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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
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CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): May 14, 2003
INTELIDATA TECHNOLOGIES CORPORATION
(Exact Name of Registrant as Specified in its Charter)
Delaware 000-21685 54-1820617
(State of Incorporation) (Commission File Number) (IRS Employer
Identification No.)
11600 Sunrise Valley Drive
Suite 100
Reston, Virginia 20191
(Address of principal executive offices) (Zip Code)
(703) 259-3000
(Registrant's telephone number, including area code)
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ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
99.1 Press Release dated May 14, 2003.
ITEM 9. REGULATION FD DISCLOSURE (AND ITEM 12. RESULTS OF OPERATIONS AND
FINANCIAL CONDITION)
The following information contained in this Item 9 and the press release
attached hereto are being furnished by InteliData Technologies Corporation
("InteliData") pursuant to "Item 12. Results of Operations and Financial
Condition" in accordance with the interim guidance provided under the Securities
and Exchange Commission's Release Nos. 33-8216, 34-47583, insofar as they
disclose historical information regarding InteliData's results of operations or
financial condition for the quarter ended March 31, 2003.
Attached and incorporated herein by reference as Exhibit 99.1 is a copy of
the press release of InteliData, dated May 14, 2003, furnished hereby reporting
InteliData's results of operations and financial condition for the quarter ended
March 31, 2003.
In accordance with General Instruction B.6 of Form 8-K, the information in
this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed
"filed" for the purposes of Section 18 of the Securities Exchange Act of 1934,
as amended, or otherwise subject to the liability of that section, nor shall it
be deemed incorporated by reference in any filing under the Securities Act of
1933, as amended, except as shall be expressly set forth by specific reference
in such a filing.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
InteliData Technologies Corporation
(Registrant)
By: /s/ John R. Polchin
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John R. Polchin
Chief Financial Officer
Date: May 14, 2003
INDEX TO EXHIBITS
Exhibit Number Description
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99.1 Press Release dated May 14, 2003.
Ex-99.1 PRESS RELEASE DATED MAY 14, 2003
FOR IMMEDIATE RELEASE Contact: John R. Polchin
May 14, 2003 Chief Financial Officer
(703) 259-3000
INTELIDATA ANNOUNCES FIRST QUARTER 2003 RESULTS
Revenues Up 19%; Gross Margin Increases to 66%
RESTON, VA, May 14, 2003 - InteliData Technologies Corp. (Nasdaq: INTD), a
leading provider of Internet banking and electronic bill presentment and payment
technologies, today announced financial and operating results for the
three-month period ended March 31, 2003.
Revenue for the first quarter totaled $5.6 million, a 19% increase as
compared to $4.7 million for the year-ago quarter. Gross profit for the
three-month period ended March 31, 2003 totaled $3.7 million versus $2.7 million
for the first quarter of 2002. As a result of both revenue growth and continuing
cost efficiencies, the Company's gross margin for the period increased to 66%,
up from 58% as reported for the comparable prior year period.
EBITDA (earnings before interest, taxes, depreciation and amortization) was
$451,000 for the quarter versus a loss of $2.8 million for the first quarter of
2002. Operating loss was $118,000 for the current quarter versus a loss of $3.3
million for the first quarter of 2002. Net loss continued to improve to
$147,000, or less than $0.01 per share, compared to a net loss of $2.9 million,
or $0.06 per share, for the year-ago period.
The Company believes that EBITDA, a non-GAAP financial metric, is a useful
measure for evaluating its financial performance because of its focus on the
Company's results from operations before depreciation and amortization. EBITDA
is a common alternative measure of performance used by investors, financial
analysts and rating agencies. These groups use EBITDA, along with other
measures, to estimate the value of a company and to evaluate a company's ability
to meet debt service and other cash
<page>
requirements. A reconciliation of EBITDA to operating loss, as well as
additional information concerning EBITDA, is included in this release.
Cash and investments as of March 31, 2003 totaled $5.5 million, down
slightly from the Company's reported year-end position of $5.7 million.
"Our first quarter results again validate our business approach. As we
continue to realize growth from our recurring revenue base, we remain focused on
pursuing additional licensing and services business from both new and existing
clients. Despite a challenging climate within the financial services sector, we
were able to increase our revenue, maintain our cash resources and continue to
move closer to achieving net income profitability," said Alfred S. Dominick,
Jr., Chairman and CEO.
The Company reaffirmed its prior full-year 2003 guidance of revenues within
the $25 - $30 million range, while generating net income between $0.01 and $0.04
per share.
Attached are financial information comparing results for the three-month period
ended March 31, 2003 to the same period in 2002. A table reconciling EBITDA to
InteliData's reported operating loss (the most directly comparable GAAP measure)
is included with the condensed financial information in this release. For
comparability, EBITDA in the prior period has been restated to conform to the
2003 presentation. The EBITDA presented may not be comparable to similarly
titled measures reported by other companies. The Company believes that EBITDA,
while providing useful information, should not be considered in isolation from
or as an alternative to other financial measures determined under GAAP.
Additionally, this non-GAAP measure is not intended to represent an alternative
measure of operating loss or cash flow or any other measure of performance
determined in accordance with generally accepted accounting principles.
InteliData will hold a conference call today at 4:30 p.m. Eastern Time.
Investors can access the call by dialing 1-888-375-8244. The conference leader
is Al Dominick.
