S1 Corporation (Nasdaq: SONE), a leading global provider of customer interaction software solutions for financial and payment services, today announced that its Chief Financial Officer, John Stone, will leave the Company effective immediately to focus his attention on a previously disclosed personal matter dating back to July 2006.
In connection with Mr. Stone's departure, the Company and Mr. Stone have entered into a consulting arrangement pursuant to which Mr. Stone will provide consulting services as requested by the Company's Board of Directors from time to time. Steve Dexter, the Company's Vice President and Corporate Controller, has been appointed Principal Accounting Officer.
"The Board of Directors and I support John's decision to leave the company to focus his attention on addressing a personal matter," said Johann Dreyer, Chief Executive Officer of S1. "We would like to thank him for his hard work and leadership during his four years at S1 and are pleased that he will be available to assist the Company as we transition to a new Chief Financial Officer."
Separately, S1 Corporation (Nasdaq: SONE), a leading global provider of customer interaction financial and payment solutions, today announced financial results for the second quarter ended June 30, 2008.
- GAAP earnings were $5.1 million or $0.09 per share for the second quarter of 2008, a $0.01 increase over earnings of $4.9 million or $0.08 per share for the second quarter of 2007. GAAP earnings were $10.3 million or $0.18 per share for the six months ended June 30, 2008, a $0.05 increase over earnings of $7.9 million or $0.13 per share for the six months ended June 30, 2007.
- Total revenue for the second quarter of 2008 increased seven percent to $56.5 million from $52.6 million in the second quarter of 2007. Total revenue for the six months ended June 30, 2008 increased 11 percent to $111.2 million from $100.2 million in the six months ended June 30, 2007.
- Adjusted EBITDA for the second quarter of 2008 was $11.1 million compared to $10.8 million in the second quarter of 2007. Adjusted EBITDA for the six months ended June 30, 2008 was $22.0 million compared to $18.2 million in the six months ended June 30, 2007. Adjusted EBITDA does not include stock based compensation expense, and is described and reconciled to GAAP net income below. (1)
- Net cash provided by operating activities was $16.3 million for the six months ended June 30, 2008, a $3.1 million improvement over the six months ended June 30, 2007. The Company ended the second quarter of 2008 with $80.7 million in cash, cash equivalents and short-term investments.
- Total revenue from international operations for the second quarter of 2008 increased 24 percent to $15.7 million from $12.6 million in the second quarter of 2007. Total revenue from international operations for the six months ended June 30, 2008 increased 37 percent to $30.5 million from $22.3 million in the six months ended June 30, 2007.
- Two of the top 25 banks in the United States licensed the S1 Enterprise Corporate Banking application, the second S1 Enterprise application licensed by each of these financial institutions in the past year.
- We expect $40 - $43 million in revenue from State Farm in 2008, $35 - $39 million in revenue in 2009, and that this annual spend will continue to decrease thereafter as our work for State Farm concludes by the end of 2011.
"I am pleased with our operating results and believe that our second quarter performance continues to demonstrate the value of having a broad range of products and customers around the world," said Johann Dreyer, Chief Executive Officer of S1. "Our sales pipeline remains strong and we expect full-year 2008 revenue and Adjusted EBITDA to be on the higher end of the guidance we provided last quarter. I am also pleased with the progress we are making towards defining the scope and effort State Farm will require from us through 2011, including determining the range of their expected revenue contribution in 2009. I believe that this longer-term visibility will enable us to shift the resources and capital that have been focused on supporting the work at State Farm to efforts associated with supporting the worldwide growth opportunities we see in other parts of our business."
(1) Adjusted EBITDA Reconciliation
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