Exhibit 99.1
FUNDTECH
Expect more.
NEWS
RELEASE
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 FINANCIAL RESULTS FOR THE
FIRST QUARTER OF 2004
- Quarterly Revenues Grow 17% Year-over-Year to $12.9 Million
- GAAP EPS of 2 cents
- Adjusted EPS of 6 cents
JERSEY CITY, N.J., -- May 3, 2004, -- Fundtech Ltd. (NASDAQ: FNDT), a leading
provider of global electronic payment, settlement and cash management solutions,
today announced its financial results for the first quarter of 2004.
Revenues for the first quarter of 2004 were $12.9 million, unchanged from the
fourth quarter of 2003 and 17% higher than $11.0 million in the first quarter of
2003.
On a GAAP (Generally Accepted Accounting Principles) basis, net income for the
first quarter of 2004 was $260,000, or $0.02 per diluted share, compared with
net income of $675,000, or $0.04 per diluted share, for the fourth quarter of
2003 and a net loss of $(625,000), or $(0.04) per share, in the first quarter of
2003.
Excluding amortization of intangibles and amortization of capitalized software
costs, Fundtech's adjusted net profit for the first quarter of 2004 was
$900,000, or $0.06 per diluted share, compared with $1,300,000, or $0.09 per
diluted share, in the fourth quarter of 2003 and $4,000, or $0.00 per share, in
the first quarter of 2003. (See Schedule A Attached to this Press Release --
Reconciliation to GAAP).
"During the first quarter we experienced success selling our Global PAYplus
solution in the U.S., and met our revenue and profitability guidance targets,"
said Fundtech CEO Reuven Ben Menachem. "We also enjoyed positive momentum in our
European SwifNet business, continued to increase our recurring revenue base and
raised our cash and marketable securities position by $7.8 million to $54.2
million."
Additional first quarter highlights:
o Closed two CLS system sales, to banks in South Africa and Asia.
o Closed 30 new deals and added 5 new customers.
o Closed four new system sales in the U.S.; two Global PAYplus, one PAYplus
USA and one CASHplus.
o Received an order from Citibank to implement Global PAYplus in Japan.
o Topped 100 ASP customers worldwide.
o Upgraded 11 FEDplus customers to PAYplus USA.
Guidance
The financial guidance provided is current as of today only and the Company
undertakes no obligation to update its estimates.
For the second quarter of 2004, Fundtech expects revenues to be between $13.0
million to $13.5 million. In accordance with last quarter's guidance, the
Company expects total operating expenses to grow by approximately $500,000 in
the second quarter and projects that GAAP earnings per diluted share, including
all amortization expenses, will be in the range of $0.01 to $0.03. Excluding all
amortization expenses, Fundtech expects adjusted earnings per diluted share to
be in the range of $0.05 to $0.07. Amortization expenses for the second quarter
are estimated to be approximately $629,000, or $0.04 per share.
In light of the company's first quarter results and second quarter expectations,
Fundtech is increasing the full-year 2004 financial guidance range.
Fundtech now expects 2004 revenues to be between $53.5 million and $54.5
million, compared with prior guidance of $52.8 million to $54.3 million. GAAP
earnings per diluted share is expected to be between $0.10 and $0.16 compared
with prior guidance of $0.06 to $0.15. Earnings per diluted share, before all
amortization expenses, is expected to be in the range of $0.26 to $0.32,
compared with prior guidance of $0.22 to $0.31.
Company to Host Conference Call
Fundtech management will host a conference call at 8:30 a.m. (ET) today to
discuss its first-quarter 2004 results and to answer questions from the
investment community.
To participate, please call 866-500-4964 or 011-972-3-925-5910 and ask for the
Fundtech Call. From Israel, please dial (03) 925-5910.
A replay of the conference call will be available for playback from noon (ET)
today until 12:00 a.m. (ET) Monday, May 10. The replay may be accessed by
dialing 877-332-1104 or 972 (3) 9255934.
This call will also be webcast live on: http://www.fundtech.com.
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 hundreds of
financial institutions around the globe.
Forward Looking Statements:
Statements included in this news 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," "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 it's Annual Report on Form 20-F for the
year ending December 31, 2002, 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.
# # #
FUNDTECH LTD. AND ITS SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In Thousands)
March 31, December 31,
2004 2003
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ASSETS
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Current assets:
Cash & cash equivalents $ 35,170 $ 28,900
Marketable securities - short term 4,909 9,028
Trade receivables, net 13,852 13,009
Other accounts receivable, prepaid expenses and inventories 2,688 1,936
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Total current assets 56,619 52,873
Marketable securities - long term 14,077 8,436
Long term trade receivables, net 614 1,031
Severance pay fund 520 520
Long term deposits 1,359 860
Property and equipment, net 6,506 6,375
Goodwill, net 10,523 10,523
Other assets, net 8,313 8,942
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Total assets $ 98,531 $ 89,560
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
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Current liabilities:
Trade payables $ 1,988 $ 932
Deferred revenues 12,762 5,112
Accrued restructuring expenses 556 581
Employee and payroll accruals 1,388 2,015
Other accounts payable and accrued expenses 3,812 3,050
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Total current liabilities 20,506 11,690
Accrued severance pay 594 586
Accrued restructuring and other expenses 636 750
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Total liabilities 21,736 13,026
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Shareholders' equity:
Share capital 43 43
Additional paid-in capital 140,783 140,730
Accumulated other comprehensive income (loss) (232) (180)
Accumulated deficit (63,711) (63,971)
Treasury stock, at cost (88) (88)
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Total shareholders' equity 76,795 76,534
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Total liabilities and shareholders' equity $ 98,531 $ 89,560
========= =========
Note: Certain prior year amounts have been reclassified to conform to current
year presentation.
