Bottomline posts Q4 income rise

Bottomline Technologies (NASDAQ: EPAY), a leading provider of collaborative payment, invoice and document automation solutions, today reported financial results for the fourth quarter ended June 30, 2010.

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Revenues for the fourth quarter were $41.5 million, an increase of $6.6 million, or 19%, from the fourth quarter of last year. Subscriptions and transactions revenue increased 54% from the fourth quarter of last year to $11.9 million.

Gross margin for the fourth quarter was $23.0 million, an increase of $3.2 million from the fourth quarter of last year. Net income for the fourth quarter was $1.1 million, or diluted net income per share of $0.04.
Core net income for the fourth quarter was $6.8 million after excluding acquisition-related and restructuring expenses of $3.3 million and equity-based compensation of $2.3 million. Core net income increased $1.5 million, or 28%, from the fourth quarter of last year. Core earnings per share was $0.24 as compared with $0.22 in the fourth quarter of last year.

"Revenue growth of 19% highlighted a very strong quarter capping a very successful fiscal year," said Rob Eberle, President and CEO of Bottomline Technologies. "The quarter's strong financial performance demonstrates our focus on customer needs and our execution against our strategic plan. Our revenue growth, and in particular our strong growth in recurring revenues, helped drive core net income levels to almost double the prior fiscal year. In addition, with a larger cash balance we are well positioned to pursue strategic acquisitions to drive additional incremental growth. As we enter fiscal 2011, we are excited about the prospects for Bottomline Technologies."

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