BTW- where is everyone?
CheckFree Posts Record Results for the First Quarter of Fiscal 2001
-- Electronic billing and payment milestones reached during the quarter include relationships with 210 billers, nearly 250 Internet sites where consumers can view and pay bills, a run rate of 1.7 million bills distributed annually, eight percent sequential quarterly subscriber growth, and 20-plus percent growth in Internet-based subscribers --
ATLANTA (October 24, 2000) – CheckFree Corporation (NASDAQ: CKFR) today announced revenues of $90.8 million for the first quarter ended September 30, 2000 compared to $69.0 million for the same quarter of Fiscal 2000. Total revenues for the quarter increased 31 percent over the comparative quarter of last year.
CheckFree reported a pro forma loss for the quarter of $5.5 million, or nine cents per share, excluding the impact of acquisition-related amortization and one-time charges. This compares to a pro forma loss of $2.4 million, or five cents per share, for the same period in fiscal 2000. Results include the effect of CheckFree’s merger with TransPoint, which closed effective September 1, 2000. They do not reflect the Company’s strategic alliance with Bank of America.
CheckFree Chairman and CEO Pete Kight said, "I am very pleased with the progress we made this quarter in each of four areas vital to our accelerating market momentum this fiscal year: Bills on the Internet, sites where consumers can both receive and pay bills, co-marketing efforts among billers and Consumer Service Providers, and continued enhancement of our core billing and payment transaction processing engine.
"We closed the first quarter with 210 billers committed to CheckFree services, which includes 30 net-new billers from the closing of our merger with TransPoint, and is up from 157 billers signed by the close of fiscal 2000. Of these billers, 137 already make their bills available for payment on the Internet. Today consumers can go to nearly 250 Internet sites to receive and pay their bills, which is up from just under 200 sites at the close of last quarter. We are distributing bills at a run rate of 1.7 million annually, and our sequential quarterly subscriber growth was eight percent, at the high end of the six- to-eight percent range we expected. Importantly, Internet subscribers logged a seventh straight quarter at greater than 20 percent sequential growth," Kight continued. "Attaining 20 percent-plus Internet growth and eight percent overall growth in enrollments in the historically slow September quarter is strong performance."
"We are working with financial information services providers on marketing programs that combine incentives from them with incentives from billers to encourage consumers to sign up. We also are progressing on our plans to deliver a compelling set of next-generation payment services that have the unique value of being integrated with electronic billing and payment services offered by trusted financial services brands. Overall, we had another solid quarter executing toward achieving our goals," Kight added.
Solid Performance on All Core Electronic Billing and Payment Metrics
Significant accomplishments relevant to CheckFree’s goal of continuing to lead and to accelerate the electronic billing and payment market include:
Nearly 250 sites are now live with full electronic billing and payment, up from nearly 200 at the end of the fourth quarter and compared to 53 at the close of the first quarter of fiscal 2000.
The Company added 53 billers in the first quarter, including 30 from TransPoint. This brings to 210 the total roster of bills that will be soon be available on the Internet, which is up from 157 at the close of the fourth quarter of fiscal 2000. One hundred and thirty seven of these bills are available on the Internet today, 33 are actively being prepared for the Internet and 40 are in the discovery, or planning, process. This is up from 77 billers signed and 40 making their bills available on the Internet at the close of the first quarter of fiscal 2000.
The number of bills distributed on the Internet in September increased nearly 50 percent over bills distributed on the Internet in June. CheckFree distributed about 140,000 bills on the Internet in September, which equates to a run rate of 1.7 million bills per year. Bills gained through TransPoint are included in this metric, but did not materially affect it.
First quarter sequential quarterly subscriber growth was eight percent, bringing the total subscriber count at the end of the quarter to 3.8 million. Subscriber additions from TransPoint are included in, but did not contribute materially to, this total. With the closing of the Bank of America strategic alliance, effective October 1, approximately 300,000 existing Bank of America subscribers have been transferred to CheckFree, lifting the subscriber total to about 4.1 million.
Sequential quarterly growth of Internet-based subscribers in the first quarter exceeded 20 percent. As of the close of the first quarter, nearly half of CheckFree’s subscriber base was using Internet-based services.
The Company processed an all-time high of nearly 17 million monthly transactions during the quarter, and achieved an electronic rate in excess of 58 percent for each month of the quarter.
TransPoint Merger Closes, Brings Relationships with Microsoft and First Data
The merger between CheckFree and TransPoint closed effective September 1, 2000, bringing to CheckFree an exclusive five-year relationship with Microsoft to provide electronic billing and payment technology used in applications and services Microsoft develops. During that time, Microsoft will guarantee a minimum of $120 million in revenue to CheckFree. First Data has also entered into a five-year relationship with CheckFree, during which time CheckFree and First Data will market each other’s services. First Data will provide at least $60 million in revenue and/or cost savings to CheckFree. Microsoft, First Data and Citibank, which was a minority investor in TransPoint, jointly received 17 million shares of CheckFree’s Common Stock.
"The integration of TransPoint into CheckFree’s Electronic Commerce operations is progressing well," said Pete Sinisgalli, CheckFree’s president and chief operating officer. "About half of the billers who had agreements with TransPoint also had agreements with CheckFree, and did not require extensive transition plans. Transition plans have been created for the 30 net new billers that became CheckFree customers through this merger," he added.
Regarding the company’s strategic alliance with Bank of America, Sinisgalli said, "our planned introduction of electronic billing and payment services to Bank of America’s consumers continues right on track."
