Exhibit 99.1
Fundtech Contact:
Yoram Bibring
Fundtech Ltd.
Tel: 1-201-946-1100
yoramb@fundtech.com
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FOR IMMEDIATE RELEASE
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FUNDTECH REPORTS FIRST QUARTER 2003 RESULTS
Key Highlights:
*Revenue of $11 million, 4% sequential growth,16%
growth vs. Q1 2002
*GAAP loss per share of 4 cents
*Adjusted EPS of $0.00
*Over last 12 months Cash and marketable
securities increased by $2.7 million to $51 million.
JERSEY CITY, N.J.,-- April 30, 2003,-- Fundtech Ltd. (NASDAQ: FNDT), a
leading provider of global electronic payments, settlement and cash
management solutions, announced today its financial results for the first
quarter of 2003.
Revenues for the first quarter were $11.0 million, 4% higher than the
fourth quarter of 2002, and 16% higher than the first quarter of 2002.
Compared to the fourth quarter, license revenues decreased by $100,000,
service revenues increased by $300,000 and maintenance revenues remained
unchanged. Hardware revenues increased by $200,000.
On a GAAP basis, net loss for the first quarter was $625,000, or $0.04 per
share, compared with a loss of $4.1 million, or $0.29 per share for the
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fourth quarter of 2002 and net loss of $3.9 million or $0.27 per share in
the first quarter of 2002.
Excluding amortization of intangibles and amortization of capitalized
software costs, the adjusted net profit for the first quarter was $4,000,
or $0.00 per share. Excluding amortization of intangibles, amortization of
capitalized software costs and, non-recurring expenses, the adjusted net
loss was $0.9 million, or $0.06 per share, for the fourth quarter of 2002
and the adjusted net loss was $3.7 million, or $0.26 per share, in the
first quarter of 2002. (See Schedule A Attached to this Press Release
Reconciling Earnings to GAAP)
Cash and marketable securities were $51.0 million on March 31, 2003
representing an increase of $8.5 million from December 31, 2002. During the
first quarter of 2003 DSOs decreased by 18 days to 96 days. Compared to
March 31, 2002 Cash and marketable securities increased by $2.7 million
while DSOs decreased from 179 days to 96 days.
"This is the fifth straight quarter in which we are posting improved
revenues and operating results. This quarter was particularly satisfying as
we reached the breakeven point on an adjusted EPS basis." said Reuven Ben
Menachem, Chairman and CEO of Fundtech. "Our next generation products have
enabled us to continue to improve results despite the difficult market
conditions and I believe that we will continue to grow and improve
operating results."
Additional First quarter highlights:
o Closed 35 new deals and added 6 new bank customers.
o Closed ASP and disaster recovery services transactions, which are expected
to generate $3.5 million of revenues over the next 3 to 5 years.
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o Received order from Citibank to implement our flag-ship Global PAYplus
product in the US and Europe.
o Closed 2 new deals for our next generation
cash management product, CASHplus.
Q2 2003 Guidance
Fundtech expects revenues in the second quarter of 2003 to be in the
range of $11.0 - 11.4 million and expects earnings per share before
all amortization expenses to be in the range of zero to a profit of 2
cents. Including all amortization expenses, Fundtech expects GAAP loss
per share to be between 4 cents and 2 cents. Amortization expenses are
estimated to be 4 cents per share in the second quarter of 2003. (This
forecast assumes amortization of approximately $625,000 for the
quarter)
About Fundtech
Fundtech (www.fundtech.com) is a leading provider of software
solutions and services that facilitate payments, settlement and cash
management by enabling businesses and their banks to electronically
manage cash, process payments and transfer funds. The Company's
client-server and Internet software products automate the process of
transferring funds among corporations, banks and clearance systems and
enable businesses to manage global cash positions efficiently and in
real-time. Its solutions have been sold to more than 750 financial
institutions around the globe.
