CheckFree Corporation (NASDAQ:CKFR) today announced first quarter underlying revenue of $296.5 million, a 30 percent increase over the same period last year, and GAAP (Generally Accepted Accounting Principles) revenues of $284.7 million, a 25 percent increase over the same period last year.
The Company's GAAP net income for the quarter was $29.8 million, or $0.33 per share, and underlying net income was $49.5 million, or $0.55 per share. Free cash flow was $33.9 million for the first quarter as outlined in Attachment A.
GAAP Results: Net income for the first quarter of fiscal 2008 was $29.8 million, compared to net income of $31.2 million for the same quarter last year. Earnings per share were $0.33 for the first quarter of fiscal 2008, compared to earnings per share of $0.34 for the first quarter of last year. Net cash provided by operating activities was $39.0 million for the first quarter of fiscal 2008, compared to $47.6 million for the same period last year.
Underlying Results: Underlying net income for the first quarter was $49.5 million, compared to $38.4 million for the same quarter of last year. Underlying earnings per share were $0.55 for the first quarter of fiscal 2008, compared to $0.41 per share for the first quarter of last year.
Underlying revenue includes $11.8 million of revenue excluded from GAAP revenue related to a deferred revenue adjustment arising from purchase accounting for acquisitions we completed in the fourth quarter of fiscal 2007. Underlying net income and earnings per share for the first quarter of fiscal 2008 include the deferred revenue adjustment and exclude the amortization of acquisition-related intangible assets, acquisition and integration costs, the SFAS 123( R ) impact of stock options issued prior to July 1, 2004, and the related combined tax effects. A reconciliation of CheckFree's quarterly underlying results to its GAAP results is included in Attachment A.
"Our first quarter results reflect solid execution across our business units," said Pete Kight, CheckFree Chairman and Chief Executive Officer. "We continue to integrate our three recent acquisitions into our businesses and are pleased with the progress we have made to date."
First Quarter Highlights
For the first quarter of fiscal 2008, the Company reported that the Electronic Commerce Division processed 351.6 million transactions, and delivered 63.9 million electronic bills.
CheckFree Investment Services reported about 2.8 million portfolios under management, and the Software Division reported solid sales results. Refer to Attachment B for details on the financial performance of CheckFree's divisions in the first quarter of fiscal 2008, and Attachment C for electronic billing and payment metrics.
Company Outlook for the Second Quarter
Given CheckFree's pending merger with Fiserv, Inc., the Company will not provide forward-looking financial expectations and will not be hosting an earnings conference call.
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