[FUNDTECH LOGO]
CONTACT: Fundtech Ltd.
Yoram Bibring, 201/946-1100
yoramb@fundtech.com
or
CMG International
Claudia Gatlin, 212/830-9080
cmginternational@msn.com
FUNDTECH REPORTS FOURTH QUARTER AND FULL YEAR 2001 RESULTS
JERSEY CITY, N.J. -- February 11, 2002--Fundtech Ltd. (Nasdaq: FNDT), a leading
provider of global payments and cash management solutions, today announced its
financial results for the fourth quarter and full year ended December 31, 2001.
Revenue for the fourth quarter was $9.3 million, 12% lower than the third
quarter, and down 23% from the fourth quarter of 2000.
Excluding the effect of amortization of intangibles, non-recurring expenses and
other charges, the pro-forma fourth quarter net loss was $4.3 million, or $0.30
per share, compared with pro-forma net income of $0.5 million, or $0.03 per
share in the fourth quarter of 2000. Other charges for 2001 included provision
for doubtful accounts of $2.6 million and, impairment and realized losses of
marketable securities of $1.8 million.
On a GAAP basis, net loss for the fourth quarter was $9.6 million, or $0.67 per
share, compared with a loss of $130,000, or $0.01 per share in the same period
in 2000.
"We are continuing to feel the impact of delayed purchasing decisions by our
customers and aggressive pricing by our competitors," said Reuven Ben Menachem,
Chairman and CEO of Fundtech. "Despite these near term challenges, we are
continuing to develop and implement our next generation products, strengthening
our leadership position in the global payments market."
Fourth quarter highlights:
Expanded our business with our existing customers, including additional
functionality and new licenses to accommodate additional seats and transaction
volume;
Closed 24 new deals and added 5 new bank customers: 3 in the U.S. and 2
internationally, and
Signed 2 additional PAYplus for CLS contracts, bringing our total signed PAYplus
for CLS contracts to 17.
Revenue for the year 2001 was $44.2 million, 7% lower than 2000 revenues which
amounted to $47.3 million.
Excluding the effect of amortization of intangibles, non-recurring expenses and
other charges, the pro forma 2001 net loss was $11.2 million, or $0.79 per
share, compared with pro forma net income of $5.4 million, or $0.36 per share in
2000. Other charges included provision for doubtful accounts of $6.0 million for
2001 versus $0.5 million for 2000 and, impairment and realized losses of
marketable securities of $7.8 million for 2001.
On a GAAP basis, net loss for 2001 was $31.6 million, or $2.22 per share,
compared with net income of $2.4 million or $0.16 per share in 2000.
About Fundtech
Fundtech (www.fundtech.com) is a leading provider of global payments and cash
management solutions by enabling businesses through their banks to
electronically manage cash, process payments and transfer funds. The Company's
client-server and Internet software products and services 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 700 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," "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. PAYplus CLS is a trademark of the
Fundtech Corporation. All other trademarks and service marks are properties of
their respective owners.
FUNDTECH LTD. AND ITS SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In Thousands)
December 31, December 31,
2001 2000
----------- ------------
ASSETS
Current assets:
Cash & cash equivalents $ 39,923 $ 18,116
Short-term bank deposit -- 3,132
Marketable securities 5,462 42,067
Trade receivables, net 18,217 24,375
Other current assets 1,406 2,719
--------- ---------
Total current assets 65,008 90,409
Long term trade receivables 2,679 3,673
Long term lease deposits 607 476
Property and equipment, net 9,276 11,038
Other assets, net 24,073 20,933
--------- ---------
Total assets $ 101,643 $ 126,529
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Trade payables $ 2,254 $ 3,090
Accrued non-recurring expenses 634 --
Deferred revenues and accrued expenses 6,914 3,479
--------- ---------
Total current liabilities 9,802 6,569
Other liabilities 621 246
--------- ---------
Total liabilities 10,423 6,815
--------- ---------
Shareholders' equity:
Share capital 43 42
Additional paid-in capital 139,708 139,420
Accumulated other comprehensive loss (1,140) (3,951)
Deferred stock compensation -- (32)
Accumulated deficit (47,391) (15,765)
--------- ---------
Total shareholders' equity 91,220 119,714
--------- ---------
Total liabilities and shareholders' equity $ 101,643 $ 126,529
========= =========
Page 2 of 3
FUNDTECH LTD. AND ITS SUBSIDIARIES
