US internet banking systems vendor Corillian has retreated from the international stage and cut back on its service business after recording a $14.7 million drop in revenues for the year-ending 2002. With cash burn reduced to near-zero and domestic revenue flat, the company has reported its first adjusted EBITDA positive quarter ever and beat consensus earnings per share estimates by $0.02 per share.
Revenues for the fourth quarter were $10.1 million, compared to $10.0 million for the third quarter of 2002 and $9.9 million for the fourth quarter of 2001. Pro forma net loss for the fourth quarter, which excludes non cash and unusual items, was $1.3 million, resulting in a pro forma net loss per share of $0.04 beating First Call EPS estimates of $0.06.
Adjusted earnings before deductions for the quarter were approximately $300,000, against a loss of $4.5 million for the comparable prior year period.
Cash and investment balances at the end of the fourth quarter were $17.6 million, compared to $14.1 million at the end of the third quarter of 2002 and $17.7 million at the end of 2001.
Alex Hart, president and chief executive officer, comments: "We finished one of the worst IT spending years in recent memory with essentially zero cash burn and a significant increase in backlog."
Revenue for 2002 was $39.1 million, compared to $53.8 million for 2001. Pro forma net loss for 2002 was $13.1 million, compared with $22.6 million in pro forma losses for 2001.
Steve Sipowicz, Corillian chief financial officer attributes the fall off in revenues to a decrease in work performed for third parties by Corillian Services, Inc. (formerly Hatcher Associates) and reduced sales from the company's international operations.
He says: "We have sized the company appropriately. We have reduced our international and Corillian Services expenses significantly and will only pursue international opportunities through partnerships in select markets."
The company is anticipating no uplift in revenues for the first quarter 2003 based on its current backlog of projects and sales pipeline, but expects a 10-15% increase over the year as a whole.
The vendor says that seven of its customers are now live on the Corillian Voyager 3.0 platform and many others are in the process of upgrading to the new version.