|By Business Wire||
|November 7, 2012 04:02 PM EST||
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
- Announced that Paymode-X, Bottomline’s business-to-business settlement network, has surpassed 200,000 vendors.
- Chosen by or expanded relationships with seven leading companies, including Ameriprise Financial, Inc., California FAIR Plan Property Insurance, CCMSI - Certain Underwriters At Lloyds London, EP Energy, Macerich Management Company, Security First Insurance Co. and Utica First Insurance Company, to provide Bottomline's cloud-based legal spend management solutions to automate, manage and control their legal spend.
- Announced an expanded relationship with Lloyds Bank in the UK to provide secure, reliable connectivity to Lloyds Bank’s infrastructure, allowing Lloyds’ corporate customers to streamline their payments management and optimize working capital.
- Announced a partnership with Australia and New Zealand Banking Group Ltd. (ANZ) to launch ANZ-Transactive Mobile, a mobile corporate banking solution that allows ANZ corporate clients to gain greater visibility and control of their cash management activities while on the go.
- Leading organizations, such as Deere & Company, Garden City Group, Los Angeles Department of Water & Power, Marriott International, National Steel & Shipbuilding, Paypoint Network Ltd., Raymond James, Shawbrook Bank Ltd., the State of Oklahoma, Sun Life Financial, Tata Steel UK Ltd., Texas Municipal League and Travelex Global Business Payments, chose Bottomline’s payment automation solutions.
- Selected for Bottomline’s leading SWIFT Access Service by customers such as Aon plc, Bank of Cyprus UK Limited, Honda Motor Europe Ltd., Reckitt Benckiser Treasury Services PLC and Vocalink Ltd.
- Signed new customers and deepened existing relationships in the healthcare vertical with customers such as Adventist Health, Bakersfield Heart Hospital, Catholic Healthcare Initiatives, Community Medical Center, Inc., Middlesex Hospital, Pioneers Memorial Healthcare and Shepherd Center, Inc.
First Quarter Strategic Corporate Highlights
- WebSeries®, Bottomline’s industry-leading cash management solution for advanced payment and reporting, was named a ‘best-in-class’ in all three categories of the CEB TowerGroup 2012 Payables Automation Technology Analysis.
- Completed the acquisition of Albany Software Ltd., one of the UK’s leading BACS solution providers.
- Delivered the latest commercial banking release, Business Banking 5.0, to over 360 of our financial institution customers. This release features a fully updated user interface that will enhance the user experience Bottomline’s customers provide to their business customers.
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:
Three Months Ended
|GAAP net income||$||18||$||1,741|
|Amortization of intangible assets||4,312||3,884|
|Core net income||$||10,548||$||8,941|
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.
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
|Three Months Ended|
|Subscriptions and transactions||$||28,547||$||17,594|
|Service and maintenance||26,455||28,849|
|Equipment and supplies||1,988||2,000|
|Cost of revenues:|
|Subscriptions and transactions||14,271||9,085|
|Service and maintenance||12,294||12,160|
|Equipment and supplies||1,522||1,571|
|Total cost of revenues||28,496||23,251|
|Sales and marketing||14,188||11,242|
|Product development and engineering||8,306||5,932|
|General and administrative||6,561||4,933|
|Amortization of intangible assets||4,312||3,884|
|Total operating expenses||33,367||25,991|
|Income (loss) from operations||(174)||3,234|
|Other income (expense), net||46||(113)|
|Income (loss) before income taxes||(128)||3,121|
|Provision (benefit) for income taxes||(146)||1,380|
|Basic net income per share attributable to common stockholders||$||0.00||$||0.05|
|Diluted net income per share attributable to common stockholders||$||0.00||$||0.05|
Shares used in computing basic net income per share:
|Shares used in computing diluted net income per share:||35,626||34,841|
Core net income (excludes amortization of intangible assets, acquisition-related expenses,
restructuring expenses and stock compensation expense):(1)
|Core net income||$||10,548||$||8,941|
|Diluted core net income per share||$||0.30||$||0.26|
|Core net income excludes charges for amortization of intangible assets of $4,312 and|
|$3,884, acquisition-related expenses of $1,715 and $124, restructuring expenses of $296|
|and $27 and equity-based compensation of $4,207 and $3,165, for the three months ended|
|September 30, 2012 and 2011, respectively.|
Unaudited Condensed Consolidated Balance Sheets
|Cash, cash equivalents and short-term investments||$||107,135||$||124,862|
|Other current assets||16,858||15,465|
|Total current assets||169,933||185,671|
|Property and equipment, net||20,352||19,756|
|Intangible assets, net||209,753||177,941|
|Liabilities and stockholders' equity|
|Total current liabilities||69,807||67,315|
|Deferred revenue, non-current||7,933||7,072|
|Deferred income taxes||6,883||1,641|
|Accumulated other comprehensive loss||(4,171)||(6,564)|
|Total stockholders' equity||321,531||314,186|
|Total liabilities and stockholders' equity||$||408,502||$||392,371|
SYS-CON Events announced today that eCube Systems, the leading provider of modern development tools and best practices for Continuous Integration on OpenVMS, will exhibit at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. eCube Systems offers a family of middleware products and development tools that maximize return on technology investment by leveraging existing technical equity to meet evolving business needs. ...
