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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): July 30, 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)
(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 July 30, 2003.
ITEM 9. REGULATION FD DISCLOSURE (AND ITEM 12. RESULTS OF OPERATIONS AND
FINANCIAL CONDITION)
The following information contained in this Item 9 is being furnished
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 and 34-47583.
Attached and incorporated herein by reference as Exhibit 99.1 is a copy of
the press release of InteliData Technologies Corporation ("InteliData") dated
July 30, 2003, reporting InteliData's results of operations and financial
condition for the quarter ended June 30, 2003.
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: July 30, 2003
INDEX TO EXHIBITS
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Exhibit Number Description
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99.1 Press Release dated July 30, 2003.
Ex-99.1 PRESS RELEASE DATED July 30, 2003
FOR IMMEDIATE RELEASE Contact: John R. Polchin
July 30, 2003 Chief Financial Officer
(703) 259-3000
INTELIDATA ANNOUNCES SECOND QUARTER 2003 RESULTS
Revenues Up 9%, Net Loss Negligible
RESTON, VA, July 30, 2003 - InteliData Technologies Corp. (Nasdaq: INTD), a
leading provider of Internet banking and electronic bill presentment and payment
technologies, today announced financial results for the three-month period ended
June 30, 2003.
Revenue for the second quarter totaled $6.0 million, a 9% increase as
compared to $5.5 million for the year-ago quarter. Gross profit for the
three-month period ended June 30, 2003 totaled $4.0 million versus $3.4 million
for the second quarter of 2002. The Company's gross margin for the second
quarter increased to 67%, up from 62% as reported for the comparable prior-year
period.
Net loss for the period ended June 30, 2003 was $11,000, or $0.00 per share
compared to a net loss of $3.9 million, or $0.08 per share for the year-ago
period.
Cash and investments as of June 30, 2003 totaled $6.2 million, an increase
from the Company's reported March 31, 2003 position of $5.5 million. The cash
position does not reflect the net proceeds of $3.1 million from warrant
exercises in early July.
"Our second quarter showed sound top-line growth, further improvement in
our gross margin and our balance sheet has been strengthened by increasing our
cash position. As we enter the latter half of 2003, our efforts will be focused
on aggressive management of pipeline opportunities, providing commercial
availability of InteliWorks, our flagship payment technology, and achieving net
income profitability," said Alfred S. Dominick, Jr., Chairman and CEO.
<page>
As a result of continuing softness across our economy, the Company's Card
Solutions unit has witnessed delays in obtaining new business. As banks and
credit card issuers are confronting higher bankruptcy claims and weakening
portfolios, their willingness to focus on procuring new, credit card related
software is limited. Further, the Company was recently notified of a
re-organization of the e-Commerce group within Fidelity National Information
Solutions ("FNIS") (formerly ALLTEL Information Services). The Company is
currently re-assessing several prospects that are being jointly managed between
InteliData and FNIS. While the Company will continue to pursue these
opportunities, with or without the continued involvement of FNIS, management
believes it is prudent to remove them from any forward-looking forecasts.
Therefore, the Company is now forecasting full-year 2003 revenue in the range of
$22 - $26 million. At the mid-point of this current guidance, the Company
expects to be net income profitable for the year.
"While our Card business has been adversely impacted by the economy, I am
pleased that our payment technologies are making significant progress towards
becoming the industry standard for bill payment warehousing. Being in production
with MasterCard RPPS affords significant remittance economics as we continue to
extend our leadership position in the EBPP space," Dominick concluded.
Attached are financial information comparing results for the three-month
and six-month periods ended June 30, 2003 to the same periods in 2002.
InteliData will hold a conference call today at 4:30 p.m. Eastern Time.
Investors can access the call by dialing (888) 375-8244. The conference leader
is Al Dominick. International callers can dial (706) 634-5506. A replay can be
accessed for 48 hours beginning at 7:00 p.m. on July 30th, by dialing (800)
642-1687 and entering code 1755413. Replays will also be available at
InteliData's Web site www.InteliData.com, www.StreetFusion.com and
www.CompanyBoardroom.com for 30 days.
<page>
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 Company's ability to
retain key customers and to increase revenues from existing customers, the
impact of competitive products, pricing pressure, product demand and market
acceptance risks, 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
JUNE 30, 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 $ 6,204 $ 5,674
Accounts receivable, net 3,272 2,974
Other receivables 139 309
Prepaid expenses and other current assets 669 802
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Total current assets 10,284 9,759
NONCURRENT ASSETS
Property and equipment, net 1,833 2,554
Goodwill, net 26,238 26,238
Intangibles, net 5,420 5,780
Other assets 213 175
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TOTAL ASSETS $ 43,988 $ 44,506
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 2,201 $ 2,081
Accrued expenses 2,425 3,458
Deferred revenues 1,157 1,673
Other liabilities 256 252
Net liabilities of discontinued operations 45 51
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TOTAL CURRENT LIABILITIES 6,084 7,515
Net liabilities of discontinued operations 139 200
Other liabilities 817 337
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TOTAL LIABILITIES 7,040 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 50,431,000 shares in 2003 and 49,797,000 shares in 2002;
outstanding 49,618,000 shares in 2003 and 48,991,000 shares in 2002 50 50
Additional paid-in capital 303,572 302,833
Treasury stock, at cost: 813,000 shares in 2003 and 806,000 shares in 2002 (2,486) (2,473)
Deferred compensation (378) (304)
Accumulated deficit (263,810) (263,652)
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TOTAL STOCKHOLDERS' EQUITY 36,948 36,454
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 43,988 $ 44,506
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</table>
INTELIDATA TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
THREE AND SIX MONTHS ENDED JUNE 30, 2003 AND 2002
(in thousands, except per share data; unaudited)
<table>
Three Months Ended Six Months Ended
June 30, June 30,
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2003 2002 2003 2002
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Revenues $ 5,951 $ 5,461 $ 11,576 $ 10,169
Cost of revenues 1,948 2,079 3,882 4,038
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Gross profit 4,003 3,382 7,694 6,131
Operating expenses
General and administrative 1,931 2,436 4,020 4,930
Sales and marketing 485 904 878 1,754
Research and development 1,430 2,631 2,577 5,173
Amortization of goodwill and intangibles 180 180 360 360
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Total operating expenses 4,026 6,151 7,835 12,217
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Operating loss (23) (2,769) (141) (6,086)
Realized loss on sales of investments -- (748) -- (748)
Unrealized loss on Sybase warrants -- (377) -- --
Other income (expenses), net 12 41 (17) 55
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Loss before income taxes (11) (3,853) (158) (6,779)
Provision for income taxes -- -- -- --
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Loss from continuing operations (11) (3,853) (158) (6,779)
Discontinued operations, net of income taxes -- -- -- --
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Net loss $ (11) $ (3,853) $ (158) $ (6,779)
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Basic and diluted loss per common share
Loss from continuing operations $ (0.00) $ (0.08) $ (0.00) $ (0.14)
Income (loss) from discontinued operations (0.00) 0.00 (0.00) 0.00
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Net loss $ (0.00) $ (0.08) $ (0.00) $ (0.14)
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Basic and diluted weighted-average
common shares outstanding 49,002 48,501 48,935 48,513
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</table>