Forward Looking Statements:
Statements included in this Release may contain forward-looking
statements. Such forward-looking statements are made pursuant to the
safe-harbor provisions of the Private Securities Litigation Reform Act
of 1995. Such statements may relate, but are not limited, to
projections of revenues, income or loss, capital expenditures, plans
for growth and future operations, competition and regulation as well
as assumptions relating to the foregoing. Forward-looking statements
are inherently subject to risks and uncertainties, many of which
cannot be predicted or quantified. When used in this Release, the
words, "estimates,"
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"expects," "anticipates," "believes," "plans," "intends," and
variations of such words and similar expressions are intended to
identify forward-looking statements that involve risks and
uncertainties. Future events and actual results could differ
materially from those set forth in, contemplated by or underlying the
forward-looking statements. The factors that could cause actual
results to differ materially from those discussed or identified from
time to time in Fundtech's public filings, including general economic
and market conditions, changes in regulations and taxes and changes in
competition in pricing environment. Undo reliance should not be placed
on these forward-looking statements, which are applicable only as of
the date hereof. Fundtech undertakes no obligation to revise or update
these forward-looking statements to reflect events or circumstances
that arise after the date of this Release or to reflect the occurrence
of unanticipated events.
# # #
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Schedule A to Press Release
Reconciliation to GAAP
(In Thousands, Except Share and Per Share Data)
The following information sets forth Fundtech's calculation of adjusted net
income (loss) as contained in the company's press release:
Three Months Ended
March 31,
---------
2003 2002
---- ----
Reconciliation of net loss to adjusted net loss:
Net income (loss) $ (625) $ (3,888)
Restructuring and related expenses -- 3
Amortization of capitalized software development
costs 394 --
Amortization of other intangible assets 235 221
Impairment and realized losses
on available for sale marketable securities -- 13
-------- --------
Adjusted net income (loss) $ 4 $ (3,651)
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Adjusted net income (loss) per share $ 0.00 $ (0.26)
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Shares used in computing adjusted net income (loss)
per share 14,321,452 14,278,279
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FUNDTECH LTD. AND ITS SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In Thousands)
March 31, December 31,
2003 2002
---- ----
ASSETS
Current assets:
Cash & cash equivalents $ 39,950 $ 26,571
Marketable securities 11,030 15,925
Trade receivables, net 11,736 13,386
Other accounts receivable, prepaid expenses and inventories 1,432 1,256
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Total current assets 64,148 57,138
Long term trade receivables, net 1,414 1,497
Severance pay fund 523 474
Long term deposits 927 1,027
Property and equipment, net 7,385 7,265
Goodwill, net 10,523 10,523
Other assets, net 10,828 11,456
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Total assets $ 95,748 $ 89,380
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Trade payables $ 1,445 $ 1,221
Deferred revenues 11,899 4,959
Accrued restructuring expenses 801 1,523
Employee and payroll accruals 1,229 1,496
Other accounts payable and accrued expenses 4,112 3,309
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Total current liabilities 19,486 12,508
Accrued severance pay 579 527
Accrued restructuring and other expenses 1,074 1,179
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Total liabilities 21,139 14,214
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Shareholders' equity:
Share capital 43 43
Additional paid-in capital 139,851 139,851
Accumulated other comprehensive income (loss) (534) (602)
Accumulated deficit (64,663) (64,038)
Treasury stock, at cost (88) (88)
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Total shareholders' equity 74,609 75,166
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Total liabilities and shareholders' equity $ 95,748 $ 89,380
========= =========
Note: Certain prior year amounts have been reclassified to conform to current
year presentation.
