excluding non-recurring charges and
acquisition-related amortization, was $1.0 million. On a diluted basis, pro
forma earnings per share were $0.09. During the quarter the Company issued
warrants to two strategic partners. In connection with the issuance of the
warrants the Company recorded a non-recurring non-cash charge of $11.9 million.
Operating expenses recorded during the fourth quarter also included $880,000 of
amortization of acquisition-related intangible assets. Including non-recurring
charges and acquisition-related amortization, the net loss for the fourth
quarter was $11.5 million, or a loss per share of $1.05.
Revenues for the fiscal year were $49.1 million and pro forma net income,
excluding non-recurring charges and acquisition-related amortization, was $1.5
million. On a diluted basis, pro forma earnings per share for the fiscal year
were $0.13.
During the year, operating expenses included amortization of acquisition related
intangible assets of $2.3 million, non-recurring charges of $3.9 million related
to in-process research and development charges in connection with acquisitions,
and the non-recurring expense associated with the issuance of warrants described
above. Including non-recurring charges and acquisition- related amortization,
the net loss for the fiscal year was $14.3 million, or a loss per share of
$1.33.
The Company had cash, cash equivalents and short-term investments of $38.5
million, working capital of $43.1 million and no debt at June 30, 2000.
"This has been an excellent year for our company and we are very proud of our
continued success and the results we have delivered for our shareholders. During
the fourth quarter we produced strong operating profits driven by acceleration
in our revenue growth," said Dan McGurl, president and chief executive officer.
"Bottomline is currently the strongest it has been in its 11-year history and we
are excited about the demand for our products going forward."
Highlights of Fiscal Year 2000
Completed three successful acquisitions:
-- NetTransact acquisition from The Northern Trust Company provided Bottomline
with the first electronic bill presentment and payment (EBPP) software developed
exclusively for the B2B market.
-- Integrated Cash Management acquisition provided Bottomline with the BankQuest
product and strong Web-based banking expertise.
-- OLC Software acquisition added the SmARt Cash product to Bottomline's
comprehensive suite of eBusiness tools.
Secured significant new customers and channel partners:
-- Forged business relationships with Citibank (NYSE: C), FleetBoston Financial
(NYSE: FBF), UPS Capital (NYSE: UPS) and The Northern Trust Company (NYSE: NTRS)
as channel partners for our NetTransact product.
-- United Technologies Corporation, UTC (NYSE: UTX), licensed NetTransact for
implementation across all of its subsidiaries after a successful pilot program
with its Hamilton Sundstrand subsidiary. UTC also made a $10 million equity
investment in Bottomline.
-- Developed a strategic partnership with Princeton eCom as an ASP hosting
partner to market NetTransact as a core product in its eCommerce offering.
-- Royal Bank of Canada selected Bottomline's BankQuest product to expand its
custody and trade processing services to a browser-based channel.
-- Many significant organizations were added to Bottomline's list of over 2,500
PayBase customers, expanding Bottomline's reach to over 50 of the Fortune 100
companies, including Texaco, American Express and Harvard University.
Introduced new products and enhancements:
-- Launched NetTransact to provide the B2B marketplace with a comprehensive EBPP
solution to reduce costs, streamline operations and improve cash flow.
-- Released BankQuest 2.0 to allow banks to give their corporate customers
Internet-based access to back office banking applications such as cash
management, trade finance and securities processing.
-- Introduced SmARt Cash to provide banks and corporations with improved
efficiency in matching remittance advice with payments.
-- Developed significant enhancements to PayBase Web Series, which provides
corporations with Web-access to a universal payment engine.
"The projected growth in electronic commerce will accelerate the need to further
automate the financial infrastructure supporting eBusiness. In most countries of
the world invoices and payments are largely paper-based behind these
transactions. Automating these transactions through electronic bill presentment
and payment (EBPP) represents an enormous opportunity to accelerate growth for
Bottomline," continued Dan McGurl. "We believe that our channel partnerships and
technology have provided us with a first mover advantage and clear leadership
position in this market. In the coming year we will continue to invest in
technology and expand our global presence in this market."
