CyberSource Corporation, (Nasdaq: CYBS), a leading provider of electronic payment and risk management solutions, today announced updated guidance for its fourth quarter 2007 based on information available as of November 8, 2007.
CyberSource completed its acquisition of Authorize.Net on November 1, 2007 and, therefore, CyberSource is updating fourth quarter 2007 guidance based on expected results as a combined company. This guidance for the combined company supersedes the guidance included in the company's press release dated October 18, 2007 and provided on the October 18, 2007 earnings conference call for CyberSource on a pre-acquisition basis.
The guidance provided in this press release is on a non-GAAP basis only, and excludes stock- based compensation expense under SFAS 123R, the non-cash portion of the income tax provision, a reduction in the tax allowance, depreciation and amortization expense, and certain non-recurring charges and income. During the fourth quarter, the Company will be finalizing its analysis with regard to certain expenses and the impact on the financial results of the combined company. Such expenses include intangible asset amortization resulting from the acquisition, the value of the converted Authorize.Net outstanding stock options and the impact on the company's stock-based compensation expense, and the tax provision of the combined company. Because these expenses are included in net income in accordance with GAAP, but are excluded from non-GAAP net income, the guidance provided below is on a non-GAAP basis. Non-GAAP information is not determined using GAAP and should not be considered superior to or as a substitute for GAAP measures or data prepared in accordance with GAAP. Furthermore, non-GAAP information may not be comparable across companies, as other companies may use different non- GAAP measures. The company does not provide guidance for certain financial measures such as depreciation and stock-based compensation expense and as a result, is not able to provide a reconciliation of GAAP and non-GAAP financial measures for forward-looking data.
Updated Guidance for Q4 2007
Total revenue for the fourth quarter is expected to be between $44.0 and $44.3 million. Transaction volume for legacy CyberSource, or enterprise platform, is expected to be between 340 and 345 million transactions. Transaction volume for legacy Authorize.Net, or small business platform, is expected to be between 64 and 67 million. Please note that with regard to both platforms, a transaction is counted if it is a billable event.
Non-GAAP net income is expected to be between $8.2 and $8.7 million and non-GAAP earnings per share is expected to be between $0.13 and $0.14 per share based on a weighted average share count of 61 million shares. This compares to guidance of $0.12 per share provided on October 18, 2007 for CyberSource on a pre-acquisition basis.
CyberSource's capital spending for the fourth quarter is expected to be between $0.5 and $1 million. The Company's cash and short-term investment balance as of year end is expected to be approximately $25 million, excluding any future cash that may be consumed under the 2007 $10 million stock repurchase program or non-recurring items.