From the Wires
Bottomline Technologies Reports First Quarter Results
By: Business Wire
Nov. 7, 2012 04:02 PM
Bottomline Technologies (NASDAQ: EPAY), a leading provider of cloud-based payment, invoice and banking solutions, today reported financial results for the first quarter ended September 30, 2012.
Revenues for the first quarter were $61.7 million, an increase of $9.2 million, or 18%, from the first quarter of last year. Subscription and transaction revenues, which are primarily related to the company’s banking, legal spend management and Paymode-X® cloud-based applications, increased 62% from the first quarter of last year to $28.5 million.
Gross margin for the first quarter was $33.2 million, an increase of $4.0 million from the first quarter of last year. Net income for the first quarter was $0.02 million, or net income per share of $0.00.
Core net income for the first quarter was $10.5 million. Core net income excludes acquisition-related expenses, including amortization of intangible assets, of $6.0 million, restructuring expenses of $0.3 million and equity-based compensation of $4.2 million. Core earnings per share was $0.30.
“We had an outstanding quarter with financial results well ahead of our expectations and significant advancement of our strategic plan,” said Rob Eberle, President and CEO of Bottomline Technologies. “Our priority remains growing our cloud-based offerings. We are investing in innovation to extend Bottomline’s leadership position, confident the investments we are making will drive future predictable and profitable revenue growth for Bottomline. The first quarter results were a strong start to the fiscal year and we believe we are well positioned to drive continued growth and increased shareholder value through the remainder of the year.”
First Quarter Customer Highlights
First Quarter Strategic Corporate Highlights
Non-GAAP Financial Measures
We have presented supplemental non-GAAP financial measures as part of this earnings release. The presentation of this non-GAAP financial information should not be considered in isolation from, or as a substitute for, our financial results presented in accordance with GAAP. Core net income and core earnings per share are non-GAAP financial measures. These non-GAAP financial measures exclude certain items, specifically amortization of intangible assets, impairment losses on equity investments, equity-based compensation, acquisition-related expenses (including acquisition-related earn-outs) and restructuring related costs. Acquisition-related expenses include legal and professional fees and other transaction costs associated with business and asset acquisitions, costs associated with integrating acquired businesses, including costs for transitional employees or services, integration related professional services costs and other charges we incur as a direct result of our acquisition and integration efforts. We believe that these supplemental non-GAAP financial measures are useful to investors because they allow for an evaluation of the company with a focus on the performance of its core operations, including more meaningful comparisons of financial results to historical periods and to the financial results of less acquisitive peer and competitor companies. Our executive management team uses these same non-GAAP financial measures internally to assess the ongoing performance of the company. Additionally, the same non-GAAP information is used for planning purposes, including the preparation of operating budgets, and in communications with our board of directors in respect of financial performance. Since this information is not a GAAP measurement of financial performance, there are material limitations to its usefulness on a stand-alone basis, including the lack of comparability of this presentation to the GAAP financial results of other companies. A reconciliation of the GAAP results to the non-GAAP results for the three months ended September 30, 2012 and 2011 is as follows:
About Bottomline Technologies
Bottomline Technologies (NASDAQ: EPAY) provides cloud-based payment, invoice and banking solutions to corporations, financial institutions and banks around the world. The company’s solutions are used to streamline, automate and manage processes involving payments, invoicing, global cash management, supply chain finance and transactional documents. Organizations trust Bottomline to meet their needs for cost reduction, competitive differentiation and optimization of working capital. Headquartered in the United States, Bottomline also maintains offices in Europe and Asia-Pacific. For more information, visit www.bottomline.com.
Bottomline Technologies, Paymode-X, WebSeries and the BT logo are trademarks of Bottomline Technologies (de), Inc. which may be registered in certain jurisdictions. All other brand/product names are trademarks of their respective holders.
This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements reflecting our expectations about the impact of our investments in cloud-based offerings on our future revenue and profitability and our ability to drive continued growth and increased shareholder value during the remainder of our fiscal year 2013. Any statements that are not statements of historical fact (including but not limited to statements containing the words “will,” “believes,” “plans,” “anticipates,” “expects,” “look forward,” “confident,” “estimates” and similar expressions) should be considered to be forward-looking statements. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors including, among others, competition, market demand, technological change, strategic relationships, recent acquisitions, international operations and general economic conditions. For additional discussion of factors that could impact Bottomline Technologies' operational and financial results, refer to our Form 10-K for the fiscal year ended June 30, 2012 and any subsequently filed Form 10-Q’s and Form 8-K’s or amendments thereto. Any forward-looking statements represent our views only as of today and should not be relied upon as representing our views as of any subsequent date. We do not assume any obligation to update any forward-looking statements.
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