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 on-line. 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 2,500
organizations representing every major industry sector. Founded in 1989,
Bottomline maintains its headquarters in Portsmouth, NH and has satellite
offices located in most major cities. For more information, dial (800) 243-2528
or visit Bottomline on the web at bottomline.com.
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.
Bottomline Technologies
Condensed Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Three Months Ended
June 30,
2000 1999
Revenues:
Software licenses $ 8,190 $ 4,261
Service and maintenance 4,627 3,543
Equipment and supplies 2,597 2,935
Total revenues 15,414 10,739
Cost of revenues:
Software licenses 380 37
Service and maintenance 2,563 1,353
Equipment and supplies 1,878 2,239
Total cost of revenues 4,821 3,629
Gross profit 10,593 7,110
Operating expenses:
Sales and marketing 4,218 3,178
Product development and engineering 3,058 1,050
General and administrative 2,045 1,247
Expense associated with warrants issued 11,902
Amortization of intangible assets 880
Total operating expenses 22,103 5,475
Income (loss) from operations (11,510) 1,635
Interest income, net 448 466
Income before provision (11,062) 2,101
for income taxes
Provision for income taxes 441 840
Net income (loss) $(11,503) $ 1,261
Earnings (loss) per share available
to common stockholders:
Basic $ (1.05) $ 0.12
Diluted $ (1.05) $ 0.11
Shares used in computing earnings
(loss) per share available to common
stockholders:
Basic 10,951 10,455
Diluted 10,951 11,710
Excluding non-recurring and
acquisition-related charges:
Pro forma net income $ 1,032 $ 1,261
Pro forma diluted earnings per
share available to common stockholders $ 0.09 $ 0.11
Bottomline Technologies
Condensed Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Fiscal Year Ended
June 30,
2000 1999
Revenues:
Software licenses $ 19,483 $ 15,885
Service and maintenance 19,870 12,422
Equipment and supplies 9,781 10,996
Total revenues 49,134 $ 39,303
Cost of revenues:
Software licenses 561 261
Service and maintenance 9,733 5,323
Equipment and supplies 7,252 7,999
Total cost of revenues 17,546 13,583
Gross profit 31,588 25,720
Operating expenses:
Sales and marketing 13,784 10,969
Product development and engineering 8,580 3,971
General and administrative 8,606 4,755
Expense associated with warrants issued 11,902
In-process research and development 3,900
Amortization of intangible assets 2,311
Total operating expenses 49,083 19,695
Income (loss) from operations (17,495) 6,025
Interest income, net 1,830 726
Income (loss) before provision (benefit) (15,665) 6,751
for income taxes
Provision (benefit) for income taxes (1,400) 2,700
Net income (loss) $(14,265) $ 4,051
Earnings (loss) per share available
to common stockholders:
Basic $ (1.33) $ 0.50
Diluted $ (1.33) $ 0.43
Shares used in computing earnings
(loss) per share available to common
stockholders:
Basic 10,744 7,988
Diluted 10,744 9,170
Excluding non-recurring and
acquisition-related charges:
Pro forma net income $ 1,469 $ 4,051
Pro forma diluted earnings per
share available to common
stockholders $ 0.13 $ 0.43
Bottomline Technologies
Condensed Balance Sheets
(in thousands)
(unaudited)
June 30, June 30,
2000 1999
Assets
Current assets:
Cash, cash equivalents and
short-term investments $ 38,514 $ 39,699
Accounts receivable 14,571 11,631
Other current assets 3,844 1,358
Total current assets 56,929 52,688
Property and equipment 5,172 2,392
Other assets 9,179 66
Total assets $ 71,280 $ 55,146
Liabilities and stockholders' equity
Current liabilities:
Accounts payable and accrued expenses $ 6,934 $ 4,854
Deferred revenue and deposits 6,034 3,467
Other current liabilities 901 657
Total current liabilities 13,869 8,978
Deferred income taxes payable 283 253
Stockholders' equity
Common stock 11 10
Additional paid-in-capital 64,914 39,429
Unrealized loss (8) 0
Retained earnings (deficit) (7,789) 6,476
Total stockholders' equity 57,128 45,915
Total liabilities and stockholders' equity $ 71,280 $ 55,146
CONTACT: Bottomline Technologies
Tim Aberle, 603-559-5246
taberle@bottomline.com
URL: businesswire.com
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