Fundtech revenues rise

Fundtech revenues rise

US payments systems vendor Fundtech is reporting a 23% rise in revenues for the year ending 31 December 2004.

Revenues increased to $58.5m from $47.6m in 2003. GAAP net income in 2004 was $2.5m, compared with net income $67,000 in 2003.

For the fourth quarter 2004 revenue rose to $17.7 million up 37% from $12.9 million a year ago. Net income for Q4 2004 increased to $1.1m, compared to $675,000 in the fourth quarter of 2003.

The vendor says its closed 48 new deals and added 15 new banking clients in 2004. Overall the firm recorded 19 new systems sales. A contract win at HSBC for its Global PAYplus transaction system is expected to generate revenues within the next two years and beyond. The group also expects accelerated revenues in connection with a new initiative in the securities trading settlement market.

In October the vendor bought India-based CashTech Solutions and Datasphere, a Geneva-based provider of interbank clearing and securities settlement systems.

Yoram Bibring, CFO, Fundtech, says the acquisitions combined contributed $1.1 million in revenues in the fourth quarter and had a negligible impact on profitability.

After initially rising to $10.26 cents in morning trading from an overnight close of $9.93, FundTech shares slipped 0.50% to $9.88.

Looking ahead, the vendor reiterated the full-year 2005 guidance issued last week when it forecast revenues in the range of $68 million to $70 million, or approximately 18% to 21% year-over-year growth.

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