S1 wins BofA as revenues rise and losses narrow

S1 wins BofA as revenues rise and losses narrow

Bank of America is to use S1 Corporation's Trade Finance solution to deliver global trade services to corporates over the Internet.

S1's new Global Trade Services module will be added to Bank of America Direct, a transaction and information platform which allows clients to manage payments, receipts, and treasury activity on the Internet. The S1 product will provide straight-through processing for the full range of trade products, says the bank, including import, export, and standby letters of credit, collections, and purchase order processing.

Cheryl Sill, manager of global trade product management at Bank of America says "Internet access to our Global Trade services gives our clients the convenience of managing their trade activities in a single, secure, integrated environment, without installing software on a personal computer."

News of the contract coincided with the announcement by S1 of a first quarter loss of $9.6 million, against $17.7 million for the year earlier quarter, and a 25% increase in revenues to $63.1 million over the $50.4 million reported in the first quarter the prior year. S1 is reporting data centre revenues up 192%, license fees up 29% and the signing of 72 new Enterprise eFinance customers.

"Cash used in operations during the quarter was approximately $18 million, down significantly from the $46 million cash usage in fourth quarter 2000," states Robert Stockwell, chief financial officer. "In addition to cash used in operations, $15 million in cash was transferred to VerticalOne immediately prior to its sale. S1's cash balance at March 31 was approximately $140 million."

In Q2 2001, the company expects to generate revenues in the range of $62 - $65 million, with total annual revenue projections for 2001 in the range of $275 - $285 million. EBITDA loss expectations for the second quarter are between $7 and $9 million with S1 insisting that it is "committed" to its previously stated goal of reaching profitability in 2001.

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