Revenues for the fourth quarter were $54.2 million, an increase of $12.8 million, or 31%, from the fourth quarter of last year. Subscriptions and transactions revenue increased 44% from the fourth quarter of last year to $17.1 million.

Gross margin for the fourth quarter was $28.8 million, an increase of $5.8 million from the fourth quarter of last year. Net income for the fourth quarter was $30.1 million, or net income per share of $0.87. Fourth quarter net income includes a non-cash income tax benefit of $27.4 million arising from the release of certain valuation allowances on the Company's US-based deferred tax assets.

Core net income for the fourth quarter was $9.9 million. Core net income increased $3.2 million, or 47%, from the fourth quarter of last year. Core net income excludes the income tax benefit associated with the release of a deferred tax valuation allowance of $27.4 million, acquisition-related expenses of $4.2 million, restructuring expenses of $0.4 million and equity-based compensation of $2.7 million. Core earnings per share was $0.29.

Revenues for the twelve months ended June 30, 2011 increased to $189.4 million from $158.0 million last year. Net income for the twelve months ended June 30, 2011 was $35.9 million, or net income per share of $1.07. Fiscal 2011 net income includes a non-cash income tax benefit of $27.4 million arising from the fourth quarter release of a valuation allowance on the Company's US-based deferred tax assets.

Core net income for the twelve months ended June 30, 2011 was $35.4 million after excluding the income tax benefit associated with the release of a US deferred tax asset valuation allowance of $27.4 million, acquisition-related expenses of $14.3 million, restructuring expenses of $1.1 million and equity-based compensation of $11.5 million. Core net income increased $8.8 million or 33% from theom the twelve months ended June 30, 2010. Core earnings per share was $1.06 for the twelve months ended June 30, 2011 as compared with $0.99 in the same period last year.

"Revenue growth of 31% highlighted a very strong fourth quarter in which our financial performance exceeded expectations in every key metric," said Rob Eberle, President and CEO of Bottomline Technologies. "The results for the quarter completed a strong fiscal 2011 in which we drove financial performance to new levels, invested in key new product
launches and completed several strategic acquisitions, including Allegient Systems which closed during the fourth quarter. We enter fiscal 2012 with a large backlog, solid pipeline and confident of our ability to continue to execute against our strategic plan."

Fourth Quarter Customer Highlights
 Leading organizations, including Aviva, Ceva Logistics, Co-Operative Insurance Society Ltd., Clarks International, Happy State Bank, ING Bank, Key Technology, Lloyds Banking Group, Mediterranean Bank, Land O'Lakes, Livingston International, Morgan Stanley Smith Barney, Pfizer, Prudential Health Services, SEI, Sun Life Financial and Thomas Cook UK chose Bottomline's payment automation solutions.
 Selected by a top five global bank to handle hosted payments capabilities which creates new functionality that will be rolled out to the bank's corporate cash management customers.
 Chosen by an AM Best Top 200 insurer to provide legal invoice automation and went live with seven clients during the quarter, including a major Canadian insurer and a leading international retailer, which will use Bottomline's SaaS-based technology to automate, manage and control their legal spend.
 Selected by ABN Amro, Acme Brick, Bartlett Tree Company, British Sugar, Del Monte Fresh Produce Inc., Detector Electronics, Federal Express Europe, FracTech Services, GE Money Bank, Honda, Layne Christensen, Life Technologies, Merit Medical Systems, National Oilwell, Pool Corporation, Quanta Services, TJX UK and Ventura Foods to provide transactional document automation solutions.
 Increased penetration into the healthcare vertical with both new and existing customers, including Advocate Condell Medical Center, Bellco Health, John Muir Physician Network, Johnson and Johnson Medical Limited, Memorial Hermann Healthcare System, Promedica Health Systems, Sisters of Mercy Health, Texas Children's Hospital and Tourney Healthcare System.

Fourth Quarter Strategic Corporate Highlights
 Acquired Allegient Systems, which established Bottomline as the clear leader in the legal invoice automation market.
 Announced that Paymode-X® , Bottomline's business-to-business payments and
invoicing network, has surpassed 140,000 vendors.
 Announced new electronic invoicing service over the SWIFT network for non-SWIFT members, opening access for banks to offer financing to vendors on the Paymode-X network.