Exhibit 99.1
LIGHTBRIDGE REPORTS FIRST QUARTER 2004 FINANCIAL RESULTS
Company meets recently increased revenue and earnings guidance
Acquisition of Authorize.Net Expected to be Accretive in 2004
BURLINGTON, MA - April 28, 2004 -- Lightbridge, Inc. (Nasdaq: LTBG), a leading
provider of technology solutions that manage customer transactions, today
reported financial results for the first quarter 2004. Revenues increased 4.2%
in the first quarter 2004 to $29.6 million versus $28.4 million in the first
quarter 2003. Revenue performance was driven primarily by stronger Transaction
volume and increased activity in Software Licensing and Hardware, when compared
to the year-ago quarter. The Company reported a net loss of $723,000, or $0.03
per share, during the first quarter 2004, versus a net loss of $357,000, or
$0.01 per share, in the same period last year. First quarter 2004 results
included restructuring costs of $499,000, in-process research and development
costs related to Authorize.Net of $661,000 and a tax benefit of $292,000. First
quarter 2003 results included restructuring costs of $77,000.
Pamela D.A. Reeve, President and Chief Executive Officer of Lightbridge stated,
"Subscriber activity showed momentum in the first quarter across most wireless
carriers, which was beneficial to our core business. With technology spending on
the rise, we aim to be the clear provider of choice for customer transaction
management. This quarter is a solid start to a year in which we expect to see
positive results from our R&D investments, acquisition initiatives and cost
alignment activity all aimed at the growth and long-term profitability of the
Company."
COMPANY COMPLETES AUTHORIZE.NET ACQUISITION
On March 31, 2004, Lightbridge completed its purchase of Authorize.Net
Corporation for $82 million, exclusive of acquisition costs. Authorize.Net
provides secure, reliable, Internet Protocol (IP) based payment gateway
solutions that enable merchants to authorize, settle and manage electronic
transactions anytime, anywhere, via Websites, at retail locations, and on
wireless devices. Authorize.Net has a diverse customer base and operates 24
hours per day.
Lightbridge expects Authorize.Net to be accretive to 2004 earnings in the range
of $0.03 to $0.04 per diluted share. For the first quarter 2004, the assets of
Authorize.Net are included in the Company's financial statements as "Unallocated
Purchase Price" pending the completion of the purchase accounting.
LIGHTBRIDGE REPORTS FIRST QUARTER 2004 FINANCIAL RESULTS - PAGE 2
Ms. Reeve concluded, "We utilized our assets to purchase an established and
profitable leader in the transactions payment business. We are pleased this new
business will afford us generous opportunities to further leverage our expertise
in transaction processing and diversify the Company's revenue and grow its
profitability. We believe this acquisition provides immediate benefits to our
shareholders, clients and partners who are all committed to Lightbridge's
success over the long-term."
AUTHORIZE.NET - FIRST QUARTER 2004 RESULTS
Since the acquisition by Lightbridge occurred on March 31, 2004, Authorize.Net
operating results for the first quarter 2004 were reported as a segment in the
financial statements of its former parent company, InfoSpace, Inc. (Nasdaq:
INSP) and are not included in Lightbridge's financial statements for the same
period.
As reported by Infospace earlier today, Authorize.Net's financial results were
as follows:
- - Revenue for the first quarter 2004 was $8.4 million, a 32% increase from
the year-ago period and a sequential increase of 7% from the fourth
quarter 2003. Authorize.Net's revenue stems from resellers and over 95,000
merchants using its payment platform to run their eCommerce business
operations, including 4,000 new merchant accounts added during the first
quarter 2004. In the first quarter 2004, no reseller produced more than 9%
of revenue and the top 100 merchants contributed approximately 13% of
revenue.
- - Authorize.Net's segment income as defined by InfoSpace was $2.8 million
for the first quarter 2004, compared to $2.8 million in the fourth quarter
2003 and $1.3 million in the first quarter 2003.
Historically, InfoSpace has excluded certain expenses in the calculation of
Authorize.Net's segment income. These expenses include depreciation,
amortization and other corporate charges. Lightbridge plans to separately
identify Authorize.Net's revenue, cost of revenues, gross margin and operating
margin in subsequent financial statements.
In cooperation with InfoSpace, the Company is preparing audited financial
statements for the three years ended December 31, 2003 for the Authorize.Net
business and expects to file those statements with the Securities and Exchange
Commission prior to the end of the second quarter 2004.