FUNDTECH LTD. AND ITS SUBSIDIARIES
Consolidated Statements of Operations
(In Thousands, Except Share and Per Share Data)
Three Months Ended
March 31,
---------
2004 2003
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Revenues:
Software license $ 3,453 $ 3,109
Software hosting 1,817 1,375
Maintenance 4,105 3,476
Services [a] 3,500 2,835
Hardware sales 27 244
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Total Revenues 12,902 11,039
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Operating expenses:
Software licenses costs 150 110
Amortization of capitalized software development costs 394 394
Amortization of other intangible assets 235 235
Maintenance, hosting and services costs [a] 4,847 4,340
Hardware costs 19 204
Software development 2,540 2,471
Selling and marketing, net 2,743 2,360
General and administrative 1,780 1,669
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Total operating expenses 12,708 11,783
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Operating income (loss) 194 (744)
Financial income, net 179 179
Income taxes (113) (60)
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Net income (loss) $ 260 $ (625)
============ ============
Net income (loss) per share:
Net income (loss) used in computing income per share $ 260 $ (625)
Basic income (loss) per share $ 0.02 $ (0.04)
Diluted income (loss) per share $ 0.02 $ (0.04)
Shares used in computing:
Basic income (loss) per share 14,532,549 14,321,452
Diluted income (loss) per share 15,332,028 14,321,452
Adjusted net income (loss) per share:
Adjusted net income (loss) used in computing income per share $ 889 $ 4
Adjusted net income (loss) per share $ 0.06 $ 0.00
Shares used in computing adjusted net income (loss) per share 15,332,028 14,321,452
Reconciliation of net loss to adjusted net income:
Net income (loss) $ 260 $ (625)
Amortization 629 629
Restructuring and related expenses -- --
Loss recognized on receivable settlement -- --
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Adjusted net income $ 889 $ 4
============ ============
Note: Certain prior year amounts have been reclassified to conform to current
year presentation.
[a] Includes costs invoiced to customers of $351 and $193 for the three months
ended March 31, 2004 and 2003, respectively.
FUNDTECH LTD. AND ITS SUBSIDIARIES
Consolidated Statement of Cash Flows
(In Thousands)
Three Months Ended
March 31,
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2004 2003
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CASH FLOWS FROM OPERATIONS:
Net income (loss) $ 260 $ (625)
Adjustments to reconcile net income to net cash used
in operating activities:
Depreciation and amortization 1,315 1,409
Decrease (increase) in trade receivables and long
term-trade receivables (453) 1,747
(Increase) decrease in other accounts receivable, prepaid
expenses and inventories (764) (149)
(Decrease) increase in trade payables 1,059 220
(Decrease) increase in deferred revenues 7,718 6,842
Increase (decrease) in employee and payroll accruals (614) (283)
(Decrease) increase in other payables and accrued expenses 770 795
(Decrease) increase in accrued non-recurring expenses (139) (827)
Increase (decrease) in accrued severance pay, net 8 3
Decrease (increase) in accrued interest on marketable securities (15) 9
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Net cash provided by (used in) operations 9,145 9,141
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CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from held to maturity marketable securities 4,069 4,886
(Investment in) long term held-to-maturity marketable securities (5,576) --
Purchase of property and equipment (856) (869)
Reduction (increase) in long-term lease deposits (499) 100
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Net cash (used in) investing activities (2,862) 4,117
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CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from the issuance of share capital and exercise
of stock options and warrants, net 53 --
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Net cash provided by financing activities 53 --
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Effect of exchange rate on cash and cash equivalents (66) 121
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Increase in cash and cash equivalents 6,270 13,379
Cash and cash equivalents at the beginning of the period 28,900 26,571
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Cash and cash equivalents at the end of the period $ 35,170 $ 39,950
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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,
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2004 2003
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Reconciliation of net income (loss) to adjusted net income:
Net income (loss) $ 260 [a] $ (625) [a]
Restructuring and related expenses -- --
Amortization of capitalized software development costs 394 394
Amortization of other intangible assets 235 235
Loss recognized on receivable settlement -- --
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Adjusted net income $ 889 $ 4
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Adjusted net income per share $ 0.06 $ --
=========== ===========
Shares used in computing adjusted net income per share 15,332,028 14,321,452
[a] Net income per share (diluted) was approximately $0.02 for the three
months ended March 31, 2004 and net (loss) per share was approximately
($0.04) the three months ended March 31, 2003.