[logo] Media relations contact: Investor relations contact:
CheckFree Judy DeRango Wicks Tina Moore
(678) 375-1595 (678) 375-1278
jdwicks@checkfree.com tmoore@checkfree.com
- -------------------------------------------------------------------------------
FOR IMMEDIATE RELEASE
CHECKFREE CLOSES FISCAL 2003 WITH SOLID FOURTH QUARTER PERFORMANCE
ATLANTA (August 5, 2003) - CheckFree Corporation (NASDAQ: CKFR) today
announced fourth quarter revenue of $144.6 million and net income of $20.0
million, or $0.22 per share, compared to revenue of $130.6 million and net
income of $12.8 million, or $0.14 per share, in the fourth quarter of fiscal
2002, all on a pro forma basis. On a GAAP basis, CheckFree reported revenue of
$144.6 million compared to revenue of $127.9 million in the fourth quarter of
fiscal 2002. The net loss for the quarter of $17.0 million, or $0.19 per share,
compared to a net loss of $59.4 million, or $0.67 per share, for the fourth
quarter of fiscal 2002. The Company's free cash flow was $37.8 million for the
quarter, and $133.5 million for the year. Free cash flow is calculated by taking
GAAP net cash provided by operating activities and deducting property and
software purchases.
Revenue for the quarter ended June 30, 2003, increased 11 percent over
the comparative quarter of last year on a pro forma basis. Pro forma results for
the quarter exclude $45.0 million of acquisition-related amortization, a $10.2
million intangible asset impairment charge, and a $1.4 million true-up of a
previous reorganization charge, offset by $19.7 million of related tax benefits.
This compares to pro forma results for the fourth quarter of fiscal 2002 that
excluded a non-cash reduction of revenue of $2.7 million associated with
warrants issued to a third party, $89.3 million of acquisition-related
amortization and a $0.5 million update to a fiscal 2002 third quarter
reorganization charge, offset by $20.3 million of related tax benefits.
CheckFree adopted Statement of Financial Accounting Standards (SFAS)
No. 142 regarding accounting for goodwill as of July 1, 2002, and has
discontinued amortizing its goodwill associated with previous acquisitions. Had
the Company adopted SFAS 142 in the prior year and eliminated goodwill
amortization at that time, its comparative GAAP net loss would have been $17.7
million and net loss per share would have been $0.20 for the quarter ended June
30, 2002.
CheckFree Chairman and CEO Pete Kight said, "Overall, we are pleased
with our results this quarter, and with our execution throughout this fiscal
year. Each of our divisions executed on, or ahead of, plan for the quarter. We
experienced on-target biller and Consumer Service Provider signings coupled with
tremendous growth in e-bill distribution in our Electronic Commerce division,
stronger-than-expected sales in our Software business, and strong service
innovations through our Investment Services unit. For the year, we delivered
solid execution against our plan, and extended our leadership position in each
of the markets in which we compete.
CHECKFREE CLOSES FISCAL YEAR 2003 WITH SOLID FOURTH QUARTER PERFORMANCE
-- PAGE 2 OF 6
"Quality, cost and innovation - on which we've based our business model
- - will continue to drive our strategic and operational direction in the next
fiscal year," he continued. "We expect a more stable investment market to
benefit our Investment Services division later in the year and anticipate solid
performance in our Software division, where we are actively pursuing additional
growth opportunities. We also expect to see continued strong gains in electronic
payments and continued acceleration in electronic billing," Kight concluded.
CORE ELECTRONIC BILLING AND PAYMENT METRICS
o CheckFree processed about 120.2 million transactions in the fourth
quarter, an increase of seven percent from the 111.9 million
transactions processed in the third quarter of fiscal 2003, and a 37
percent increase over the 87.9 million transactions processed in the
fourth quarter of fiscal 2002. For the year, CheckFree processed more
than 434 million transactions.
o Transactions in the Full Service category were up nine percent
sequentially for the quarter, with active subscribers up about eight
percent sequentially to 4.2 million. In the fourth quarter, CheckFree
processed 87.5 million transactions and recorded revenue of $82.6
million in its Full Service category, compared to 80.3 million
transactions and revenue of $81.5 million in the prior quarter. The
Company saw an expected decline in revenue per transaction in this
category this quarter, primarily due to a large customer steadily
growing its base of electronic billing and payment customers and
achieving a new pricing tier.