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LIGHTBRIDGE REPORTS FIRST QUARTER 2004 FINANCIAL RESULTS - PAGE 3
COMPANY GUIDANCE - SECOND QUARTER 2004
Lightbridge estimates revenue for the second quarter 2004 to range between $36.5
million and $38.0 million, with Authorize.Net expected to contribute between
$8.5 million and $8.7 million.
Earnings per share for the second quarter 2004 are anticipated to range between
($0.02) and $0.02.
AUTHORIZE.NET - ADDITIONAL GUIDANCE
Gross margin for the second quarter 2004 is expected to range between 78% and
85%, with cost of revenues consisting primarily of salaries and IT expenses.
Authorize.Net's second quarter 2004 operating margin, including depreciation,
amortization, in-process R&D charges and integration expenses, is expected to
range between 14% and 16%.
Authorize.Net's 2004 operating expenses are expected to include one-time charges
of approximately $661,000 for in-process R&D and approximately $1.0 million for
integration and infrastructure upgrade expenses. Operating expenses consist of
research and development, sales and marketing and general and administrative
expenses. For the balance of 2004, Authorize.Net expects to incur a depreciation
expense of between $1.0 million to $1.1 million and an amortization expense of
between $1.9 million and $2.2 million.
For full year 2005, depreciation expense for Authorize.Net is expected to be
approximately $1.3 million (excluding any additions of new capital), and
amortization expense is expected to range between $2.5 million and $2.9 million.
SELECT HIGHLIGHTS FROM THE FIRST QUARTER 2004
Cash and Short-term Investments -- On March 31, 2004, the Company had $49.4
million in cash and short-term investments, equating to $1.83 per basic share of
outstanding common stock.
New Call Center Opened -- On April 15, 2004, Lightbridge opened a new call
center in Liverpool, Nova Scotia, Canada. This state-of-the-art facility, which
complements its current U.S.-based call centers, will enable the Company to more
cost-effectively balance transaction volumes, hours of operation and service
operations for its global client base.
Stock Repurchase Program -- During the quarter ended March 31, 2004, Lightbridge
repurchased approximately 115,000 shares of its common stock under the terms of
its Stock Repurchase Program.
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LIGHTBRIDGE REPORTS FIRST QUARTER 2004 FINANCIAL RESULTS - PAGE 4
Since the program's inception in September 2001, the Company has repurchased
more than 2 million shares of its common stock and retains authorization to
purchase up to an additional 2 million shares through September 2005. From time
to time, the Company intends to make purchases of additional shares of its
common stock under its Stock Repurchase Program depending on market conditions.
CONFERENCE CALL INFORMATION
Lightbridge will conduct a conference call today, Wednesday, April 28, 2004 at
5:30 pm (Eastern) to discuss the information contained in this news release.
Investors wishing to listen to a webcast of the conference call should link to
the "Investor Relations" section of www.lightbridge.com at least 15 minutes
prior to the broadcast and follow the instructions provided to assure the
necessary audio applications are downloaded and installed. The call will be
available online at the Company's website for one week. The call can also be
accessed live over the phone by dialing 1-888-802-8576 or for international
callers by dialing 1-973-935-8515. A replay of the call will be available one
hour after the call and can be accessed by dialing 1-877-519-4471 and entering
pass code number: 4610360. The replay will be available until May 5, 2004.
ABOUT LIGHTBRIDGE
Lightbridge is a leading provider of technology services and software that
manage customer transactions. The Lightbridge suite of solutions leverages both
intelligent automated systems and human expertise, delivered primarily through
the efficiencies and cost savings of an outsourced business model. Businesses
around the world use Lightbridge to manage their customer transactions so they
can make smarter decisions, deliver better services, provide secure payments and
optimize the Lifetime Value of their customers. For more information, visit
www.lightbridge.com or call 1-800-LIGHTBR.
ABOUT INFOSPACE
InfoSpace, Inc. (Nasdaq: INSP) is a diversified technology and services company
that develops Internet and wireless solutions for a wide range of customers.
InfoSpace Search & Directory provides Web search and online directory products
that help users find the information they need while creating opportunities for
merchants. InfoSpace Mobile develops infrastructure, tools and applications that
enable carriers and content providers to efficiently develop and deliver mobile
data services across multiple devices. More information can be found at
http://www.infospaceinc.com.
