E-payments vendor Transaction Systems Architects is reporting a 10.5% increase in second quarter revenues to $76.5 million and a near doubling of net income to $8 million over the year ago period.
For the second quarter of fiscal 2004, revenues were comprised of software license fees of $42.4 million, maintenance fees of $22.3 million and services fees of $11.8 million. The company's recurring revenue was $46.8 million, or 61% of revenue, with non-recurring revenue of $29.7 million. Recurring revenue consisted of monthly license fees of $22.2 million, maintenance fees of $22.3 million and facilities management fees of $2.3 million.
Operating income was $14.1 million, with an operating margin of 18.4%, compared to operating income of $11.3 million in the second quarter of 2003, an increase of 24.7%.
For the six months ended 31 March, 2004, revenue totaled $150.5 million, compared to $131.7 million for the same six-month period in fiscal 2003, an increase of 14.3%. First half operating income was up 57.7% on the equivalent period, while net income increased 155% to $18 million over the same timeframe.
During the quarter, the company added 18 new customers, including 14 new sales by ACI Worldwide, its largest business unit. ACI Worldwide also licensed capacity upgrades to 17 customers and licensed 12 new applications to existing customers during the quarter, including a BASE24-es solution on the HP UX platform.
With a strong order pipeline, Transaction Systems Architects has revised its revenue estimate for fiscal 2004 from a range of $271 to $287 million to a range of $282 to $292 million.