Strong Division Performance
CheckFree’s Electronic Commerce division reported revenue of $63.0 million for the quarter, representing 32 percent growth over the same quarter of fiscal 2000. The division posted a pro forma operating loss of $4.8 million, compared to a pro forma loss of $5.2 million for the first quarter of fiscal 2000. The division processed 58 percent of its billing and payment transactions electronically, contributing to high quality and efficiency levels.
CheckFree Investment Services reported revenue of $15.7 million for the quarter, a 28 percent increase over the same quarter last year. Pro forma operating income for the quarter was $4.0 million, which represents an increase of 15 percent over the first quarter of fiscal 2000. During the quarter the division grew the number of portfolios under its management to more than one million, up 30 percent over portfolios managed at the close of the first quarter of fiscal 2000.
The Company’s Software businesses reported revenue in the quarter of $12.1 million, up 35 percent over revenue generated in the first quarter of fiscal 2000, including the Company’s acquisition of BlueGill Technologies, which now operates as part of CheckFree i-Solutions. The Software businesses reported a pro forma operating loss of $0.8 million for the quarter, as compared to pro forma operating income of $2.7 million in the first quarter of fiscal 2000, reflecting planned investments in i-Solutions.
Second Quarter Expectations
"We are forecasting revenues for the second quarter of fiscal 2001 to be in the range of $104 million to $109 million, with a pro forma loss per share of around seven to nine cents," said David Mangum, CheckFree’s chief financial officer. "These expectations include the effects of the Company’s merger with TransPoint, which closed in September, and our strategic alliance with Bank of America, which became effective October 1, 2000," Mangum added.
About CheckFree
CheckFree Corporation is the leading provider of financial electronic commerce services, software and related products. Through its operating subsidiaries, CheckFree designs, develops and markets services that enable four million consumers to receive and pay bills over the Internet or electronically through a variety of bill aggregation points, including banks, brokerage firms, portals and interactive content sites on the Internet, and personal financial management (PFM) software. CheckFree’s range of services and products are focused on enabling customers to receive electronic bills and statements, make electronic payments and collections, automate paper-based recurring financial transactions and conduct secure Internet transactions.
First Quarter Highlights
September 28 – CheckFree shareholders approved the issuance of 10 million restricted shares of CheckFree Common Stock and performance-based warrants to purchase up to an additional 10 million shares of CheckFree Common Stock to Bank of America.
September 19 – Sears, Roebuck and Company’s approximately 60 million credit card customers will be able to view and pay their Sears bills online through their choice of CheckFree-powered Web sites.
September 18 – CheckFree’s client base of professional money managers and financial advisors is now running in excess of one million portfolios on the CheckFree APL platforms.
September 12 - EDS announced it is adding electronic billing and payment capabilities from CheckFree i-Solutions, the leading provider of electronic billing and payment software and services, to its wide range of e-commerce solutions.
September 7 – CheckFree named Pitney Bowes docSense as a Premier Certified Partner through its CheckFree Partner Certification Program. The Certification Program is designed to offer partner organizations CheckFree’s leading distribution and payment systems as a complement to the partners’ products and services.
September 5 – CheckFree and TransPoint announced that the merger of the two companies has closed. On September 1, 2000, CheckFree shareholders approved the issuance of 17 million shares of CheckFree Common Stock in connection with the merger with TransPoint. The two companies announced their plans to merge in February 2000.
August 15 – CheckFree announced that it is providing electronic billing and payment to SBC Communications Inc. companies Pacific Bell and Southwestern Bell. Customers in California, Missouri, Oklahoma, Texas, Arkansas, and Kansas can view and pay their monthly Pacific Bell and Southwestern Bell bills at their choice of CheckFree-powered web sites.
August 2 – CheckFree announced that billserv.com is its first Premier Certified Partner through its Partner Certification Program. This program is designed to offer partner organizations CheckFree’s leading distribution and payment systems as a complement to the partners’ products and services.
July 31 – CheckFree and AT&T announced that AT&T’s 60 million long distance customers can now view and pay their long distance phone bills online at their choice of CheckFree-powered web sites.
July 27 – Yodlee.com and CheckFree announced an agreement that will enable users to experience the convenience of CheckFree’s billing and payment services directly from Yodlee-powered services across the web.
July 27 — DocuCorp announced that electronic bill presentment and payment services are available for 155,000 residential and commercial members of Cobb Electric Membership Corporation (Cobb EMC) of Marietta, GA.
July 24 — Reliant Energy's (NYSE REI) 1.6 million electric and natural gas customers in the Houston area can eliminate their paper bills by viewing and paying their bills online at www.reliantenergy.com.
July 17 – Phillips 66 credit cardholders can now access their statements and pay their accounts online.
July 13 – CheckFree and APS, Arizona’s largest electric utility, announced an agreement to make electronic billing and payment available to APS customers.
July 12 – CheckFree will incorporate the Equifax Secure authentication engine into its electronic and billing payment enrollment process to more quickly and securely verify customer identity when signing up for service to view and pay bills electronically.
July 11 –Internet infrastructure developer 724 Solutions and CheckFree agreed to make electronic billing and payment over wireless devices available to financial institutions that use CheckFree and the 724 Solutions Financial Services Platform.
July 10 – TIAA-CREF has selected CheckFree RECON-Plus for Windows to support daily account reconciliation for its growing transaction volume base. |
