Bottomline Technologies (EPAY), a leading provider of payments and invoice automation software and services, today reported financial results for the fourth quarter and fiscal year ended June 30, 2005.
Revenues for the fourth quarter were $26.3 million compared with $22.4 million in the fourth quarter of last year. Net income for the fourth quarter was $2.2 million, or net income per share of $0.11, compared with a net income of $417,000 and a net income per share of $0.02 in the fourth quarter of last year, representing a $1.8 million increase in net income.
During the fourth quarter of 2005, operating expenses were $13.1 million compared to $12.1 million for the same period the prior year. Included in operating expenses for the quarters ended June 30, 2005 and 2004 were acquisition-related expenses of $869,000 and $972,000 respectively. Excluding the acquisition-related expenses, non-GAAP net income for the fourth quarter was $3.1 million, or non-GAAP net income per share of $0.16, compared with non-GAAP net income of $1.4 million, or non-GAAP net income per share of $0.08 in the fourth quarter of last year. The fourth quarter non-GAAP operating results represent an increase of $1.7 million.
"The solid performance in our fourth quarter underscores the results we achieved for the entire year, highlighted by full year revenue growth of 17% and a three times improvement in earnings," said Joe Mullen, CEO of Bottomline. "In addition to good current results, the business improved its future outlook with an increased backlog from strong customer order activity and a successful secondary stock offering. Bottomline enters the first quarter of the current fiscal year from a position of both opportunity and strength."
Revenues for the year ended June 30, 2005 were $96.5 million compared with $82.1 million last year. Net income for the year ended June 30, 2005 was $5.9 million, or net income per share of $0.31, compared with a net loss of $2.4 million and a net loss per share of $0.15 last year, representing a $8.3 million improvement in net income.
During the year ended June 30, 2005, operating expenses of $49.8 million included net acquisition-related charges of $3.2 million. Excluding these acquisition-related items, non-GAAP net income for the year ended June 30, 2005 was $9.1 million, or non-GAAP net income per share of $0.48, compared with non-GAAP net income of $2.7 million, or non-GAAP net income per share of $0.16 in the same period of last year. This year's non-GAAP operating results represent a $6.4 million increase from the prior year.
Major North American organizations such as GMAC Residential Capital, Feld Entertainment (parent of Ringling Brothers and Barnum & Bailey Circus), American Hospital Association, Hard Rock Casino and Nautilus selected Bottomline's platforms to automate and enhance financial processes.
Bottomline's payments solutions continued to gain broad adoption across the banking industry, adding UMB Bank (United Missouri Bank) and Colonial Bank to its growing list of global customers during the quarter, and expanding the relationship with Fifth Third Bank.
Received 191 new orders during the quarter for Bottomline's BACSTEL-IP software solutions from leading UK-based organizations such as Bank of America, British Airways, Co-Op Group Insurance and Accenture HR.
Signed a major utility company and a regional insurance carrier during the quarter to Legal eXchange, Bottomline's Web-based legal spend management solution.
Company and Product Highlights:
Completed a secondary offering of common stock in July 2005, resulting in the sale of 3,560,000 new shares of its common stock generating proceeds of approximately $47 million. Including the offering proceeds, Bottomline's cash and investment position at June 30th would have been approximately $83 million.
Acquired HMSL Group Ltd, a UK-based accounts payable automation services firm, in April 2005. HMSL's customers include Gillette, 3M, Nestle, Arla Foods and Bank of Ireland.
Signed a software license agreement with Oracle, enabling Bottomline to embed Oracle Database 10g in current versions of its payments automation products. Through this agreement, Bottomline will be able to take advantage of new opportunities created by the growing demand for Oracle 10g Database and lower total cost of ownership for customers.
Seperately, Bottomline Technologies announced it has appointed former Microsoft executive Michael Kosek as vice president and general manager.
Mr. Kosek brings to Bottomline more than 25 years of software industry experience, including 14 years with Microsoft. Most recently serving as the general manager for Microsoft's New England operation, Kosek expanded the company's regional footprint through a variety of programs that increased product and consulting services revenue, overall customer satisfaction and channel partner opportunities.
"Throughout his career Mike has demonstrated the leadership qualities to execute and overachieve on identified strategic opportunities," said Rob Eberle, President and COO, Bottomline Technologies. "His addition to the senior management team will prove invaluable as we seek to broaden the adoption of our solutions in the market."
Prior to his role as general manager, Kosek served as East Region Technology Director. Before joining Microsoft, Kosek held positions with Ungermann-Bass, Inc. and Unisys Corporation.Download the document now 37.4 kb (Adobe Acrobat Document)