ACI Worldwide, Inc. (ACIW), a leading international provider of payment systems, today announced financial results for the period ended March 31, 2013.
"ACI accomplished a great deal during Q1, including completing the acquisition of Online Resources," said Chief Executive Officer Philip Heasley. "This transaction adds electronic bill payment to our payments capabilities, which will help us provide highly valued functionality to our financial institution customers. Additionally, our new sales bookings, net of term extensions were solid, growing 19% over last year, or roughly 10% excluding Online Resources' contribution. We are excited and confident about the remainder of 2013. Our ability to provide increased value to our customers and growth to our investors has never been better."
FINANCIAL SUMMARY
Online Resources Acquisition
ACI completed the acquisition of Online Resources on March 11, 2013 and our first phase of cost savings initiatives is substantially complete. Following these efforts, we expect to generate $19.5 million in annual cost synergies, of which $12 million should be realized in 2013. The acquisition adds a full-service electronic bill payment platform to our suite of products, a fast growing Biller Direct business and a significant base of biller connections that can be leveraged through innovation, technology and cost efficiencies.
Updated Outlook
We are increasing our FY 2013 guidance to account for the recently completed Online Resources acquisition. We now expect FY 2013 non-GAAP revenue to be between $895 and $915 million, non-GAAP operating income of between $170 and $180 million and adjusted EBITDA of between $266 million and $276 million. In addition, we expect revenue in the first half of 2013 to represent roughly 41-42% of our full year total. While this is slightly lower than our historical average, our strong pipeline and our visibility into the timing of implementations provide us comfort with this full year guidance. Online Resources' recurring revenue will slightly moderate our historic seasonality.
Financial Results for Q1
Q1 non-GAAP revenue was $163 million, an increase of $21 million, or 15%, over Q1 2012. GAAP revenue of $162 million was an increase of $24 million from Q1 of 2012. The increase was due to contribution from both Online Resources and a full quarter of S1, offset by a $15 million decline in non-recurring revenue, split between incidental capacity and "go-live" events. Monthly recurring revenue grew to $119 million, up $30 million, or $8 million excluding Online Resources and incremental S1 contribution. This represented 73% of total revenue in the quarter.
New sales bookings, net of term extensions, which is the key driver of our growth, was up 19% in the quarter, or 10% excluding the contribution from Online Resources. Our 60-month backlog increased by $671 million, after adjusting for foreign currency fluctuations, of which $660 million was due to Online Resources. Our 12 month backlog increased $154 million, after adjusting for foreign currency fluctuations, of which $138 million was due to OnlineResources.
Due primarily to the decline in non-recurring revenue, non-GAAP operating income was $4 million, or $14 million below last year's number. Consolidated GAAP operating loss was $4 million for the quarter, versus a loss of $2 million last year. Adjusted EBITDA of $22 million was $9 million below last year's $31 million. Non-GAAP net income was $3 million, or $0.07 per diluted share, in Q1 2013, versus non-GAAP net income per diluted share of $0.28 last year. GAAP net loss was $2 million, or ($0.05) per diluted share, for both Q1 2013 and Q1 2012.
We ended the quarter with $112 million in cash on hand, up from $76 million as of December 31, 2012. We ended the quarter with a debt balance of $671 million. Our consolidated billed and unbilled receivable balance declined $35 million during the quarter, excluding the addition of Online Resources. Operating free cash flow ("OFCF") for the quarter was $34 million, up $30 million from $4 million in Q1 of last year.