Fundtech Q2 revenues grow

Fundtech posted quarterly revenues of $21.5 million, a 17% increase year-over-year, compared to second quarter revenue of $18.4 million in 2005, and an 11% sequential increase compared to first quarter 2006 revenue of $19.4 million.

On a GAAP (Generally Accepted Accounting Principles) basis, the Company reported net income of $770,000 or $0.05 per diluted share, for the second quarter of 2006 compared with net income of $844,000, or $0.05 per diluted share, in the second quarter of 2005, and net income of $156,000, or $0.01 per diluted share, in the first quarter of 2006.

Excluding stock-based compensation, amortization of intangibles and amortization of capitalized software costs, Fundtech's adjusted non-GAAP net income for the second quarter of 2006 was $2.2 million, or $0.14 per diluted share, compared with $1.5 million, or $0.10 per diluted share, in the second quarter of 2005 and $1.4 million, or $0.09 per diluted share, in the first quarter of 2006.

"This was a record quarter in terms of revenues as we continue to meet our EPS guidance," said CEO Reuven Ben Menachem. "This was also a strong quarter in terms of adding new customers across our product lines. Many of these new customers prefer a hosted (ASP) solution over the in-house alternative, reflecting a market trend that is in line with our long term strategy of shifting our product revenues into recurring revenues."