UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 26, 2004
InteliData Technologies Corporation
(Exact Name of Registrant as Specified in Charter)
DELAWARE 000-21685 54-1820617
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(State or other jurisdiction of (Commission File Number) (I.R.S. Employer
incorporation) Identification No.)
11600 Sunrise Valley Drive
Suite 100
Reston, Virginia 20191
(Address of principal executive offices and zip code)
Registrant's telephone number, including area code: (703) 259-3000
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(c) Exhibits
The following document is being furnished as an exhibit to this Current
Report on Form 8-K pursuant to Item 12:
Exhibit 99.1 Press release issued by InteliData Technologies
Corporation on February 26, 2004.
Item 12. Results of Operations and Financial Condition.
On February 26, 2004, InteliData Technologies Corporation ("InteliData" or the
"Company") issued a press release announcing its results of operations and
financial condition for the quarter ended December 31, 2003. A copy of the press
release is being furnished as Exhibit 99.1 to this Current Report on Form 8-K.
This Current Report on Form 8-K and the press release attached hereto are being
furnished by the Company pursuant to Item 12 of Form 8-K, in accordance with SEC
Release Nos. 33-8176 and 34-47226, insofar as they report the Company's results
of operations and financial condition for the quarter ended December 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
Date: February 26, 2004 By: /s/ John R. Polchin
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John R. Polchin
Chief Financial Officer
EXHIBIT INDEX
Exhibit Number Exhibit
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Exhibit 99.1 Press release issued by InteliData Technologies
Corporation on February 26, 2004.
EXHIBIT 99.1
FOR IMMEDIATE RELEASE Contact: John R. Polchin
February 26, 2004 Chief Financial Officer
(703) 259-3000
INTELIDATA REPORTS FOURTH QUARTER AND FULL-YEAR RESULTS
RESTON, VA, February 26, 2004 - InteliData Technologies Corp. (Nasdaq:
INTD), a leading provider of electronic bill payment and presentment
technologies, today announced financial results for the three-month and
twelve-month periods ended December 31, 2003.
Revenue for the fourth quarter totaled $4.4 million, a decrease of $954,000
from the $5.3 million as reported for the year-ago quarter. Full-year revenue
totaled $20.6 million as compared to $21.5 million for the full-year period of
2002.
Gross profit for the three-month and twelve month periods ended December
31, 2003 totaled $2.6 million and $13.1 million, respectively. This resulted in
a gross margin for the three-month period of 59% as compared to 61% for the
prior-year period, while on a full-year basis, the Company's gross margin
increased to 63% as compared to 61% for the twelve months of 2002.
Net loss for the three-month and twelve month periods ended December 31,
2003 was $873,000, or $0.02 per share, and $1.6 million, or $0.03 per share,
respectively. These net loss results compare to $200,000, or less than $0.01 per
share, and $8.6 million, or $0.18 per share, for the comparable year-ago
periods.
Cash and investments as of December 31, 2003 totaled $7.6 million, compared
to $5.7 million as of year-end 2002. The yearend balance includes approximately
$3.1 million of net proceeds from a July warrant exercise.
<page>
"While our recurring revenue from bill payment experienced steady growth
across the year, it was unable to offset declines from anticipated Online
Banking client departures and the migration of First Hawaiian Bank and Bank of
The West to our in-house solution. These events negatively impacted full-year
revenues by approximately $3 million, contributing to the 4% year-over-year
decrease," said Alfred S. Dominick, Jr., Chairman and CEO. "Despite our improved
bottom-line performance during 2003 and considerable technology advancements,
the top-line simply did not meet expectations. We do maintain a pipeline
comprised of both new and existing client opportunities; however, the ability to
project when these prospective sales will be realized remains difficult as banks
continue to struggle with project priorities and budgets."
With incremental customer de-conversions and migrations expected during the
first-half of 2004, coupled with timing uncertainties surrounding current
pipeline opportunities, the Company is providing updated 2004 full-year revenue
guidance consistent with FY2003 results. However, based on the Company's
improved net loss performance during FY2003, the Company remains focused on
reaching net income profitability for FY2004.
Attached is the financial information comparing results for the three-month and
twelve-month periods ended December 31, 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 7:30 p.m. on
February 26th. Domestic participants may dial (800) 642-1687 and enter
Conference ID 5553314, while international callers should dial 706-645-9291
for the replay. Online audio replays will also be available at InteliData's
Web site www.intelidata.com, www.streetevents.com and
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www.companyboardroom.com for 30 days.
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About InteliData
With over a decade of experience, InteliData provides online banking and
Electronic Bill Payment and Presentment (EBPP) technology and services to
leading banks, credit unions, brokerage firms, 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. The Company also serves as an application
service provider by providing Internet hosting and application service provider
solutions. Visit the Company's Web site at www.InteliData.com.
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"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 maintain customers and
increase its recurring revenues and/or reduce operating costs associated with
its ASP business, 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 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
DECEMBER 31, 2003 AND 2002
(in thousands, except share data; unaudited)
2003 2002
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ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 7,603 $ 5,674
Accounts receivable, net 2,890 2,974
Other receivables 180 309
Prepaid expenses and other current assets 625 802
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Total current assets 11,298 9,759
NONCURRENT ASSETS
Property and equipment, net 1,529 2,554
Goodwill, net 26,238 26,238
Intangibles, net 5,060 5,780
Other assets 211 175
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TOTAL ASSETS $ 44,336 $ 44,506
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 1,531 $ 2,081
Accrued expenses 1,599 3,458
Deferred revenues 1,351 1,673
Other liabilities 364 252
Net liabilities of discontinued operations 45 51
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TOTAL CURRENT LIABILITIES 4,890 7,515
Other liabilities 380 337
Net liabilities of discontinued operations 75 200
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TOTAL LIABILITIES 5,345 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 52,065,000 shares in 2003 and 49,797,000 shares in 2002;
outstanding 51,231,000 shares in 2003 and 48,991,000 shares in 2002 52 50
Additional paid-in capital 306,963 302,833
Treasury stock, at cost: 834,000 shares in 2003 and 806,000 shares in 2002 (2,546) (2,473)
Deferred compensation (228) (304)
Accumulated other comprehensive income -- --
Accumulated deficit (265,250) (263,652)
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TOTAL STOCKHOLDERS' EQUITY 38,991 36,454
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 44,336 $ 44,506
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INTELIDATA TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2003 AND 2002
(in thousands, except per share data; unaudited)
Three months ended Twelve months ended
December 31, December 31,
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2003 2002 2003 2002
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Revenues 4,362 5,316 20,630 21,495
Cost of revenues 1,809 2,060 7,549 8,474
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Gross profit 2,553 3,256 13,081 13,021
Operating expenses
General and administrative 2,059 1,324 7,496 8,629
Selling and marketing 581 400 1,910 2,947
Research and development 1,074 1,701 5,020 8,807
Amortization of intangibles 180 180 720 720
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Total operating expenses 3,894 3,605 15,146 21,103
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Operating loss (1,341) (349) (2,065) (8,082)
Realized gain (loss) on sales of investments -- -- -- (748)
Other income (expenses), net 180 12 179 99
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Loss before income taxes (1,161) (337) (1,886) (8,731)
Provision (benefit) for income taxes (288) (137) (288) (137)
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Net Loss $ (873) $ (200) $ (1,598) $ (8,594)
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Basic and diluted earnings (loss) per common share $ (0.02) $ (0.00) $ (0.03) $ (0.18)
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Basic and diluted weighted-average
common shares outstanding 51,078 48,840 50,028 48,869
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