S1 releases Q1 results

Source: S1 Corporation

S1 Corporation (Nasdaq:SONE), a leading global provider of integrated front office applications for financial institutions, today announced financial results for its first quarter ended March 31, 2005.

Revenue for the quarter ended March 31, 2005 was $62.4 million as compared to $56.1 million for the same quarter in the previous year and $65.2 million in the quarter ended December 31, 2004.

Total license revenue was $13.2 million for the quarter ended March 31, 2005 compared to $11.6 million in the same quarter in the previous year and $17.3 million in the quarter ended December 31, 2004.

Income from continuing operations for the quarter ended March 31, 2005 was $0.7 million, or $0.01 per share, compared to income from continuing operations of $0.01 per share for same quarter the previous year and $0.04 per share for the quarter ended December 31, 2004.

The Company signed 25 Enterprise contracts, of which eight were new relationships and 17 were substantial add-on purchases from existing Enterprise customers.

The Company added 60 new customers to its growing family of more than 4,000 financial institutions and closed approximately 260 cross-sales to existing customers.

The transition to a recurring revenue model prompted the Company to provide new metrics associated with Annualized Recurring Revenue and discontinue providing annual guidance for 2005.

"The large number of add-on contracts signed with existing Enterprise customers this quarter is an important indicator that our customers are seeing real value in purchasing multiple applications and services from a single source," said Jaime Ellertson, chief executive officer of S1 Corporation. "Additional substantiation of our strategy is evidenced by our expanding contractual relationship with Misys, one of the largest international core processors, who agreed to distribute our entire Enterprise suite, which doubles the number of Enterprise products available to be sold by Misys' retail and wholesale banking divisions."

Q1 Operating Highlights

Signed two multi-channel contracts with financial institutions: United Nations Federal Credit Union, the credit union for the 40,000 plus United Nations' employees and members around the world, and St. Louis Bank, a de novo bank.

Our ATM/POS solution was selected by several organizations, including New York Community Bank, to drive its 200+ ATM network.

Global distribution partner Misys extended its relationship to include the right to distribute all S1 Enterprise retail applications, including branch, call center and Internet solutions.

Global compliance initiatives continue to fuel growth in the FRS business, with a strategic new Basel II win in the German market at Hypo Real Estate Bank International.

Shortly after the end of Q1, the Company hired Andrew Kass as senior vice president of product development to lead our global engineering team and David Wyatt as vice president of quality to establish a continuous quality improvement program.Download the document now 45.2 kb (Adobe Acrobat Document)

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