S1 swings to Q1 net profit

Source: S1 Corporation

S1 Corporation (Nasdaq:SONE), a leading global provider of payments and financial services software solutions, today announced financial results for the first quarter ended March 31, 2011:

Financial Results and Operating Highlights

-- Total revenue increased 13% to $57.8 million in the first quarter of 2011 compared with $51.2 million in the first quarter of 2010. This increase was due primarily to growth in Software licenses revenue across all segments, higher Professional services revenue in our Payments and Banking: Large FI segments, and higher Hosting revenue in our Banking: Community FI segment primarily due to the PM Systems acquisition in March 2010.
-- U.S. GAAP net income was $0.7 million, or $0.01 per share, in the first quarter of 2011 compared with U.S. GAAP net loss of $1.1 million, or ($0.02) per share, in the first quarter of 2010. These figures include stock-based compensation expense of $0.8 million and $0.4 million in the first quarter of 2011 and 2010, respectively.
-- Adjusted EBITDA increased 82% to $5.1 million in the first quarter of 2011 compared with $2.8 million in the first quarter of 2010. Adjusted EBITDA does not include stock-based compensation expense and is described below and reconciled to the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP in Tables 4, 5, 6 and 7, provided below.
-- Net cash provided by operating activities was $4.1 million in the quarter ended March 31, 2011 compared with $18.1 million in the quarter ended March 31, 2010. During the first quarter of 2011, the Company paid in full the note payable of $5.0 million related to the Company's corporate headquarters. The Company had cash and cash equivalents of $59.9 million as of March 31, 2011.
-- Revenue backlog, which is discussed in further detail below, in the Company's Payments and Banking: Large FI segments was $64.3 million as of March 31, 2011, a 57% increase compared to $41.0 million as of March 31, 2010.
-- Sales bookings in the Company's Payments and Banking: Large FI segments was $60.9 million in the six months ended March 31, 2011, a 29% increase comparse compared to $47.2 million in the six months ended March 31, 2010.
-- Notable first quarter 2011 contract signings include:

  • A top five bank in Thailand for S1's payments solution;
  • A top three bank in Colombia for S1's payments solution;
  • Another top three bank in Colombia for S1's corporate online banking solution; and
  • A U.S. West-Coast based commercial bank for S1's business online banking solution.

-- The Company raised its full year 2011 financial guidance to $230 to $240 million in revenue and $24 to $28 million in Adjusted EBITDA, up from previous guidance of $225 to $235 million in revenue and $22 to $27 million in Adjusted EBITDA.

"We got off to a good start in 2011," said Johann Dreyer, Chief Executive Officer, S1 Corporation. "In addition to adding nine new customers in the first quarter, we had a very strong quarter of cross-sales into our existing customer base. With the shift in our business model largely behind us and the significant sales opportunities we continue to see around the world, we are raising our 2011 financial guidance."

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