Corillian shares marked down as vendor turns profit

Corillian shares marked down as vendor turns profit

US-based Internet banking systems vendor Corillian is reporting net income for 2003 of $5.1 million, compared to a loss of $17.3 million in 2002, as revenues rose by 18% for the year.

Revenues for 2003 were $46.1 million, compared to $39.1 million for 2002. For the final quarter, revenues rose 21% to $12.2 million versus $10.1 million for Q4 2002. Net income for the quarter was $2.1 million compared to a net loss for the comparable prior year period of $1.5 million.

Cash and investment balances at the end of the fourth quarter were $26.8 million, compared to $17.6 million at the end of 2002.

Alex Hart, president and CEO of Corillian Corporation, says: "The broad adoption of online financial services is just beginning, and Corillian is well-positioned to provide the functionality, scalability, security and performance that financial institutions need to lead the revolution."

He says end user adoption for Corillian customers continued to grow during 2003, with an increase of over 50% from 9.1 million end users at the end of 2002 to 14 million at the end of 2003.

Based on its current backlog, anticipated project schedules and sales pipeline, Corillian anticipates that first quarter 2004 revenues will be in the range of $11 million to $12 million.

Despite the relatively upbeat assessment, shares in the vendor were marked down 19% by investors, concerned at its failure to meet earnings estimates and fearful for its future outlook.

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