Fundtech, a leading provider of global electronic payment, settlement and cash management solutions, today announced financial results for the fourth quarter and full year ended December 31, 2008. Fundtech posted quarterly revenues of $29.8 million, a 1% increase year-over-year, compared to fourth quarter revenues of $29.4 million in 2007, and a 5% decline compared to third quarter 2008 revenues of $31.5 million.
On a GAAP (Generally Accepted Accounting Principles) basis, Fundtech reported a net loss of ($2.2) million or ($0.14) per diluted share, for the fourth quarter of 2008 compared with net income of $2.7 million, or $0.16 per diluted share, in the fourth quarter of 2007, and net income of $1.5 million, or $0.09 per diluted share, in the third quarter of 2008.
Excluding stock-based compensation, amortization of intangibles, impairment of goodwill and other intangible assets, impairment of marketable securities, and deferred taxes Fundtech's adjusted net income for the fourth quarter of 2008 was $0.8 million, or $0.05 per diluted share, compared with $3.6 million, or $0.22 per diluted share, in the fourth quarter of 2007 and $3.3 million, or $0.20 per diluted share, in the third quarter of 2008.
For the year ended December 31, 2008, revenues increased 16% to $121.0 million from $104.6 million in 2007. GAAP net income in 2008 was $1.2 million, or $0.08 per diluted share, compared with net income of $7.1 million or $0.43 per diluted share, in 2007. Excluding stock-based compensation, amortization of intangibles, impairment of goodwill and other intangible assets, impairment of marketable securities, and deferred taxes Fundtech's non GAAP net income for 2008 was $8.9 million, or $0.54 per diluted share, compared to $11.5 million, or $0.69 per diluted share, in 2007. (See Schedule A Attached to this Press Release -- Reconciliation to GAAP).
"Despite the uncertain market conditions and the slow down in the fourth quarter we posted double digit revenue growth in 2008 and generated cash flow from operations of $13.7 million" said CEO Reuven Ben Menachem. "Looking towards 2009, we believe that the slow down will continue at least during the first six months of the year. Despite the weakness with the global banks we continue to have good success selling Global PAYplus to large regional banks. We have also taken steps to control costs and I believe that we are well positioned for renewed growth when market conditions improve."
* During the fourth quarter excluding Accountis Fundtech closed 98 new deals and added 7 new bank customers.
* During the fourth quarter Fundtech closed 10 new system sales including 6 U.S. Payments, 1 Global CASHplus, 1 CLS and 2 at BBP.
* During the quarter Fundtech closed a sale of Global PAYplus system to a large European bank.
* During the fourth quarter Fundtech recorded financial expenses of approximately $800,000 due to a decline in the value of balances of cash and accounts receivables denominated in non-dollar currencies.
* During the fourth quarter Fundtech recorded a $2 million one time charge due to the impairment of goodwill and other intangible assets recorded in connection with the acquisition of Radius Partners.
Fundtech today also announced the election of Avi Fischer to the position of Chairman of the Board of Directors. Mr. Fischer is the Deputy Chairman of the IDB Group, Israel's largest holding group, and Co-Chief Executive Officer of Clal Industries and Investments (TASE: CII). Mr. Fischer is also the Chairman of Clal Bio Technologies (TASE: CBI) and serves on the boards of numerous Israeli and International companies. In addition, Mr. Fischer serves as Co-Chairman of "Matan - Your Way to Give" -- Israel's largest philanthropic organization.
Gideon Argov will remain in the company as Vice Chairman.
The Audit Committee and Board of Directors of Fundtech have approved compensation for Mr. Fischer in an amount not to exceed the compensation paid to any other director of the company. Under Israel's Companies Law, this compensation will take effect provided that the company does not receive written notices of objection from shareholders holding 1% or more of the company's shares, in the aggregate, during the 14 days following publication of this announcement.