o Transactions in the Payment Services category were up three percent
sequentially. For this category, CheckFree processed 32.7 million
transactions and recorded revenue of $12.3 million in the fourth
quarter, compared to 31.6 million transactions and revenue of $12.8
million for the prior quarter.
o CheckFree's electronic payment rate exceeded 75 percent during the
fourth quarter.
o As of June 30, 2003, consumers were able to both view and pay bills
through 949 Consumer Service Providers using CheckFree's services,
compared with 842 at the end of the previous quarter, and 584 at the
end of the fourth quarter of fiscal 2002.
o CheckFree distributed more than 11.5 million e-bills in the fourth
quarter, up 31 percent sequentially over the 8.8 million e-bills
distributed in the third quarter, and up more than 200 percent over the
3.8 million e-bills distributed in the fourth quarter of fiscal 2002.
This equates to a run rate of more than 46 million e-bills per year.
o Consumers can now view and pay a total of 279 different e-bills through
Consumer Service Providers using CheckFree's services, compared to 274
at the end of the previous quarter, and 262 in the same period of
fiscal 2002.
o More than 10 million consumers initiated a payment through
CheckFree-managed services during the quarter.
CHECKFREE CLOSES FISCAL YEAR 2003 WITH SOLID FOURTH QUARTER PERFORMANCE
-- PAGE 3 OF 6
FOURTH QUARTER DIVISION PERFORMANCE
CheckFree's ELECTRONIC COMMERCE division reported pro forma revenue of
$106.0 million for the fourth quarter, representing 12 percent growth over the
$94.6 million reported in the same quarter of fiscal 2002. Pro forma operating
income of $32.1 million for the quarter compares with pro forma operating income
of $22.6 million in the fourth quarter last year. Pro forma results for the
quarter ended June 30, 2003, exclude $43.8 million of acquisition-related
amortization and a $0.3 million true-up of a previous reorganization charge; and
for the quarter ended June 30, 2002, pro forma results exclude $84.5 million of
acquisition-related amortization and a $0.1 million update to the fiscal 2002
third quarter reorganization charge and include $2.7 million of revenue related
to warrants. On a GAAP basis, revenue was $106.0 million and operating loss was
$11.9 million for the recently completed fourth quarter, compared to revenue of
$91.8 million and an operating loss of $64.7 million for the same quarter in
fiscal 2002.
TRANSACTION HISTORY - FIVE-QUARTER OVERVIEW
Quarter Ended
6/30/02 9/30/02 12/31/02 3/31/03 6/30/03
-----------------------------------------------------
(in millions, except revenue/transaction)
FULL SERVICE
Revenue $ 74.1 $ 71.6 $ 75.1 $ 81.5 $ 82.6
Active Subscribers 3.1 3.2 3.5 3.9 4.2
Transactions 69.0 67.2 74.9 80.3 87.5
Revenue/Transaction* $ 1.07 $ 1.07 $ 1.00 $ 1.01 $ 0.94
PAYMENT SERVICES
Revenue $ 10.7 $ 14.7 $ 13.9 $ 12.8 $ 12.3
Transactions 18.9 29.5 30.1 31.6 32.7
Revenue/Transaction* $ 0.56 $ 0.50 $ 0.46 $ 0.41 $ 0.37
TOTAL TRANSACTIONS 87.9 96.7 105.0 111.9 120.2
OTHER REVENUE $ 9.8** $ 9.7*** $ 9.2 $ 10.3 $ 11.2
*NOTE: Revenue/Transaction is derived by dividing all services and
transaction revenue earned in the category by the number of
transactions tracked in the category.
**NOTE: Excludes a $2.7 million non-cash reduction to GAAP other
revenue of $7.1 million for warrants issued to a third party.
***NOTE: Excludes a $0.6 million non-cash increase to GAAP other
revenue of $10.3 million for warrants issued to a third party.
CheckFree's INVESTMENT SERVICES division reported pro forma revenue of
$20.7 million for the fourth quarter, a one percent increase over the $20.5
million reported for the same period of fiscal 2002. Pro forma operating income
was $4.8 million compared to pro forma operating income of $6.7 million in the
fourth quarter of fiscal 2002. Pro forma results for the quarter ended June 30,
2003, exclude $0.2 million of acquisition-related amortization; and pro forma
results for the quarter ended June 30, 2002, exclude $1.4 million of
acquisition-related amortization. GAAP revenue for the current fourth quarter
was $20.7 million and operating income was $4.6 million, compared to revenue of
$20.5 million and operating income of $5.3 million in the fourth quarter of last
year.
