Fundtech reports revenue rise; lifts guidance

Fundtech reports revenue rise; lifts guidance

US-based payments technology vendor Fundtech is raising its guidance for full-year 2004 due to improving conditions at the high end of the market.

The company is now forecasting 2004 revenues of $54.4 million to $55.5 million, compared with previous guidance of $53.5 million to $54.5 million. The range for GAAP earnings per diluted share has increased to between $0.12 and $0.17 from prior guidance of between $0.10 and $0.16.

Fundtech says revenues for the second quarter of 2004 were $13.7 million, up six percent sequentially from $12.9 million in the first quarter and 17% higher than the $11.7 million a year ago.

During the quarter Fundtech says it closed 35 new deals and added seven new bank customers. In the US the vendor closed ASP and disaster recovery services transactions, which are expected to generate $7.0 million of revenues over the next five years.

For the six months ended June 30 2004, revenues were $26.6 million, up 17% from $22.7 million for the same period in 2003.

Reuven Ben Menachem, CEO, Fundtech, says: "Conditions are improving at the high end of the market, and we continue to generate healthy operating cash flows as cash and equivalents increased by $6 million on a trailing twelve months basis."

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