S1 Corporation has reported a nine per cent decline in first quarter revenues to $65.7 million compared to fourth quarter 2002 and a net loss of $29.3 milion, against net income of $1.2 million sequentially.
The first quarter loss includes restructuring charges and an asset impairment charge related to the company's Edify business unit, which has been brought back into the accounts after the company failed to agree a sale with prospective buyers.
Revenue of $59.2 million from S1's financial institutions segment was in line with previous guidance, although net loss per share of (0.14) was above the (0.13) per share upper limit.
"Our Q1 results did not meet our expectations," says Jaime Ellertson, S1's chief executive officer says: . "However, in a difficult quarter, we continued to make progress with our Enterprise solutions, signing nine new Enterprise customers, bringing the total number of Enterprise customers to over 80."
He says the firm is on track to complete the transition of the business from a single-channel Internet banking software provider to a provider of multi- channel Enterprise solutions by the end of 2003.
Ellerston adds: "We now have established a baseline for our core banking and insurance business and believe that Enterprise will fuel our growth moving forward."
The vendor signed 65 new financial institution customers and completed almost 200 cross-sales to its existing customer base of approximately 4000 financial institutions during Q1.