S1's Q2 earnings climb

Revenue for the second quarter ended June 30, 2005 was $62.0 million as compared to $59.4 million for the same quarter in the previous year and $62.4 million in the prior quarter ended March 31, 2005.

Total license revenue for the second quarter ended June 30, 2005 was $13.9 million compared to $9.3 million in the same quarter in the previous year and $13.2 million in the prior quarter ended March 31, 2005.

Income from continuing operations for the second quarter ended June 30, 2005 was $1.9 million, or $0.03 per share, compared to income from continuing operations of $0.01 per share for same quarter the previous year and $0.01 per share in the prior quarter ended March 31, 2005.

The Company's FI Segment signed 28 Enterprise contracts, of which 14 were new relationships and 14 were substantial add-on purchases from existing Enterprise customers.

The Company added more than 90 new customers and closed approximately 250 cross-sales to existing customers.

As announced on July 25, the Board of Directors has appointed James "Chip" S. Mahan III as chief executive officer of the Company.

"My first order of business has been to meet with our employees to better understand their perspective on what we are doing right and our key challenges," said James "Chip" S. Mahan III, chief executive officer of S1 Corporation. "The passion and commitment I see from our team gives me confidence that we have the right people, customers and strategy. I anticipate taking the next 60 to 90 days to define my plan for our success. To more effectively execute our long-term strategy, we plan to work closely with several early customers to ensure that we meet a higher standard of product quality for our Enterprise 3.5 products."

As a result, the Company anticipates that it will release its Enterprise 3.5 products from development in a staggered format, beginning late Q4 and into Q1 2006. Once the products are released, they will enter a Managed Introduction Program, which is designed to enable the entire organization to work with several customers in a real-world production environment.