CHECKFREE CLOSES FISCAL YEAR 2003 WITH SOLID FOURTH QUARTER PERFORMANCE
-- PAGE 4 OF 6
The Company's SOFTWARE division reported revenue of $17.9 million for
the fourth quarter, a 15 percent increase from the $15.6 million reported for
the same period last year. The division reported pro forma operating income of
$5.9 million for the fourth quarter, compared to pro forma operating income of
$2.6 million in the fourth quarter of fiscal 2002. Pro forma results for the
quarter ended June 30, 2003, exclude a $10.2 million intangible asset impairment
charge and a $1.2 million true-up of a previous reorganization charge, both
related to the i-Solutions business, and $1.0 million of acquisition-related
amortization; and pro forma results for the quarter ended June 30, 2002, exclude
$3.4 million of acquisition-related amortization and a $0.4 million update to
the fiscal 2002 third quarter reorganization charge. GAAP revenue was $17.9
million, with an operating loss of $6.6 million for the fourth quarter of fiscal
2003, compared to revenue of $15.6 million and an operating loss of $1.2 million
in the fourth quarter of fiscal 2002.
Administrative costs for the quarter were $9.3 million, or roughly six
percent of quarterly revenue on a pro forma and GAAP basis.
FISCAL YEAR 2003 RESULTS
For the year, CheckFree reported revenue of $551.0 million representing
12 percent growth over the prior year, and net income of $72.2 million, or $0.81
per share, on a pro forma basis; revenue of $551.6 million and a net loss of
$52.2 million, or $0.59 per share on a GAAP basis. These results compare to
revenue of $493.2 million and a net income of $17.1 million, or $0.19 per share
for fiscal 2002, on a pro forma basis; and revenue of $490.5 million and a net
loss of $441.0 million, or $5.04 per share on a GAAP basis in the prior year.
Pro forma results for the year exclude $183.3 million of
acquisition-related amortization, a $10.2 million intangible asset impairment
charge, a $1.4 million true-up of a previous reorganization charge, a $3.2
million investment impairment charge, the cumulative effect of an accounting
change of $2.9 million related to the Company's July 1, 2002, adoption of SFAS
142 regarding accounting for goodwill, and a $0.6 million non-cash increase in
revenue associated with warrants, offset by $76.0 million of related income tax
benefits. This compares to pro forma results for fiscal 2002 that exclude $394.0
million of acquisition-related amortization, $155.1 million intangible asset
impairment charges, $16.4 million of reorganization charges and a $2.7 million
non-cash reduction in revenue associated with warrants, offset by $110.1 million
of related income tax benefits.
For the year ended June 30, 2003, the ELECTRONIC COMMERCE division
posted revenue of $404.7 million, a 14 percent gain over the $354.8 million in
revenue posted in fiscal 2002, and operating income of $115.5 million compared
with operating income of $39.0 million in fiscal 2002, on a pro forma basis. Pro
forma results for the year ended June 30, 2003 exclude $175.0 million of
acquisition-related amortization, a $0.3 million true-up of a previous
reorganization charge, and a $0.6 million non-cash increase in revenue related
to warrants; and for the year ended June 30, 2002, pro forma results exclude
$358.5 million of acquisition-related amortization, $11.0 million of
reorganization charges, a $47.7 million intangible asset impairment charge, and
include a $2.7 million non-cash reduction in revenue related to warrants.
Revenue was $405.4 million and operating loss was $59.2 million on a GAAP basis
for the year ended June 30, 2003; compared to revenue of $352.1 million and a
loss of $380.9 million for the year ended June 30, 2002.
CHECKFREE CLOSES FISCAL YEAR 2003 WITH SOLID FOURTH QUARTER PERFORMANCE
-- PAGE 5 OF 6
Revenue for the year in CheckFree's INVESTMENT SERVICES division was
$81.6 million, a two percent increase over the $79.6 million reported for fiscal
2002. Pro forma operating income for the year was $21.1 million, compared with
pro forma operating income of $24.4 million in fiscal 2002. Pro forma results
exclude $2.3 million of acquisition-related amortization for the year ended June
30, 2003, and $5.7 million of acquisition-related amortization and a $2.3
million reorganization charge for the year ended June 30, 2002. GAAP revenue was
$81.6 million and operating income was $18.8 million for the year ended June 30,
2003; compared to revenue of $79.6 million and operating income of $16.4 million
for the year ended June 30, 2002.
