Corillian Q1 profits fall

Source: Corillian

Corillian Corp. (NASDAQ: CORI), the top provider of online banking, payment and anti-fraud solutions to the financial services industry, today reported financial results for the first quarter ended March 31, 2006.

Revenues for the first quarter were $14.3 million, compared to $13.8 million for the fourth quarter of 2005. Net loss for the first quarter was $971,000, resulting in a diluted net loss per share of ($0.02), compared to a net loss of $39,000 for the fourth quarter of 2005, resulting in a diluted net loss per share of ($0.00). The net loss of $971,000 in the first quarter includes expense of approximately $560,000 related to FAS 123R, which Corillian incurred for the first time in the first quarter of 2006. Pro forma net income - before amortization of acquisition-related intangible assets and stock-based compensation expense - for the first quarter was $15,000, resulting in net income of $0.00 in diluted earnings per share. This compares to pro forma net income before amortization of acquisition-related intangible assets of $384,000 in the fourth quarter of 2005, resulting in $0.01 earnings per share.

"I am pleased with the progress we've made in executing on the vision we described in 2005. Recent product launches and customer wins demonstrate that we are broadening both our product line and our addressable market," said Alex Hart, president and CEO of Corillian. "We continue to gain traction in business banking, payments, and online security, and the investments we've made to make our industry-leading consumer solutions more configurable are resulting in a growing pipeline of opportunities with financial institutions of all sizes. These developments would not be possible, of course, without our continued commitment to providing our customers with great products, unequalled project management skills, and world-class support. The recent launch of Corillian solutions at Capital One, The Golden One, Commerce Bank, and another top 50 U.S. bank is a testament to the value that our customers place on a certain outcome in an uncertain world."

Recent Highlights

People's Bank, an $11 billion financial services company headquartered in Bridgeport, Conn., selected Corillian Consumer Banking as its next-generation online banking system.

Corillian also added a $5 billion community bank and a top 20 credit union to its list of recently acquired customers.

Four customers licensed a Corillian payment warehouse solution, including First Tennessee Bank, a top 50 U.S. bank which decided to upgrade to the latest version of the Corillian Interpose Payments application to help expand its online bill payment services. The Corillian Interpose Payments application was integrated into Corillian's suite of products after the acquisition of InteliData in August 2005.

Corillian and Getronics, a global leader in workspace management IT services, signed a multi-year reseller and systems integration agreement to deliver comprehensive online financial services to financial institutions worldwide. Getronics will resell and implement Corillian’s Voyager platform and online banking applications as its preferred offering for financial institutions looking for a comprehensive, next-generation online solution.

Corillian signed six more deals for its Corillian Intelligent Authentication product during the first quarter. Since its release in October of 2005, 20 leading financial institutions have selected Corillian's Intelligent Authentication as the solution of choice to deliver strong, FFIEC-compliant online authentication services to their online banking users.

Corillian announced results of new performance and scalability tests for its enterprise authentication security product, Corillian Intelligent Authentication. In recent tests, Corillian Intelligent Authentication processed nearly 400 authentication transactions per second, or approximately 34.5 million authentications a day - well beyond other industry solutions.

Corillian and StrikeForce partnered to protect financial institutions' online users with a comprehensive authentication service combining Corillian's Intelligent Authentication with StrikeForce's "Out-of-Band" authentication platform, ProtectID. The joint offering helps to proactively detect fraudulent online activity and prevent illegitimate users from accessing accounts.

Corillian announced the availability of Corillian Personal Money Manager (PMM), a next-generation online banking application that allows financial institutions to provide consumers with enhanced access to rich transactional information and extended account history data that is available 24x7x365 from the convenience of the financial institution's online banking site, even if the bank's core systems are unavailable. A top 50 U.S. financial institution recently converted to Corillian Consumer Banking, including a new online service leveraging Corillian PMM.

Financial Outlook

Corillian will continue to invest in the people, processes, and technologies required to enhance the long-term profitability of its business model. The near-term impact of these investments will be delayed improvement in revenue and earnings growth, primarily due to the long term nature of some of the recurring revenue deals that it is currently pursuing. The company anticipates that second quarter 2006 revenues will be in the range of $13.5 to $15.5 million and GAAP EPS will range from a diluted net loss per share of ($0.03) to ($0.05), based on the current backlog of projects in implementation and potential deals in our sales pipeline. Pro forma results, excluding the amortization of intangible assets related to acquisitions and stock-based compensation expense, are expected to range from a diluted net loss per share of ($0.01) to ($0.03).

Included in its GAAP diluted per share guidance for the second quarter of 2006, Corillian anticipates approximately $600,000 of stock-based compensation expense in accordance with FAS 123R and the amortization of approximately $400,000 of acquisition-related intangible assets.Download the document now 37.7 kb (Adobe Acrobat Document)

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