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FUNDTECH LTD. AND ITS SUBSIDIARIES
Consolidated Statements of Operations
(In Thousands, Except Share and Per Share Data)
Three Months Ended
March 31,
--------------------------------
2003 2002
---- ----
Revenues:
Software license fees $ 3,020 $ 2,498
Maintenance 3,476 2,993
Services [a] 4,299 3,836
Hardware sales 244 222
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Total Revenues 11,039 9,549
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Operating expenses:
Software licenses costs 110 246
Maintenance and services costs [a] 4,340 4,356
Hardware costs 204 187
Software development 2,471 4,285
Selling and marketing, net 2,360 2,305
General and administrative 1,669 1,868
Amortization of capitalized software development costs 394 --
Amortization of other intangible assets 235 221
Provision for doubtful accounts -- 124
Restructuring and related expenses -- 3
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Total operating expenses 11,783 13,595
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Operating income (loss) (744) (4,046)
Impairment and realized losses
on available for sale marketable securities -- (13)
Financial income, net 179 206
Income taxes (60) (35)
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Net income (loss) $ (625) $ (3,888)
============ ============
Net income (loss) per share:
Net income (loss) used in computing income per share $ (625) $ (3,888)
Basic income (loss) per share $ (0.04) $ (0.27)
Diluted income (loss) per share $ (0.04) $ (0.27)
Shares used in computing:
Basic income (loss) per share 14,321,452 14,278,279
Diluted income (loss) per share 14,321,452 14,278,279
Adjusted net income (loss) per share:
Adjusted net income (loss) used in computing income per share $ 4 $ (3,651)
Adjusted net income (loss) per share $ 0.00 $ (0.26)
Shares used in computing adjusted net income (loss) per share 14,321,452 14,278,279
Reconciliation of net loss to adjusted net loss:
Net income (loss) $ (625) $ (3,888)
Restructuring and related expenses -- 3
Amortization of capitalized software development costs 394 --
Amortization of other intangible assets 235 221
Impairment and realized losses
on available for sale marketable securities -- 13
------------ ------------
Adjusted net income (loss) $ 4 $ (3,651)
============ ============
Note: Certain prior year amounts have been reclassified to conform to current
year presentation.
[a] Includes costs invoiced to customers of $193 and $376 for the three months
ended March 31, 2003 and 2002, respectively.
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FUNDTECH LTD. AND ITS SUBSIDIARIES
Consolidated Statement of Cash Flows
(In Thousands)
Three Months Ended
March 31,
---------
2003 2002
---- ----
CASH FLOWS FROM OPERATIONS:
Net income (loss) $ (625) $ (3,888)
Adjustments to reconcile net income to net cash used
in operating activities:
Depreciation and amortization 1,409 1,099
Impairment and realized losses on available for sale marketable securities -- 4
Capital loss on sales of property and equipment -- 10
Provision for doubtful accounts -- 124
Decrease (increase) in trade receivables and long term-trade receivables 1,747 (671)
Increase in other accounts receivable,
prepaid expenses and inventories (149) (147)
Increase (decrease) in trade payables 220 (1,518)
Increase in deferred revenues 6,842 8,399
Decrease in employee and payroll accruals (283) (572)
(Decrease) increase in other payables and accrued expenses (32) 566
Increase in accrued non-recurring expenses -- 3
Increase (decrease) in accrued severance pay, net 3 (7)
Decrease in accrued interest on marketable securities 9 --
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Net cash provided by operations 9,141 3,402
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CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in held to maturity marketable securities, net 4,886 --
Proceeds from sale of available for sale marketable securities -- 1,141
Purchase of property and equipment (869) (397)
Reduction (investment) in long-term lease deposits 100 (73)
Proceeds from sale of property and equipment -- 21
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Net cash provided by investing activities 4,117 692
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CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from the issuance of share capital and
exercise of stock options and warrants, net -- 2
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Net cash provided by financing activities -- 2
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Effect of exchange rate on cash and cash equivalents 121 (37)
-------- --------
Increase (decrease) in cash and cash equivalents 13,379 4,059
Cash and cash equivalents at the beginning of the period 26,571 39,923
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Cash and cash equivalents at the end of the period $ 39,950 $ 43,982
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