Exhibit 99.2
NEWS RELEASE
Fundtech Contact:
Yoram Bibring
Fundtech Ltd.
Tel: 1-201-946-1100
yoramb@fundtech.com
- -------------------
For Immediate Release
---------------------
FUNDTECH ON PACE TO ACHIEVE FOURTH QUARTER FINANCIAL GUIDANCE
Company's 2005 Financial Guidance Calls For 18%-21% Revenue
Growth and Higher Profits
JERSEY CITY, N.J., -- January 11, 2005, -- Fundtech Ltd.
(NASDAQ: FNDT), a leading provider of financial technology
software and services, today announced in advance of its
presentation this afternoon at the Seventh Annual Needham &
Company Growth Conference that it expects fourth-quarter
2004 revenues to exceed the guidance provided in October
2004 and expects its fourth quarter earnings per share to be
in line with the guidance. In addition, driven by a strong
order backlog from its payment processing banking technology
business the company said it is well positioned to maintain
its revenue and profitability growth in the year ahead. For
the fourth-quarter ended December 31, 2004, Fundtech
expects:
o Revenues to be approximately $17 million
o GAAP earnings per diluted share, including all
amortization expenses, of $0.05 to $0.07
o Adjusted earnings per diluted share, excluding all
amortization expenses, of $0.10 to $0.12
Fundtech's 2005 guidance is current as of today only and
Fundtech undertakes no obligation to update its estimates:
o Total revenues in the range of $68 million to $70
million, or approximately 18% to 21% year-over-year
growth
o GAAP earnings per diluted share, including all
amortization expenses, of between $0.20 and $0.24
o Adjusted earnings per diluted share, excluding all
amortization expenses, of between $0.38 and $0.42
"The HSBC win which we announced this morning is an
important strategic event for Fundtech and further validates
our position as the leading technology provider for global
banks that seek to consolidate their payment processing
value chain into one highly efficient platform" said Reuven
Ben Menachem, Fundtech's chief executive officer. "I am
confident that we will achieve the 18%-21% revenue growth in
2005. In addition to the impact of the HSBC transaction, we
are continuing to expand our relationships with existing
customers, including our largest customer Citibank, we are
starting to generate meaningful revenues from our securities
industry initiative and we expect our recently acquired
subsidiary, CashTech of Pune India, to make a positive
contribution in 2005.
Fundtech will report its fourth-quarter and full-year 2004
financial results after the close of market on February 15,
2005.
Fundtech quarterly guidance for 2005 which excludes expenses
relating to employee stock options is as follows:
2005 Q1 05 Q2 05 Q3 05 Q4 05
Revenues (In $ millions)
High 70.0 16.0 17.0 18.0 19.0
Low 68.0 15.5 16.5 17.5 18.5
Net Income (In $ millions)
High 3.7 0.4 0.7 1.1 1.5
Low 3.1 0.3 0.5 1.0 1.3
Amortization Expenses (In $ millions)
2.8 0.7 0.7 0.7 0.7
Net Income Before Amortization Expenses - Adjusted Net Income (In $ millions)
High 6.5 1.1 1.4 1.8 2.2
Low 5.9 1.0 1.2 1.7 2.0
GAAP EPS (In $)
High 0.24 0.02 0.05 0.07 0.10
Low 0.20 0.01 0.04 0.06 0.09
Adjusted EPS (In $)
High 0.42 0.07 0.09 0.12 0.14
Low 0.38 0.06 0.08 0.11 0.13
"We expect our revenues and profitability to improve quarter
over quarter in 2005" said Yoram Bibring, Fundtech's chief
financial officer. "Much like 2004 our profitability in the
first half of 2005 is impacted by the addition of new
personnel that must be trained before they can become
effective revenue generating members of the Fundtech team.
These new people are
needed to support the increased backlog for our products, as
evidenced by the HSBC transaction.
Chief Executive Officer Reuven Ben Menachem and Chief
Financial Officer Yoram Bibring will discuss the company's
2005 outlook, business strategy, and market opportunities
during a presentation today at the Seventh Annual Needham &
Company Growth Conference from the New York Palace Hotel
Their presentation can be heard live beginning at 4:30 p.m.
ET via the Fundtech website, www.fundtech.com From the
"Investor Relations" page, click on "Event Calendar" and
follow the link.
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 products are designed to
increase efficiency while enabling banks to better serve
their corporate clients. Fundtech operates the world's
largest SWIFTNet service bureau through its Swiss subsidiary
bbp; and the company is the leading developer of CLS systems
having been selected by 20 of the CLS Settlement Members
Banks. Fundtech was established in 1993 and is a public
company listed on the NASDAQ and the Tel Aviv Stock
exchange.
Forward Looking Statements:
Statements in this news release about Fundtech's financial
expectations in 2004 and 2005 are forward-looking statements
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 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 Contact:
Yoram Bibring
201-946-1100
yoramb@fundtech.com
# # #