Bottomline Technologies (NASDAQ: EPAY), a leading provider of payments and invoice automation software and services, today reported financial results for the first quarter ended September 30, 2005.
Revenues for the first quarter were $24.7 million compared with $21.7 million in the first quarter of last year. Net income for the first quarter was $147,000, or net income per share of $0.01, compared with net income of $679,000 and net income per share of $0.04 in the first quarter of last year. The quarterly results for the three months ended September 30, 2005 include approximately $1.7 million of expense associated with stock-based compensation as a result of Bottomline's adoption on July 1, 2005 of accounting rules that require the expense recognition of all stock-based awards.
During the first quarter, operating expenses of $14.0 million included net acquisition-related amortization of intangible assets of $887,000 and stock-based compensation expense of $1.7 million. Excluding these acquisition-related and stock compensation items, non-GAAP net income for the first quarter was $2.7 million, equating to non-GAAP net income per share of $0.12, compared with non-GAAP net income of $1.6 million and non-GAAP net income per share of $0.09 for the first quarter of last year. The first quarter operating results represent an improvement of approximately $1.1 million in non-GAAP net income over the same period of last year.
"We are pleased with another strong quarter of customer acceptance resulting in year-over-year growth of orders, revenue and non-GAAP operating profit," said Joe Mullen, CEO of Bottomline Technologies. "We believe that these operating results, combined with a strong cash position, provide the business with the foundation to capture future opportunities."
- Major North American organizations such as Investors Bank & Trust, DI Foodservice, Konica Minolta Business, Lennox International Inc., New York University and the Air Force Services Agency selected Bottomline's solutions to automate financial processes.
- Sprint/Nextel, the recently combined cellular provider, selected the company's hosted Legal eXchange solution to automate the receipt of legal invoices.
- Received new orders during the quarter for Bottomline's BACSTEL-IP software solutions from leading UK-based organizations such as O2, TK Maxx and First Title. Over 3,400 customers have now signed on to Bottomline's BACSTEL-IP subscription offering.
- Added new customers including Alticor, DR Horton, Pharmavite, Cincinnati Public Library, O'Charleys, Pearson Education and Pittsburgh Airport Authority to the list of organizations utilizing Bottomline's document output management solutions.
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- Announced expanded functionality and new capabilities for Legal eXchange. Legal eXchange version 6.0 is a next-generation, Web-based legal spend management solution that enables corporate legal and insurance claims departments to streamline invoice management processes, reduce costs and gain better insight into outside counsel performance.
- Announced the expansion of the Electronic Banking Platform with the release of WebSeries Remote Hub to facilitate the secure, unattended transfer of payments-related information between corporate clients and banks. Other enhancements to the platform include new Pan-European payments and reporting capabilities, enabling European customers to consolidate multiple banking connections in anticipation of the new Single European Payments Area (SEPA) industry standard.
- Bottomline's Create!form product suite was named to the list of KMWorld Magazine's "Trend-Setting Products of 2005".
- Announced the appointment of Jeffrey Leathe to the company's Board of Directors. Mr. Leathe is the former executive vice president and chief financial officer of Apogent Technologies.
- Announced the appointment of Michael Kosek as Vice President and General Manager, Financial Process Solutions North America. Mr. Kosek is the former General Manager of New England operations for Microsoft.