S1 Corporation (Nasdaq: SONE), a leading global provider of customer interaction financial and payment solutions, today announced financial results for the fourth quarter and full year ended December 31, 2007.
GAAP earnings were $0.11 per share from continuing operations for the fourth quarter of 2007 which was a $0.28 improvement over the $0.17 per share loss in the fourth quarter of 2006. These figures include stock based compensation of $600,000 and $1.8 million in the fourth quarter of 2007 and 2006, respectively. For the full year, GAAP earnings were $0.32 per share from continuing operations in 2007 compared to a loss of $0.17 per share for 2006. These figures include stock based compensation of $8.5 million and $5.5 million in 2007 and 2006, respectively.Total revenue for the fourth quarter of 2007 increased six percent to $53.4 million, with license revenue increasing 30 percent compared with the fourth quarter of 2006. Total revenues for 2007 increased seven percent to $204.9 million from $192.3 million in 2006. From 2006 to 2007, revenue from our largest customer declined $4.5 million while revenue from all other customers grew approximately 11.8 percent.Net cash provided by operating activities increased to $32.3 million in 2007 from $3.5 million in 2006.EBITDA for the fourth quarter of 2007 was $9.5 million compared to a negative $10.0 million in the fourth quarter of 2006. For the full year 2007, EBITDA was $29.6 million compared to a negative $3.1 million for 2006. EBITDA includes stock based compensation expense, and is described and reconciled to our GAAP income from continuing operations below.(1)
Significant customer additions during 2007 included:
- Three of the top 15 banks in the United States
- One of the largest banks in southeast Asia
- One of the largest banks in the Middle East
- One of the largest merchant acquirers in the Middle East
- One of the largest fast food companies in the world
- One of the largest telecommunications companies in the world
- The largest ATM manufacturer in the world
The Company repurchased 2.0 million shares of its common stock for $15.7 million during the fourth quarter ofrter of 2007, bringing repurchases under the program from inception in May 2007 to 6.6 million shares for $50.3 million.
"We posted strong year-over-year growth in revenue and earnings and achieved several significant milestones during 2007, including licensing S1 Enterprise to three top 15 U.S. banks, adding more than 20 new Postilion customers, and increasing customer satisfaction across the company," said Johann Dreyer, Chief Executive Officer of S1. "I am very pleased with our performance in 2007. We have turned S1 into a profitable organization that is well positioned for the future. As a result, we are targeting 2008 revenues of $216 million to $220 million and GAAP earnings of $0.37 to $0.40 per share."
The Company's estimated range of GAAP EPS for 2008 includes approximately $8 million of stock based compensation expense, and assumes no impact from possible changes in the income tax valuation allowance during 2008.
(1) EBITDA Reconciliation
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