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LIGHTBRIDGE REPORTS FIRST QUARTER 2004 FINANCIAL RESULTS - PAGE 5
CONTACTS:
SUSAN GRIFFIN GLEN ZIMMERMAN BRAD COHEN/RAPHAEL GROSS
Investor Relations Media Relations IR Counsel to Lightbridge
Lightbridge, Inc. Lightbridge, Inc. ICR, Inc.
781/359-4854 781/359-4705 203/222-9013
sgriffin@lightbridge.com gzimmerman@lightbridge.com BCOHEN@ICR-ONLINE.COM
AUTHORIZE.NET, LIGHTBRIDGE and the Lightbridge logo are registered trademarks of
Lightbridge, Inc. or its subsidiaries. All other trademarks or registered
trademarks are the properties of their respective owners.
FORWARD-LOOKING STATEMENTS
Certain statements in this news release that are not historical facts,
including, without limitation, those relating to the business outlook and trends
in the future, the Company's plans and strategies for the future including,
without limitation, plans to expand into new and existing markets, increase
profitability and grow its business, and the financial guidance for the second
quarter of 2004 and for the Authorize.Net business are forward-looking
statements that involve risks and uncertainties. Such statements are based upon
the current beliefs and expectations of the management of the Company. Actual
results may vary materially from those contained in forward-looking statements
based on a number of factors including, without limitation, (i) dependence on a
limited number of clients, (ii) the Company's revenue concentration in the
wireless telecommunications business and the declining subscriber growth rate in
that business, (iii) continuing rapid change in the telecommunications industry,
payment processing industry, and other markets in which the Company does
business that may affect both the Company and its clients, (iv) current and
future economic conditions generally and particularly in the telecommunications
industry, (v) uncertainties about the Company's ability to execute on, and about
the impact on the Company's business and operations of, its objectives, plans or
strategies as a result of potential technological, market or competitive
factors, or the acquisition of Authorize.Net, (vi) the impact of restructuring
and other charges on the Company's business and operations, (vii) integration,
employee retention, recognition of cost and other benefits and revenue
synergies, and other risks associated with acquisitions including the
acquisition of Authorize.Net, (viii) the industry risks associated with
Authorize.Net's business and operations including, without limitation, illegal
or improper uses of Authorize.Net's payment system, changes or failures to
comply with credit card association rules, governmental regulation and the
application of existing laws to Authorize.Net's business and dependence on
relationships with third party payment processors, and (ix) the factors
disclosed in the Company's filings with the U.S. Securities and Exchange
Commission including, without limitation, its 2003 Annual Report on Form 10-K.
The Company undertakes no obligation to update any forward-looking statements.
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LIGHTBRIDGE REPORTS FIRST QUARTER 2004 FINANCIAL RESULTS - PAGE 6
LIGHTBRIDGE, INC. AND SUBSIDIARIES
UNAUDITED, CONDENSED, CONSOLIDATED
TABLE 1: FINANCIAL HIGHLIGHTS (QUARTERLY COMPARISON)
(In millions, except %)
Quarter Ended Quarter Ended % Quarter Ended %
Mar. 31, 2004 Dec. 31, 2003 Change Mar. 31, 2003 Change
------------- ------------- ------ ------------- ------
Revenues:
Transaction $ 20.6 $ 21.7 (5.1%) $ 19.8 4.0%
Software licensing 2.5 0.5 364.9% 1.6 56.3%
Consulting and services 5.6 7.8 (27.9%) 6.3 (11.1%)
Hardware 1.0 0.7 35.0% 0.7 37.7%
------- ------- ------- ------- -------
Total revenues $ 29.7 $ 30.7 (3.4%) $ 28.4 4.5%
------- ------- ------- ------- -------
Net income (loss) $ (0.7) $ 0.9 (181.8%) $ (0.4) 102.5%
======= ======= ======= ======= =======
Weighted average shares 27.0 27.4 (1.7%) 27.3 (1.3%)
======= ======= ======= ======= =======
EPS (loss) $(0.027) $ 0.03 (183.2%) $ (0.01) 105.2%
======= ======= ======= ======= =======
Total Cash and Short-Term Investments $ 49.4 $ 133.5 (63.0%) $ 135.6 (63.6%)