Condensed Consolidated Statements of Operations
(In Thousands, Except Share and Per Share Data)
Three Months Ended Year Ended
December 31, December 31,
2001 2000 2001 2000
---- ---- ---- ----
Revenues:
Software license fees $ 2,424 $ 7,375 $ 17,067 $ 28,492
Maintenance and services fees 6,351 4,431 26,248 17,351
Hardware sales 553 291 842 1,437
------------ ------------ ------------ ------------
Total Revenues 9,328 12,097 44,157 47,280
Cost of revenues:
Software licenses costs 72 107 896 252
Maintenance and services costs 3,916 3,588 18,316 12,292
Hardware costs 455 218 686 1,131
------------ ------------ ------------ ------------
Total cost of revenues 4,443 3,913 19,898 13,675
------------ ------------ ------------ ------------
Gross profit 4,885 8,184 24,259 33,605
------------ ------------ ------------ ------------
Operating expenses:
Software development 4,759 4,585 19,185 17,747
Selling and marketing, net 2,241 2,395 10,325 9,637
General and administrative 2,373 1,873 9,262 6,389
Amortization of acquisition-related
goodwill and other intangible assets 640 631 2,525 2,462
Provision for doubtful accounts 2,556 -- 5,966 535
Non-recurring expenses 319 -- 4,073 --
------------ ------------ ------------ ------------
Total operating expenses 12,888 9,484 51,336 36,770
------------ ------------ ------------ ------------
Operating loss (8,003) (1,300) (27,077) (3,165)
Impairment and realized losses on marketable securities (1,795) -- (7,826) --
Financial income, net 204 1,170 3,343 5,542
------------ ------------ ------------ ------------
Net income (loss) $ (9,594) $ (130) $ (31,560) $ 2,377
============ ============ ============ ============
Net income (loss) per share:
Net income (loss) used in computing
income per share $ (9,594) $ (130) $ (31,560) $ 2,377
Basic income (loss) per share $ (0.67) $ (0.01) $ (2.22) $ 0.17
Diluted income (loss) per share $ (0.67) $ (0.01) $ (2.22) $ 0.16
Shares used in computing :
Basic income (loss) per share 14,263,739 14,096,298 14,218,388 14,096,298
Diluted income (loss) per share 14,263,739 14,553,974 14,218,388 14,776,615
Page 3 of 3
FUNDTECH LTD. AND ITS SUBSIDIARIES
Pro Forma Consolidated Statements of Operations [A]
(In Thousands, Except Share and Per Share Data)
Three Months Ended Year Ended
December 31, December 31,
2001 2000 2001 2000
------------ ------------ ------------ ------------
Revenues:
Software license fees $ 2,424 $ 7,375 $ 17,067 $ 28,492
Maintenance and services fees 6,351 4,431 26,248 17,351
Hardware sales 553 291 842 1,437
------------ ------------ ------------ ------------
Total Revenues 9,328 12,097 44,157 47,280
------------ ------------ ------------ ------------
Cost of revenues:
Software licenses costs 72 107 896 252
Maintenance and services costs 3,916 3,588 18,316 12,292
Hardware costs 455 218 686 1,131
------------ ------------ ------------ ------------
Total cost of revenues 4,443 3,913 19,898 13,675
------------ ------------ ------------ ------------
Gross profit 4,885 8,184 24,259 33,605
------------ ------------ ------------ ------------
Operating expenses:
Software development 4,759 4,585 19,185 17,747
Selling and marketing, net 2,241 2,395 10,325 9,637
General and administrative 2,373 1,873 9,262 6,389
------------ ------------ ------------ ------------
Total operating expenses 9,373 8,853 38,772 33,773
------------ ------------ ------------ ------------
Operating loss (4,488) (669) (14,513) (168)
------------ ------------ ------------ ------------
Financial income, net 204 1,170 3,343 5,542
------------ ------------ ------------ ------------
Net income (loss) $ (4,284) $ 501 $ (11,170) $ 5,374
============ ============ ============ ============
Pro Forma net income (loss) per share:
Net income (loss) used in computing
income per share $ (4,284) $ 501 $ (11,170) $ 5,374
Basic income (loss) per share $ (0.30) $ 0.04 $ (0.79) $ 0.38
Diluted income (loss) per share $ (0.30) $ 0.03 $ (0.79) $ 0.36
Shares used in computing :
Basic income (loss) per share 14,263,739 14,096,298 14,218,388 14,096,298
Diluted income (loss) per share 14,263,739 14,553,974 14,218,388 14,776,615
Note: Certain prior period amounts have been reclassified to conform to current
year presentation.
[A] The above presentation of Pro Forma net income per share has been
adjusted to exclude the effects of "Amortization of acquisition-related
goodwill and other intangible assets" and "Provision for doubtful
accounts" in 2000 and 2001 and "Non-recurring expenses"; and
"Impairment and realized losses of marketable securities" in 2001.
These pro forma financial statements are not presented under GAAP.