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International callers can dial (706) 634-5506. A replay can be accessed for 48
hours beginning at 7:00 p.m. on May 14th, by dialing 800-642-1687 and entering
code 9817468. Replays will also be available at InteliData's Web site
www.InteliData.com, www.StreetFusion.com and www.CompanyBoardroom.com for 30
days.
About InteliData
With over a decade of experience in the industry, InteliData provides Internet
banking and Electronic Bill Presentment and Payment (EBPP) technology and
services to leading banks, credit unions, financial institution processors and
credit card issuers. The Company develops and markets software products that
offer proven scalability, flexibility and security in supplying real-time,
Internet based banking services to their customers. The Company also serves as
an application service provider by providing Internet hosting and service bureau
solutions. Visit the company's Web site at www.InteliData.com.
"Safe Harbor" statement under the Private Securities Litigation Reform Act of
1995:
This release contains forward looking statements that are subject to risks and
uncertainties, including, but not limited to, our ability to continue funding
operating losses, our ability to manage our expenses in line with anticipated
business levels, the ability of the Company to complete product implementations
in required time frames and the Company's ability to increase its recurring
revenues and profits through its ASP business model, the impact of competitive
products, pricing pressure, product demand and market acceptancerisks, pace of
consumer acceptance of home banking and reliance on the Company's bank clients
to increase usage of Internet banking by their customers, the effect of general
economic conditions on the financial services industry, mergers and
acquisitions, risk of integration of the Company's technology by large software
companies, the ability of financial institution customers to implement
applications in the anticipated time frames or with the anticipated features,
functionality or benefits, reliance on key strategic alliances and newly
emerging technologies, the ability of the Company to leverage its third party
relationships into new business opportunities in the EBPP market, the on-going
viability of the mainframe marketplace and demand for traditional mainframe
products, the ability to attract and retain key employees, the availability of
cash for long-term growth, product obsolescence, ability to reduce product
costs, fluctuations in operating results, delays in development of highly
complex products and other risks detailed from time to time in InteliData
filings with the Securities and Exchange Commission. These risks could cause the
Company's actual results for 2003 and beyond to differ materially from those
expressed in any forward looking statements made by, or on behalf of,
InteliData. InteliData is not under any obligation (and expressly disclaims an
obligation to) update or alter its forward-looking statements, whether as a
result of new information or otherwise.
# # #
INTELIDATA TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
MARCH 31, 2003 AND DECEMBER 31, 2002
(in thousands, except share data; unaudited)
<table>
2003 2002
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ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 5,463 $ 5,674
Accounts receivable, net 3,703 2,974
Other receivables 279 309
Prepaid expenses and other current assets 836 802
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Total current assets 10,281 9,759
NONCURRENT ASSETS
Property and equipment, net 2,052 2,554
Goodwill, net 26,238 26,238
Intangibles, net 5,600 5,780
Other assets 175 175
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TOTAL ASSETS $ 44,346 $ 44,506
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 2,435 $ 2,081
Accrued expenses 2,681 3,458
Deferred revenues 1,464 1,673
Other liabilities 254 252
Net liabilities of discontinued operations 48 51
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TOTAL CURRENT LIABILITIES 6,882 7,515
Net liabilities of discontinued operations 175 200
Other liabilities 929 337
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TOTAL LIABILITIES 7,986 8,052
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COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock, $0.001 par value; authorized 5,000,000 shares;
no shares issued and outstanding -- --
Common stock, $0.001 par value; authorized 100,000,000 shares;
issued 49,802,000 shares in 2003 and 49,797,000 shares in 2002;
outstanding 48,996,000 shares in 2003 and 48,991,000 shares in 2002 50 50
Additional paid-in capital 302,833 302,833
Treasury stock, at cost: 806,000 shares in 2003 and 2002 (2,473) (2,473)
Deferred compensation (251) (304)
Accumulated deficit (263,799) (263,652)
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TOTAL STOCKHOLDERS' EQUITY 36,360 36,454
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 44,346 $ 44,506
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</table>
INTELIDATA TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2003 AND 2002
(in thousands, except per share data; unaudited)
<table>
2003 2002
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$ 5,625 $ 4,708
Cost of revenues 1,934 1,959
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Gross profit 3,691 2,749
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Operating expenses
General and administrative 2,089 2,494
Sales and marketing 393 850
Research and development 1,147 2,542
Amortization of goodwill and intangib 180 180
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Total operating expenses 3,809 6,066
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Operating loss (118) (3,317)
Unrealized gain on Sybase warrants -- 377
Other income (expenses), net (29) 14
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Loss before income taxes (147) (2,926)
Provision for income taxes -- --
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Loss from continuing operations (147) (2,926)
Discontinued operations, net of income taxes -- --
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Net loss $ (147) $ (2,926)
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Basic and diluted loss per common share
Loss from continuing operations $ (0.00) $ (0.06)
Income (loss) from discontinued operations 0.00 0.00
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Net loss $ (0.00) $ (0.06)
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Basic and diluted weighted-average
common shares outstanding 48,853 48,494
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Reconciliation of EBITDA to Operating Loss
Operating loss $ (118) $ (3,317)
Adjustments:
Depreciation and amortization 389 360
Amortization of intangibles 180 180
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EBITDA $ 451 $ (2,777)
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</table>
NOTE: EBITDA represents earnings before interest, taxes,
depreciation and amortization.