The Company reported revenue of $30.1 million and net income of $1.5 million, or $0.06 per diluted share for the fourth quarter of 2005 as compared to revenue of $28.4 million and a net loss of $950,000, or ($0.04) per diluted share for the third quarter of 2005.

During the three months ended October 31, 2005 and January 31, 2006 respectively, the Company recorded amortization associated with certain acquisition-related intangible assets of approximately $1.5 million. Excluding this item, non-GAAP net income for the three months ended January 31, 2006 was $3.0 million, or $0.12 per diluted share, as compared with non- GAAP net income of $555,000, or $0.02 per diluted share for the three months ended October 31, 2005.

"We are pleased to report that total revenue in the fourth quarter was the Company's highest total quarterly revenue during the fiscal year of 2005, meeting our previously stated guidance," said J.D. (Denny) Carreker, Chairman and Chief Executive Office of Carreker Corporation. "Stronger consulting revenue as well as continued strength in our software license and implementation revenue categories contributed to the improved results. Demand for our new products is increasing, and although in certain situations we are experiencing extended sales cycles and intensified competition in our payments business, we are optimistic about the revenue generating potential for these products during fiscal year 2006 and beyond. Looking forward, we remain confident that our new and existing products will gain further industry adoption and, when combined with our ongoing cost containment initiatives, will result in future revenue growth and profitability."

Revenue for the fiscal year of 2005 was $116.6 million and net income was $2.1 million, or $0.08 per diluted share as compared to revenue of $118.9 million and a net loss of $1.2 million or ($0.05) per diluted share for the full year 2004.

During the twelve months ended January 31, 2005 and 2006, the Company recorded amortization associated with certain acquisition-related intangible assets of approximately $6.0 million. Excluding this item, non-GAAP net income for the twelve months ended January 31, 2006 was $8.1 million, or $0.33 per diluted share, as compared with non-GAAP net income of $4.8 million, or $0.20 per diluted share, for the twelve months ended January 31, 2005.

Business Outlook
Carreker anticipates revenue growth during the 2006 fiscal year due to the availability and anticipated acceptance of several new products and service offerings, which were developed during 2005 as well as new products and services expected to be offered in 2006. However, due to a lengthened decision cycle associated with some of the new products, our overall annual growth in revenue is anticipated to be in the latter half of the year. The Company believes it is well positioned for profitability in 2006 as a result of the anticipated revenue growth coupled with ongoing cost containment efforts.

Download the document now 33 kb (Adobe Acrobat Document)