In the SOFTWARE division, revenue for the year was $64.7 million, a 10
percent increase from the $58.8 million in revenue reported for fiscal 2002. Pro
forma operating income for 2003 was $18.0 million, compared to pro forma
operating income of $5.8 million for fiscal 2002. Pro forma results for the year
ended June 30, 2003, exclude $6.0 million of acquisition-related amortization, a
$1.2 million true-up of a previous reorganization charge, and a $10.2 million
intangible asset impairment charge; and pro forma results for the year ended
June 30, 2002, exclude $29.9 million of acquisition-related amortization, a
$107.4 million intangible asset impairment charge, and a $2.8 million
reorganization charge. GAAP revenue was $64.7 million and operating income was
$0.6 million for the year ended June 30, 2003; compared to revenue of $58.8
million and operating loss of $134.3 million for the year ended June 30, 2002.
Administrative costs for the year were $33.8 million, or roughly six
percent of revenue on a pro forma and GAAP basis.
EXPECTATIONS FOR FISCAL YEAR 2004
"In fiscal 2004, CheckFree expects to post positive earnings per share,
on a pro forma basis, in the range of $0.93 to $0.97; and about breakeven
performance on a GAAP basis. This projection includes expense of more than $0.02
for the year related to CheckFree's Stock Option Exchange Program," said David
Mangum, CheckFree's chief financial officer. "We expect to continue to leverage
operating efficiencies that our business model affords across each of our
divisions, and anticipate free cash flow growth approaching 20 percent for the
year."
"For the first quarter of 2004, we project revenue in the range of $135
to $140 million, pro forma earnings per share in the range of $0.18 to $0.20,
and a GAAP loss per share in the range of $0.08 to $0.12, each of which includes
$1.1 million of expense related to the Exchange Program," he continued.
"Sequential quarterly transaction growth for the first quarter should
be in the range of two to four percent. We anticipate that the peak of the
transaction volume that will be moving off our system by two in-house banks will
take place in the first quarter. We also expect to experience the effects of
typical software licensing seasonality during the period. As our full-year
guidance reflects, in the remaining quarters of the year we expect to report
revenue and earnings results more consistent with our recent performance,"
Mangum concluded.
Separately, CheckFree also announced that its Board of Directors has
approved extending the repurchase program, under which the Corporation may
purchase shares of its common stock and/or convertible notes for up to a
combined total of $40 million, through August 31, 2004.
CHECKFREE CLOSES FISCAL YEAR 2003 WITH SOLID FOURTH QUARTER PERFORMANCE
-- PAGE 6 OF 6
ABOUT CHECKFREE (www.checkfreecorp.com)
CheckFree (NASDAQ: CKFR) is the leading provider of financial electronic
commerce services and products. Founded in 1981 and celebrating its 23rd year in
e-commerce, CheckFree is comprised of three divisions: Electronic Commerce,
Software, and Investment Services. CheckFree launched the first fully integrated
electronic billing and payment solution in 1997. In the quarter ended June 30,
2003, more than 10 million consumers initiated online payments through services
offered by CheckFree's ELECTRONIC COMMERCE division. Electronic billing and
payment is available through 949 financial services organizations, including
banks, brokerage firms, Internet portals and personal financial management (PFM)
software. At these sites, consumers have access to 279 electronic bills.
CheckFree INVESTMENT SERVICES provides a broad range of investment management
services to thousands of financial institutions nationwide. The division's
clients manage more than 1.2 million portfolios totaling more than $500 billion
in assets.
CheckFree's SOFTWARE division provides solutions through three operating units:
CheckFree ACH Solutions, CheckFree Financial and Compliance Solutions (CFACS),
and CheckFree i-Solutions. CheckFree ACH Solutions provides software and
services that are used to process more than two-thirds of the nation's eight
billion Automated Clearing House payments, while CFACS provides reconciliation
and compliance software and services to more than 500 organizations in the
banking, brokerage, utility, retail, insurance and credit card industries, among
others. CheckFree i-Solutions is the leading provider of e-billing and
e-statement software and services for both business-to-consumer and
business-to-business applications, with more billers as clients than all of its
competitors have combined.