Oct. 24, 2016 10:00 AM EDT Reads: 4,479
Effectively SMBs and government programs must address compounded regulatory compliance requirements. The most recent are Controlled Unclassified Information and the EU’s GDPR have Board Level implications. Managing sensitive data protection will likely result in acquisition criteria, demonstration requests and new requirements. Developers, as part of the pre-planning process and the associated supply chain, could benefit from updating their code libraries and design by incorporating changes.
Oct. 24, 2016 09:45 AM EDT Reads: 1,677
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
Oct. 24, 2016 09:15 AM EDT Reads: 4,657
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
Oct. 24, 2016 09:00 AM EDT Reads: 2,306
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
Oct. 24, 2016 09:00 AM EDT Reads: 3,473
Fifty billion connected devices and still no winning protocols standards. HTTP, WebSockets, MQTT, and CoAP seem to be leading in the IoT protocol race at the moment but many more protocols are getting introduced on a regular basis. Each protocol has its pros and cons depending on the nature of the communications. Does there really need to be only one protocol to rule them all? Of course not. In his session at @ThingsExpo, Chris Matthieu, co-founder and CTO of Octoblu, walk you through how Oct...
Oct. 24, 2016 08:15 AM EDT Reads: 3,142
SYS-CON Events announced today that Embotics, the cloud automation company, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Embotics is the cloud automation company for IT organizations and service providers that need to improve provisioning or enable self-service capabilities. With a relentless focus on delivering a premier user experience and unmatched customer support, Embotics is the fas...
Oct. 24, 2016 08:00 AM EDT Reads: 844
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
Oct. 24, 2016 07:15 AM EDT Reads: 923
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the...
Oct. 24, 2016 05:45 AM EDT Reads: 11,379
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
Oct. 24, 2016 05:15 AM EDT Reads: 2,523
The Quantified Economy represents the total global addressable market (TAM) for IoT that, according to a recent IDC report, will grow to an unprecedented $1.3 trillion by 2019. With this the third wave of the Internet-global proliferation of connected devices, appliances and sensors is poised to take off in 2016. In his session at @ThingsExpo, David McLauchlan, CEO and co-founder of Buddy Platform, discussed how the ability to access and analyze the massive volume of streaming data from millio...
Oct. 24, 2016 05:00 AM EDT Reads: 3,100
SYS-CON Events announced today that Pulzze Systems will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
Oct. 24, 2016 05:00 AM EDT Reads: 2,501
SYS-CON Events announced today that Interface Masters Technologies, a leader in Network Visibility and Uptime Solutions, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Interface Masters Technologies is a leading vendor in the network monitoring and high speed networking markets. Based in the heart of Silicon Valley, Interface Masters' expertise lies in Gigabit, 10 Gigabit and 40 Gigabit Eth...
Oct. 24, 2016 04:45 AM EDT Reads: 3,332
Successful digital transformation requires new organizational competencies and capabilities. Research tells us that the biggest impediment to successful transformation is human; consequently, the biggest enabler is a properly skilled and empowered workforce. In the digital age, new individual and collective competencies are required. In his session at 19th Cloud Expo, Bob Newhouse, CEO and founder of Agilitiv, will draw together recent research and lessons learned from emerging and established ...
Oct. 24, 2016 04:30 AM EDT Reads: 1,327
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
Oct. 24, 2016 04:30 AM EDT Reads: 2,506
One of biggest questions about Big Data is “How do we harness all that information for business use quickly and effectively?” Geographic Information Systems (GIS) or spatial technology is about more than making maps, but adding critical context and meaning to data of all types, coming from all different channels – even sensors. In his session at @ThingsExpo, William (Bill) Meehan, director of utility solutions for Esri, will take a closer look at the current state of spatial technology and ar...
Oct. 24, 2016 04:00 AM EDT Reads: 1,723
As software becomes more and more complex, we, as software developers, have been splitting up our code into smaller and smaller components. This is also true for the environment in which we run our code: going from bare metal, to VMs to the modern-day Cloud Native world of containers, schedulers and microservices. While we have figured out how to run containerized applications in the cloud using schedulers, we've yet to come up with a good solution to bridge the gap between getting your conta...
Oct. 24, 2016 04:00 AM EDT Reads: 1,489
SYS-CON Events announced today that Streamlyzer will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Streamlyzer is a powerful analytics for video streaming service that enables video streaming providers to monitor and analyze QoE (Quality-of-Experience) from end-user devices in real time.
Oct. 24, 2016 03:45 AM EDT Reads: 971
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
Oct. 24, 2016 03:45 AM EDT Reads: 899
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
Oct. 24, 2016 03:30 AM EDT Reads: 9,676