Revenues for the first quarter were $31.4 million, a 24% increase from revenues of $25.2 million in the first quarter of last year. The growth in revenues was highlighted by an increase in software license revenues to $3.4 million in the current quarter from $1.9 million in the first quarter of last year. Subscription and transaction revenue and service and maintenance revenue also increased on a year-over-year basis.

Net loss for the first quarter was $0.8 million, or net loss per share of $0.03. During the first quarter, operating expenses of $18.9 million included acquisition-related amortization of intangible assets of $2.6 million and stock-based compensation expense of $1.9 million.

Excluding these acquisition-related and stock compensation items, non-GAAP net income for the first quarter was $3.8 million, a $2.0 million, or 108% increase in non-GAAP net income from the first quarter of last year. Non-GAAP net income per share doubled from $0.08 a year ago to $0.16 in the current quarter.

Cash and short-term investments on hand as of September 30, 2007 were $64.9 million. During the first quarter, the company spent $3.7 million toward the repurchase of 281,000 shares of its common stock at an average repurchase price of $13.14.

"Bottomline had a good first quarter and a strong start to the new fiscal year," said Rob Eberle, President and CEO of Bottomline Technologies. "Our results were well ahead of expectations. We are beginning to see the earnings capability of the model we have been working to create with non-GAAP net income of $3.8 million which is double the same period a year ago. This reflects a focused effort to prioritize and align our offerings towards the greatest opportunities for revenue growth and margin expansion. We expect this effort, which will be ongoing, to yield even greater earnings potential in the future."

Customer Highlights

• Bottomline's WebSeries Global Cash Management platform was selected by one of the world's largest publicly owned providers of health care, disability, life and accident insurance benefits to enhance compliance and control over payment and cash management processes across the organization.
• New customers, including Dentsply International, Healthcare REIT, Lindt & Sprüngli, London Overground Rail Operations, Midwest Insurance and Sbarro, chose Bottomline's solutions to accelerate the transition from paper- to electronic-based payment and transactional document processes.
• Hyatt Hotels extended the value of their Oracle e-Business Suite with Bottomline's accounts payable automation solution for streamlined electronic invoice processing and automated, electronic transactional document creation.
• Westchester County Medical Center, the academic medical center of New York Medical College, signed a multi-year contract for Legal eXchange, Bottomline's Software as a Service (SaaS) for legal spend management.

Corporate and Product Highlights

• Formed a strategic global partnership with Wipro Technologies to provide corporate payments and cash management solutions to customers based on Bottomline's WebSeries platform.
• Announced that the company received three payments security-related technology patents from the United States Patent and Trademark Office, further strengthening Bottomline's market position and competitive differentiators within corporate payments and banking.
• Introduced advanced functionality for payments workflow and expanded support for Service Oriented Architecture (SOA) within Bottomline's Global Cash Management platform. Through SOA, banks and financial institutions can seamlessly integrate WebSeries' advanced payment and reporting capabilities into other applications for corporate, small business and retail banking, and trust and securities services.

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