Wholesale payments systems vendor Fundtech has narrowed first quarter losses and kicked off the second quarter with two additional orders for its flagship payments product Global PAYplus totalling approximately $10 million.
Revenues for the first quarter ending March 2003 were $11 million, four per cent higher than the fourth quarter of 2002, and 16% up on the year ago period. Compared to the fourth quarter, license revenues decreased by $100,000, service revenues increased by $300,000 and maintenance revenues remained unchanged. Hardware revenues increased by $200,000.
On a GAAP basis, net loss for the first quarter was $625,000, or $0.04 per share, compared with a loss of $4.1 million, or $0.29 per share for the fourth quarter of 2002 and net loss of $3.9 million or $0.27 per share in the first quarter of 2002.
Reuven Ben Menachem, chairman and CEO of Fundtech hailed the results as the fifth straight quarter of improved revenues and operating performance.
"This quarter was particularly satisfying as we reached the breakeven point on an adjusted EPS basis," he says. "Our next generation products have enabled us to continue to improve results despite the difficult market conditions."
The company says it added six new bank customers and closed 35 new deals in the first quarter, including ASP and disaster recovery services transactions, which are expected to generate $3.5 million of revenues over the next 3 to 5 years.
The company is also reporting $10 million in orders for Global PAYplus from Bank Austria Creditanstalt and from a large existing customer.
Bank Austria Creditanstalt's two-year phased roll-out of GPP will cover up to 16 countries throughout the Central and Eastern European Region, beginning with the Czech Republic and Hungary in 2003.
Revenues will be recognised over the implementation periods of the two projects.
Fundtech has also announced five new order for CASHplus, its next generation corporate cash management solution. The banks, four of which have signed contracts within the past six months, will be leveraging CASHplus' uCustomize technology that provides customised service versions tailored to the needs of each of the market segments they serve.
The recently signed banks include National Commerce Finance Corporation (NCFC), headquartered in Raleigh, North Carolina; Colorado Business Bank, headquartered in Denver, Colorado; Woodforest National Bank, headquartered in Houston, Texas; and Hudson Valley Bank, headquartered in Yonkers, New York.