Certain of the Company's statements in this press release are not purely
historical, and as such are "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. These include statements
regarding management's intentions, plans, beliefs, expectations or projections
of the future, and include statements in this document regarding forecasts and
expectations of revenue, pro forma earnings, cash flows, sequential transaction
growth for the first quarter of fiscal 2004 and fiscal 2004 as a whole, and
consumer adoption of electronic billing and payment services (paragraphs 5, 24,
25 and 26). Forward-looking statements involve risks and uncertainties,
including without limitation, the various risks inherent in the Company's
business, and other risks and uncertainties detailed from time to time in the
Company's periodic reports filed with the Securities and Exchange Commission,
including the Company's Form 10-K for the year ended June 30, 2002 (filed
September 26, 2002), Form 10-Q for the quarter ended September 30, 2002 (filed
November 14, 2002), Form 10-Q for the quarter ended December 31, 2002 (filed
February 12, 2003), and Form 10-Q for the quarter ended March 31, 2003 (filed
May 15, 2003). One or more of these factors have affected, and could in the
future affect, the Company's business and financial results in future periods,
and could cause actual results to differ materially from plans and projections.
There can be no assurance that the forward-looking statements made in this
document will prove to be accurate, and issuance of such forward-looking
statements should not be regarded as a representation by the Company, or any
other person, that the objectives and plans of the Company will be achieved. All
forward-looking statements made in this press release are based on information
presently available to management, and the Company assumes no obligation to
update any forward-looking statements.
# # #
CHECKFREE CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statements of Operations
(Unaudited)
(In thousands, except per share data)
Three Months Ended Twelve Months Ended
June 30, June 30,
------------------------------- -------------------------------
2003 2002 2003 2002
----------- ----------- ----------- -----------
Revenue:
Processing and servicing $ 124,018 $ 109,181 $ 476,416 $ 422,237
License fees 7,516 6,130 24,163 25,020
Maintenance fees 6,667 6,494 25,733 24,298
Other 6,404 6,073 25,334 18,922
----------- ----------- ----------- -----------
Total revenue 144,605 127,878 551,646 490,477
Expenses:
Cost of processing, servicing and support 59,984 59,289 237,978 262,105
Research and development 13,613 11,618 52,717 55,172
Sales and marketing 16,588 14,612 57,170 58,030
General and administrative 10,373 11,049 39,030 43,687
Depreciation and amortization 55,651 100,702 226,638 435,565
Impairment of intangible assets 10,228 -- 10,228 155,072
Reorganization charge 1,405 494 1,405 16,365
----------- ----------- ----------- -----------
Total expenses 167,842 197,764 625,166 1,025,996
----------- ----------- ----------- -----------
Loss from operations (23,237) (69,886) (73,520) (535,519)
Interest, net (1,593) (1,315) (5,648) (4,302)
Loss on investments -- -- (3,228) --
----------- ----------- ----------- -----------
Loss before income taxes and cumulative
effect of accounting change (24,830) (71,201) (82,396) (539,821)
Income tax benefit (7,859) (11,790) (33,106) (98,871)
----------- ----------- ----------- -----------
Loss before cumulative effect of accounting change (16,971) (59,411) (49,290) (440,950)
Cumulative effect of accounting change -- -- (2,894) --
----------- ----------- ----------- -----------
Net loss $ (16,971) $ (59,411) $ (52,184) $ (440,950)
=========== =========== =========== ===========
Basic and diluted loss per share:
Basic and diluted net loss per share before
cumulative effect of accounting change $ (0.19) $ (0.67) $ (0.56) $ (5.04)
Cumulative effect of accounting change -- -- (0.03) --
----------- ----------- ----------- -----------
Net loss per common share $ (0.19) $ (0.67) $ (0.59) $ (5.04)
=========== =========== =========== ===========
Equivalent number of shares 89,215 88,063 88,807 87,452
=========== =========== =========== ===========
CHECKFREE CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL PRO FORMA CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE DATA)
Three Months Ended Twelve Months Ended
June 30, June 30,
--------------------------- ---------------------------
2003 2002 2003 2002
--------- --------- --------- ---------
