Following a turbulent year US fintech vendor S1 Corporation has posted heavy losses for Q4 2006 after earnings were hit by restructuring and other charges, but a windfall from the sale of its FRS business helped the company return to full year profitability.
Atlanta-based S1 has posted fourth quarter losses of $12.8m, compared to profit of $3.4m in Q4 2005. The results include $11.2m of net merger related and restructuring charges and and $1.3m in stock-based compensation expense.
But the vendor's fourth quarter revenue rose 27% to $50.2m, compared to $39.7m a year ago.
For the 2006 full year, S1 says revenue increased seven per cent to $192.3m from $179.1m in 2005. Full year net income came in at $17.9m - compared to a loss of $1.1m in 2005 - but the 2006 result included a gain of $30.1m from the sale of its FRS unit in August.
Commenting on the results Johann Dreyer, S1's new CEO, says despite the "significant distractions" encountered throughout 2006, the firm increased revenues and profitability.
Dreyer - former group president of S1's Postilion business unit - was named president and chief executive in November following the resignation of James Mahan, who stepped down from the company following a "strategic review" of the business, which was instigated in response to demands from investors for the firm to put itself up for sale.
Following the calls, the vendor established a committee charged with assisting management in improving its financial performance.
In today's statment Dreyer says "restructuring activities" undertaken in the fourth quarter "will result in substantial operational improvements".
"We are looking forward to significant year-over-year growth in income from continuing operations and continued revenue growth," he adds.
Looking ahead, S1 says it expects to earn between three and five cents per share on revenue of between $46.5m and $47.5m in the first quarter of 2007.
Read S1's results statement here:Download the document now 42 kb (Adobe Acrobat Document)