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LIGHTBRIDGE REPORTS FIRST QUARTER 2004 FINANCIAL RESULTS - PAGE 7
LIGHTBRIDGE, INC. AND SUBSIDIARIES
UNAUDITED, CONDENSED, CONSOLIDATED
TABLE 2: STATEMENT OF OPERATIONS (QUARTER ENDED)
(In thousands, except per share data)
Quarter Ended % Total Quarter Ended % Total $ %
Mar. 31, 2004 Revenue Mar. 31, 2003 Revenue Difference Difference
------------- ------- ------------- ------- ---------- ----------
Revenues:
Transaction $ 20,566 69.4% $ 19,783 69.6% $ 783 4.0%
Software licensing 2,521 8.5% 1,606 5.7% 915 57.0%
Consulting and services 5,574 18.8% 6,291 22.1% (717) (11.4%)
Hardware 965 3.3% 743 2.6% 222 29.9%
-------- ---------- -------- ---------- -------- ----------
Total revenues 29,626 100.0% 28,423 100.0% 1,203 4.2%
-------- ---------- -------- ---------- -------- ----------
Cost of revenues:
Transaction 12,302 41.5% 11,219 39.5% 1,083 9.7%
Software licensing 621 2.1% 144 0.5% 477 331.1%
Consulting and services 2,245 7.6% 2,901 10.2% (656) (22.6%)
Hardware 898 3.0% 568 2.0% 330 58.2%
-------- ---------- -------- ---------- -------- ----------
Total cost of revenues 16,066 54.2% 14,832 52.2% 1,234 8.3%
-------- ---------- -------- ---------- -------- ----------
Gross margin:
Transaction 8,264 27.9% 8,564 30.0% (300) (3.5%)
Software licensing 1,900 6.4% 1,462 5.1% 438 30.0%
Consulting and services 3,329 11.2% 3,390 11.9% (61) (1.8%)
Hardware 66 0.3% 175 0.7% (109) (62.0%)
-------- ---------- -------- ---------- -------- ----------
Total gross margin 13,559 45.8% 13,591 47.7% (32) (0.2%)
-------- ---------- -------- ---------- -------- ----------
Operating expenses:
Development costs 6,973 23.5% 7,077 24.9% (104) (1.5%)
Sales and marketing 3,752 12.7% 3,987 14.0% (235) (5.9%)
General and administrative 3,519 11.9% 3,366 11.8% 153 4.6%
Purchased in-process R&D 661 2.2% -- 0.0% 661 --
Restructuring costs 499 1.7% 77 0.3% 422 547.9%
-------- ---------- -------- ---------- -------- ----------
Total operating expenses 15,404 52.0% 14,507 51.0% 897 6.2%
-------- ---------- -------- ---------- -------- ----------
Income (loss) from operations (1,845) (6.2%) (916) (3.2%) (929) 101.4%
Other income, net 352 1.2% 470 1.7% (118) (25.0%)
-------- ---------- -------- ---------- -------- ----------
Income (loss) before taxes (1,492) (5.0%) (446) (1.6%) (1,046) 234.6%
Provision (benefit) for income
taxes (770) (2.6%) (89) (0.3%) (681) 765.1%
-------- ---------- -------- ---------- -------- ----------
Net income (loss) $ (723) (2.4%) $ (357) (1.3%) $ (366) 102.4%
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Weighted average shares 26,950 27,328
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Diluted loss per share $ (0.027) $ (0.01)
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LIGHTBRIDGE REPORTS FIRST QUARTER 2004 FINANCIAL RESULTS - PAGE 8
LIGHTBRIDGE, INC. AND SUBSIDIARIES
UNAUDITED, CONDENSED, CONSOLIDATED
TABLE 3: BALANCE SHEETS
(In thousands)
Assets March 31, 2004 December 31, 2003
-------------- -----------------
Current assets:
Cash and cash equivalents $ 42,839 $ 69,685
Short-term investments 6,530 63,803
-------- --------
Total cash and short term investments 49,369 133,488
Accounts receivable, net 21,115 20,071
Deferred tax assets 3,267 3,267
Other current assets 3,075 4,158
-------- --------
Total current assets 76,826 160,984
Property and equipment, net 8,726 9,408
Deferred tax assets 4,553 4,553
Other assets, net 442 362
Goodwill 1,664 1,664
Intangible assets, net 798 865
Unallocated purchase price 83,000 --
-------- --------
Total assets $176,009 $177,836
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Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued liabilities $ 13,635 $ 15,205
Deferred revenues 6,540 5,461
Reserve for restructuring 2,495 2,634
-------- --------
Total current liabilities 22,670 23,300
Long-term liabilities 25 33
-------- --------
Total liabilities 22,695 23,333
-------- --------
Stockholders' equity:
Total stockholders' equity 153,314 154,503
-------- --------
Total liabilities and stockholders' equity $176,009 $177,836
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