19 August 2017
visit www.avoka.com

Digital Insight reports Q2 earnings rise

27 July 2005  |  1459 views  |  0 Source: Digital Insight

Digital Insight Corp. (Nasdaq: DGIN), the leading online banking provider, today announced record financial results for its second quarter ended June 30, 2005.

Revenues for the second quarter ended June 30, 2005 increased 12% to $52.3 million from $46.9 million for the quarter ended June 30, 2004. The Company's GAAP (Generally Accepted Accounting Principles) net income in the second quarter increased 41% to $6.4 million, or $0.18 per diluted share, from $4.5 million, or $0.13 per diluted share, in the second quarter of 2004.

Excluding amortization of intangible assets from acquisitions, net of tax, non-GAAP net income in the second quarter increased 31% to $7.6 million, or $0.21 per diluted share, from non-GAAP net income of $5.8 million, or $0.16 per share, in the second quarter of 2004. A reconciliation of GAAP results to non-GAAP results is provided as part of this press release.

Cash Flow, Balance Sheet and Stock Repurchase Trends

Cash flow from operations in the second quarter ended June 30, 2005 remained very strong at $15.8 million, up from $14.1 million in the second quarter of 2004. During the second quarter, the Company utilized its operating cash flow and balance sheet strength to repurchase 1.04 million common shares at an average cost of $24.05 per share, completing its second $25 million stock repurchase program in the past 12 months. At June 30, 2005, the Company had cash and investment balances of $101.0 million and no long-term debt.

Internet Banking revenues increased 13% versus the second quarter a year ago, driven by strong growth in online bill payers and Internet banking end users. Business banking revenues increased 14% due primarily to rapid growth in business end users of the Company's hosted product lines. Lending revenues decreased 6% compared to a year ago, reflecting client attrition during late 2004 that was partially offset by $500,000 in revenue resulting from the license of the Company's new loan origination system to a financial technology vendor.

"We delivered another strong quarter with solid top-line growth, strong sales bookings, exceptional cash flows, and record operating margins," commented Digital Insight Chairman, President and CEO Jeff Stiefler. "Our continuing improvements in operating profitability demonstrate the true scalability of our business model and data center infrastructure. Considering our subscription-based business model and growing momentum in online bill payment, we see considerable potential for further margin expansion as bill pay penetration increases from current adoption levels among our 35 million potential end users."

Stiefler continued, "I am very encouraged by our strong sales bookings and partnership activity during the quarter that sets the stage for continued profitable growth, and underscores our improving outlook in online business banking for larger financial institutions. Recent sales wins and partnership contracts include:

  • Our largest-ever "conversion" win with VyStar Credit union, a $2.9 billion institution that will migrate its 110,000 active Internet banking end users onto Digital Insight's online banking platform by year end.

  • A new five-year agreement to resell Metavante's bill payment and bill presentment services that locks in market-leading pricing for Digital Insight clients, results in new product interfaces for improved implementations and greater functionality between Digital Insight and Metavante products, and expands our cooperative marketing initiatives to drive end user adoption.

  • An expanded strategic partnership with a leading core data processor to serve as the core processor's exclusively-endorsed provider of online banking and cash management products for its financial institution clients.

  • A new strategic alliance with CashEdge, whereby Digital Insight will serve as the exclusive distributor to small-to-mid-size financial institutions for CashEdge's instant account opening and funding solution. The five-year partnership has been structured to provide Digital Insight with all the elements of an ideal partnership: exclusive distribution rights to our target market, market-leading pricing on new product developments that benefit our clients, and the ability to participate financially, through a warrant, in the valuation increase we expect to help CashEdge achieve.

  • New contracts with two mid-size regional banks that will deploy our outsourced Corporate Banking products, including RG-Premier, an $8 billion bank, and Johnson Bank, a $3 billion institution, demonstrating our improved outlook in Business Banking for larger financial institutions.

  • An expanded strategic alliance with Fiserv's Summit, XP and Users business units to include our new multi-channel online loan origination system, DeskTopLender Premium, as an authorized lender solution for their financial institution clients.

  • A new strategic partnership with Cyota to provide Digital Insight clients with the industry's leading anti-phishing solution, protecting banks and credit unions from increasingly sophisticated forms of online fraud."

    2005 Financial Guidance

    "Based on our solid financial results during the first half of 2005 and growing operating profitability, we are increasing our 2005 guidance for diluted earnings per share and, at the same time, narrowing our 2005 revenue guidance around the mid-point of our prior guidance range," Stiefler concluded.» Download the document now 41.6 kb (Adobe Acrobat Document)
  • Comments: (0)

    Comment on this story (membership required)

    Related company news


    Related blogs

    Create a blog about this story (membership required)
    visit www.niceactimize.comvisit www.worldpaymentsreport.comdownload the paper now

    Top topics

    Most viewed Most shared
    Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
    7709 views comments | 22 tweets | 23 linkedin
    Norwegian banks and startups form fintech clusterNorwegian banks and startups form fintech...
    7313 views comments | 19 tweets | 23 linkedin
    hands typing furiouslyWhy Blockchain Might Not Be The Future For...
    6040 views 1 | 5 tweets | 3 linkedin
    RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
    6034 views comments | 10 tweets | 7 linkedin
    Apple sidelined as Beijing transit system launches payments appApple sidelined as Beijing transit system...
    5867 views comments | 11 tweets | 9 linkedin

    Featured job

    Find your next job