So who should we be watching in this new semi cycle?
FNDTF earnings:
02/03 07:46 Fundtech Revenue More Than Doubles To A Record $7.8 Million; Net
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Fundtech Revenue More Than Doubles To A Record $7.8 Million; Net Income Increases To $2.2 Million Or $0.20 Per Diluted Share
JERSEY CITY, N.J.--(BUSINESS WIRE)--Feb. 3, 1999--Fundtech, Ltd. (Nasdaq: FNDTF), a leading provider of electronic payments and cash management software, today announced its financial results for the fourth quarter and year ended December 31, 1998. The Company reported revenue of $7.8 million, more than double the $3.1 million reported for the same quarter in the previous year. Net income for the quarter increased dramatically to $2.2 million or $0.20 per diluted share, as compared to $586,000 or $0.07 per diluted share, for the year-ago quarter.
The operating margin for the fourth quarter of 1998 was 27% compared to 17% in the fourth quarter of 1997.
Software license fees increased 143% to $4.8 million for the three months ended December 31, 1998, from $2.0 million in the three months ended December 31, 1997. The significant increase in license fees was due to the continued market penetration of the Company's United States payments products and further advances into the international marketplace. Revenue attributable to solutions sales outside of the United States accounted for approximately 20% of total revenue compared to less than 10% during the fourth quarter of 1997. Maintenance and service revenue was $2.4 million, a 180% increase over $842,000 in the year-ago quarter. Hardware sales were $597,000 for the quarter as compared with $316,000 for the quarter ended December 31, 1997.
"This was a year of remarkable activity and achievements for Fundtech," said Reuven Ben-Menachem, Chairman and Chief Executive Officer. "Fundtech began the year primarily as a provider of U.S. payments systems. During the year, we successfully entered three new business areas--international payments, electronic and Internet banking, and wholesale payments processing services--and established a solid foundation for leadership in the wholesale payment and electronic banking markets. Going forward, we will aggressively pursue further international expansion, particularly in Europe, and will focus on releasing payments products that are compatible with the UNIX platform to meet the needs of top tier financial institutions."
"The 1998 fourth quarter was our best ever, with more than 20 new orders, including 10 from new customers, and dramatic year-over-year growth," said Michael Carus, Executive Vice President and Chief Financial Officer.
The Company reported revenue for the year of $23.1 million, a 189% increase over $8.0 million for the year ended December 31, 1997. Net income for the year, excluding a one time acquisition related charge, increased 719% to $5.2 million, or $0.48 per diluted share, as compared to $636,000 or $0.08 per diluted share, for the year ended December 31, 1997.
Highlights of the Company's fourth quarter included:
Introduction of ACCESS.pro. On November 16, Fundtech introduced its next-generation corporate electronic banking product. ACCESS.pro enables banks to offer electronic banking services to corporations of all sizes, regardless of their level of computer sophistication. It offers secure, instant access to balance information, ACH, bank reports, wire transfer, reconciliation, DDA, lockbox, loan, account analysis, and securities information via a wide range of delivery channels including the Internet, Windows PCs, TTY terminals, touch-tone telephones and fax machines. On November 18, Fundtech announced that its new ACCESS.pro suite of products was selected by Republic National Bank as its wholesale Internet banking solution.
Announcement of First Nationwide Clearing System. On December 7, Fundtech announced that the International Air Transportation Association selected Bank Leumi and Fundtech to work in partnership to establish the Israeli Clearing Bank for all airline ticketing payments. The solution will clear transactions among 450 registered travel agents and 40 international airlines in Israel.
Fundtech Ltd. designs, develops, markets and supports a suite of mission-critical client/server software products that enable financial institutions and large business enterprises to process payments, transfer funds and manage their cash positions electronically. 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, which is based on the Windows NT and UNIX operating systems, provides modular, scaleable, and secure solutions that have been sold to more than 200 financial institutions.
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