Fundtech scales up to meet growth prospects
17 February 2004 | 2886 views | 0
US payments technology vendor Fundtech is to spend $1 million over the next six months in additional staffing costs in anticipation of an increase in customer demand.
The extra expense comes as Fundtech reports 20% growth in revenues over 2003 to $47.6 million from $39.8 million in 2002. Revenues for the fourth quarter of 2003 increased to $12.9 million as the company closed 33 new deals and added eight new bank customers. On a sequential basis, service revenues increased $600,000, and maintenance, license and hardware revenues grew by $100,000.
Net income for the fourth quarter was $675,000, compared with $247,000 for the third quarter of 2003 and a net loss of $4.1 million in the fourth quarter of 2002. Full year net income was $67,000 compared with 2002 net loss of $16.6 million.
Fundtech CEO Reuven Ben Menachem. "We enjoyed a strong year in 2003, highlighted by higher revenues, steadily increasing gross margins and improved operating efficiencies. We expect to capitalize on our market position to expand our business even further in 2004, with a focus on continuing to grow our recurring revenue base."
For the 12 months to end-2004, Fundtech expects revenues to be between $52.8 million to $54.3 million and operating profit of between $1.0 million and $2.2 million.