Total revenue for the fourth quarter of 2008 increased 10 percent to $58.6 million from $53.4 million in the fourth quarter of 2007. Total revenue for the full year ended December 31, 2008 increased 11 percent to $228.4 million from $204.9 million in 2007.

GAAP earnings were $5.3 million or $0.10 per share (diluted) for the fourth quarter of 2008, a $0.01 decrease over GAAP earnings of $6.4 million or $0.11 per share (diluted) for the fourth quarter of 2007. GAAP earnings were $21.9 million or $0.38 per share (diluted) for the full year ended December 31, 2008, a $0.06 increase over GAAP earnings of $19.5 million or $0.32 per share (diluted) in 2007. These figures include stock based compensation expense of $3.5 million and $0.6 million in the fourth quarter of 2008 and 2007, respectively, and $8.1 million and $8.5 million for the full years ended December 31, 2008 and 2007, respectively.

Adjusted EBITDA for the fourth quarter of 2008 increased four percent to $10.5 million from $10.1 million in the fourth quarter of 2007. Adjusted EBITDA for the full year ended December 31, 2008 increased 13 percent to $43.0 million from $38.1 million in 2007. Adjusted EBITDA does not include stock based compensation expense, and is described below (1) and reconciled to GAAP net income in Tables 4, 5 and 6.

"We posted strong results in 2008 and ended the year with one of the best quarters of deal signings in several years," said Johann Dreyer, Chief Executive Officer of S1. "While we are not immune to the economic uncertainty and marketplace challenges, we believe our recurring revenue base, broad range of products and customers around the world, and strong balance sheet positions us to generate solid growth in revenue and profitability in this difficult economic environment. With the opportunities we see in our sales pipeline, we are currently targeting 2009 revenue of $240 to $245 million and Adjusted EBITDA of $47 to $50 million."

Fourth quarter customer highlights include:

• Postilion licensed its payments processing and card management software to its fifth top 10 retailer in the U.K. and to Arab National Bank, one of the top banks in the Middle East; and
• S1 Enterprise signed significant new work orders with three current customers and licensed multiple applications to a new customer in the U.S.
• Total revenue from international operations for the fourth quarter of 2008 increased three percent to $15.5 million from $15.1 million in the fourth quarter of 2007. Total revenue from international operations for the full year ended December 31, 2008 increased 26 percent to $63.8 million from $50.7 million in 2007.
• Net cash provided by operating activities was $34.1 million for the full year ended December 31, 2008, a $2.8 million improvement over 2007.
• The Company repurchased 2.8 million shares of its common stock for $14.9 million during the fourth quarter of 2008, and 4.4 million shares for $25.1 million for the full year ended December 31, 2008. As of December 31, 2008, the Company had $65.3 million in cash, cash equivalents and short-term investments.

(1) Adjusted EBITDA

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