Fundtech Ltd. (NASDAQ: FNDT), a leading provider of global electronic payment, settlement and cash management solutions, today announced its financial results for the second quarter ended June 30, 2005.
Second quarter 2005 revenues were $18.4 million, up 34% year-over-year from $13.7 million in the second quarter of 2004 and up 7% sequentially from $17.2 million in the first quarter of 2005.
On a GAAP (Generally Accepted Accounting Principles) basis, net income for the second quarter of 2005 was $844,000, or $0.05 per diluted share, compared with net income of $388,000, or $0.03 per diluted share, in the second quarter of 2004 and net income of $514,000, or $0.03 per diluted share, in the first quarter of 2005.
Excluding amortization of intangibles and amortization of capitalized software costs, Fundtech's adjusted net income for the second quarter of 2005 was $1.5 million, or $0.10 per diluted share, compared with $1.0 million, or $0.07 per diluted share, in the second quarter of 2004 and $1.2 million, or $0.08 per diluted share, in the first quarter of 2005. (See Schedule A attached to this news release - Reconciliation to GAAP).
"We delivered another quarter of record revenue growth as our Global PAYplus product established itself as a market leader for high-value payment processing," said CEO Reuven Ben Menachem. "Second quarter revenues from Global PAYplus increased 63% year-over-year and now represent 30% of our total revenues."
"Looking forward to the second half of the year, I see continued strength at the high end of the market and I believe that we will continue to experience top and bottom line growth," continued Ben Menachem.
Second quarter highlights:
- Closed 28 new deals and added four new bank customers.
- Closed 6 new system sales: 4 PAYplus USA, 1 Global PAYplus OmniPay and one interbank connectivity.
- In the U.S., closed ASP and disaster recovery services transactions, which are expected to generate $1.3 million of revenues over the next five years.
- A Top Ten Bank in the US acquired Global PAYplus OmniPay to process its low value payments.
- Continued to increase revenues in connection with our new initiative in the securities trading settlement market.
Guidance
The financial guidance provided is current as of today only and the Company undertakes no obligation to update its estimates.
Fundtech is increasing its revenue guidance for the third and fourth quarter of 2005. Earnings per diluted share guidance for the third and fourth quarters remains unchanged.
For the third quarter of 2005, Fundtech expects revenues of between $18.4 million and $18.8 million, GAAP earnings per diluted share of between $0.06 and $0.08 and Adjusted earnings per diluted share, before all amortization expenses, are expected to be in the range of $0.11 to $0.12.
For the fourth quarter of 2005 we expect revenues of between $19.0 million and $19.5 million, GAAP earnings per diluted share of between $0.09 and $0.10 and Adjusted earnings per diluted share, before all amortization expenses, are expected to be in the range of $0.13 to $0.14.
For full-year 2005, Fundtech currently expects 2005 revenues of between $72.9 million to $73.8 million, compared with previous guidance of $70.4 million to $71.7 million. The range for GAAP earnings per diluted share has increased to between $0.24 and $0.26 from prior guidance of between $0.22 and $0.25. Adjusted earnings per diluted share, before all amortization expenses, are expected to be in the range of $0.41 to $0.43, versus a previous range of $0.40 to $0.43.
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