Bottomline Technologies (NASDAQ: EPAY), a leading provider of collaborative payment, invoice and document automation solutions, today reported financial results for the fourth quarter and fiscal year ended June 30, 2009.
Revenues for the fourth quarter were $34.9 million, an increase of $1.6 million from the third quarter. Revenues for the fourth quarter were impacted by $3.1 million on a year over year basis as a result of lower foreign exchange rates. Year over year revenue growth was 6% in the fourth quarter and 14% for the full fiscal year on a consistent currency basis.
Gross margin for the fourth quarter was $19.8 million, an increase of $1.0 million from the prior quarter. Net loss for the fourth quarter was $3.6 million, or net loss per share of $0.15.
Core net income for the fourth quarter was $5.3 million after excluding acquisition-related expenses of $4.1 million and equity-based compensation and restructuring expenses of $4.7 million. Core net income was more than double the $2.6 million reported in the fourth quarter of last year. Core earnings per share was $0.22 as compared with $0.11 last year and $0.15 in the prior quarter.
Cash flow from operations exceeded $6.5 million for the fourth quarter and $24.0 million for the year. Cash and cash equivalents were $50.3 million as of June 30, 2009.
"We had a very strong fourth quarter in terms of both reported financial results and strategic advancement," said Rob Eberle, President and CEO of Bottomline Technologies. "I am pleased to report we have doubled our core net income from a year ago, grown our core operating margin from 7% to 15% and generated strong cash from operations. At the same time, we have increased backlog, grown our pipeline and secured new strategic relationships. We are well positioned to execute on our targeted market opportunities and look forward to successful results in the year ahead."
Revenues for the fiscal year ended June 30, 2009 increased $6.8 million to $138.0 million as compared with $131.2 million last year. Revenues for the year were impacted by $11.0 million on a year over year basis as a result of lower foreign exchange rates. Year over year revenue growth for the year on a consistent currency basis was 14%. Net loss for the fiscal year ended June 30, 2009 was $12.3 million, or net loss per share of $0.51. Core net income for the fiscal year ended June 30, 2009 was $14.9 million, or core earnings per share of $0.62, after excluding acquisition-related expenses of $16.1 million and equity-based compensation and restructuring expenses of $11.0 million.
Fourth Quarter Customer Highlights
- Signed a multi-year contract for Legal eXchangeTM, Bottomline's Software as a Service solution for legal spend management, with one of the nation's Top 20 property & casualty insurers.
- Welcomed significant new customers such as Canon USA, Chemical Financial Corporation, Kip McGrath Education Centres, Medavie Blue Cross, Metropolitan Pier and Exposition Authority, Michelin, Michigan State University, Royal Caribbean Cruises, Sabrix and Seahawk Drilling, which selected Bottomline solutions to increase the efficiency, security and visibility of financial transaction processes.
- Strengthened existing relationship with Raymond James Financial, which increased their investment in Bottomline's WebSeries® Global Cash Management platform to support new cash management initiatives.
- Expanded existing deployments of Bottomline's solutions for payment, invoice and document process automation with customers such as Aviva, Deutsche Bank, Dun & Bradstreet, EDF Energy, Illinois Secretary of State, Raytheon, Stryker Biotech, Warner Music UK, Washington Corporations, Zimmer, 20th Century Fox Film Corporation, and one of the nation's largest publicly traded multifamily companies.
- Continued to broaden awareness for Bottomline's capabilities and expertise within the Microsoft Dynamics® AX user community with new orders from organizations such DuBois Chemicals, Insulet Corporation, Iroko Pharmaceuticals and ZCL Composites.
- Further supported the need to transition away from paper-driven processes within the healthcare vertical through expanded implementations of Bottomline solutions among hospitals and healthcare providers such as Halifax Regional Hospital, Heritage Valley Health System, Lourdes Health Network and Montefiore Medical Center.
Fourth Quarter Strategic Corporate Highlights
- Launched the 'Think Green' awards, a program designed to showcase Bottomline customers that are helping to reduce the environmental impact of paper-based processes through the use of Bottomline's software solutions.
- Identified by research advisory firm Celent as a 'payments powerhouse' as part of a recent evaluation of online cash management solutions. This latest accolade from industry analysts covering financial services technology follows Aite Group's awarding of a best-in-class ranking to Bottomline for its global cash management capabilities.
- Introduced expanded capabilities for Legal eXchange, providing corporate legal and insurance claims departments with advanced litigation management functionality for greater collaboration, efficiency and control of legal spend.
- Named, for the third year in a row, as a top technology provider serving the insurance industry. As part of the 2009 Insurer's Choice, Bottomline was recognized for demonstrating extensive expertise on the intersection of technology and strategic business objectives, as well as a preferred vendor for helping to develop and enhance insurance products and services.
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