Revenue:
Processing and servicing $ 124,018 $ 111,929 $ 475,772 $ 424,985
License fees 7,516 6,130 24,163 25,020
Maintenance fees 6,667 6,494 25,733 24,298
Other 6,404 6,073 25,334 18,922
--------- --------- --------- ---------
Total revenue 144,605 130,626 551,002 493,225
Expenses:
Cost of processing, servicing and support 59,984 59,289 237,978 262,105
Research and development 13,613 11,618 52,717 55,172
Sales and marketing 16,588 14,612 57,170 58,030
General and administrative 10,373 11,049 39,030 43,687
Depreciation and amortization 10,613 11,414 43,296 41,556
--------- --------- --------- ---------
Total expenses 111,171 107,982 430,191 460,550
--------- --------- --------- ---------
Income from operations 33,434 22,644 120,811 32,675
Interest, net (1,593) (1,315) (5,648) (4,302)
--------- --------- --------- ---------
Income before income taxes 31,841 21,329 115,163 28,373
Income tax expense 11,880 8,539 42,934 11,237
--------- --------- --------- ---------
Net income $ 19,961 $ 12,790 $ 72,229 $ 17,136
========= ========= ========= =========
Basic income per share:
Net income per common share $ 0.22 $ 0.15 $ 0.81 $ 0.20
========= ========= ========= =========
Equivalent number of shares 89,215 88,063 88,807 87,452
========= ========= ========= =========
Diluted income per share:
Net income per common share $ 0.22 $ 0.14 $ 0.81 $ 0.19
========= ========= ========= =========
Equivalent number of shares 91,471 89,027 89,554 88,351
========= ========= ========= =========
Management evaluates the operations of the Company exclusive of pro forma items.
Pro forma items represent either non-cash charges which do not impact our free
cash flow, or other items, which are evaluated separately as they arise.
Therefore, we believe the pro forma results of operations provide useful
information to investors consistent with our internal performance measurements.
These supplemental pro forma statements of operations for the three and twelve
month periods ended June 30, 2003 and 2002 are for illustrative purposes only
and are not prepared in accordance with generally accepted accounting
principles.
- -------------------------------------------------------------------------------
Reconciliation of Financial Information to Pro Forma Results of Operations
(Unaudited)
(In thousands)
Three Months Ended Twelve Months Ended
June 30, June 30,
------------------------------- -------------------------------
2003 2002 2003 2002
--------- --------- --------- ---------
Total revenue per GAAP $ 144,605 $ 127,878 $ 551,646 $ 490,477
Warrants issued to third party -- 2,748 (644) 2,748
--------- --------- --------- ---------
Total pro forma revenue $ 144,605 $ 130,626 $ 551,002 $ 493,225
========= ========= ========= =========
Net loss per GAAP $ (16,971) $ (59,411) $ (52,184) $(440,950)
Warrants issued to third party -- 2,748 (644) 2,748
Amortization of intangible assets 45,038 89,288 183,342 394,009
Impairment of intangible assets 10,228 -- 10,228 155,072
Reorganization charges 1,405 494 1,405 16,365
Impairment of investments -- -- 3,228 --
Cumulative effect of accounting change -- -- 2,894 --
Pro forma tax benefit (19,739) (20,329) (76,040) (110,108)
--------- --------- --------- ---------
Pro forma net income $ 19,961 $ 12,790 $ 72,229 $ 17,136
========= ========= ========= =========
- -------------------------------------------------------------------------------
CHECKFREE CORPORATION AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
(Unaudited)
(In thousands)
June 30, June 30,
2003 2002
---------- ----------
Current assets:
Cash, cash equivalents and investments $ 282,032 $ 205,967
Accounts receivable, net 81,626 88,030
Deferred income taxes 41,202 11,816
Other current assets 12,243 8,355
---------- ----------
Total current assets 417,103 314,168
Property and equipment, net 94,853 95,625
Capitalized software and intangible assets, net 946,976 1,146,487
Investments 121,615 72,788
Other 6,723 8,409
---------- ----------
Total assets $1,587,270 $1,637,477
========== ==========
Current liabilities:
Accounts payable, accrued liabilities and other $ 73,739 $ 70,017
Deferred revenues 36,543 42,410
---------- ----------
Total current liabilites 110,282 112,427
Accrued rent and other 3,419 3,019
Long-term obligations, less current portion 4,192 3,877
Deferred income taxes 28,728 39,993
Convertible subordinated notes 172,500 172,500
Net stockholders' equity 1,268,149 1,305,661
---------- ----------
Total liabilities and stockholders' equity $1,587,270 $1,637,477
========== ==========