|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|
- Mainstream Business Applications and In-Memory Databases
- IoT: I Don't Care How Big It Is!
- Apple iOS and the Enterprise - Latest Developments
- In 2014 Big Data Investments Will Account for Nearly $30 Billion - Eventually Accounting for $76 Billion by 2020 End
- Power Panel: IoT Poineers Discuss Internet Of Things
- "Cloud Computing 2.0" -- I'm Serious
- Rackspace Positioned in the Leaders Quadrant of Gartner's Magic Quadrant for Cloud-Enabled Managed Hosting in Both North America and Europe
- Microsoft Surface Pro 3 Review
- Understanding Application Performance on the Network | Part 1
- Understanding Application Performance on the Network | Part 3
- AppDynamics Closes $120 Million in Growth Financing to Accelerate Platform and Sales Expansion
- @ThingsExpo Debuts Internet Of Things Newsletter
- Mainstream Business Applications and In-Memory Databases
- The Odd Couple: Marrying Agile and Waterfall
- The Butterfly Effect Within IT
- Findly Enhances Recruiting Efficiency With New Single Sign-on Portal
- Zuora Caps Record Breaking Subscribed 2014 with the 63rd Release of the Award Winning Z-Business Platform
- The Agile PMO
- IoT: I Don't Care How Big It Is!
- Flexera Software Increases Commitment to Europe with Germany-based Datacenter to Host FlexNet Manager Suite Cloud for European Customers
- Complete Surface Pro 3 Review - 3 days later
- How to Monitor Swift/iOS8 Applications for Crashes and Performance Issues
- Web Service Monitoring 101: Identifying Bad Deployments
- CORRECTING and REPLACING Android and the Open Automotive Alliance Shift into the Next Gear
- Building a Drag-and-Drop Shopping Cart with AJAX
- What Is AJAX?
- Google Maps! AJAX-Style Web Development Using ASP.NET
- Where Are RIA Technologies Headed in 2008?
- Dolphin Announces Open API With Over 50 Add-ons Including Dropbox and Wikipedia
- How and Why AJAX, Not Java, Became the Favored Technology for Rich Internet Applications
- Flashback to January 2006: Exclusive SYS-CON.TV Interviews on "OpenAjax Alliance" Announcement
- "Real-World AJAX" One-Day Seminar Arrives in Silicon Valley
- AJAXWorld Conference & Expo to Take Place October 2-4, 2006, at the Santa Clara Convention Center, California
- AJAX Sponsor Webcasts Are Now Available at AJAXWorld Website
- AJAXWorld University Announces AJAX Developer Bootcamp
- i-Technology 2008 Predictions: Where's RIAs, AJAX, SOA and Virtualization Headed in 2008?
14th International Cloud Expo, held on June 10–12, 2014 at the Javits Center in New York City, featured three content-packed days with a rich array of sessions about the business and technical value of cloud computing, Internet of Things, Big Data, and DevOps led by exceptional speakers from every sector of the IT ecosystem. The Cloud Expo series is the fastest-growing Enterprise IT event in the past 10 years, devoted to every aspect of delivering massively scalable enterprise IT as a service.
Aug. 29, 2014 11:00 PM EDT Reads: 2,018
Hardware will never be more valuable than on the day it hits your loading dock. Each day new servers are not deployed to production the business is losing money. While Moore’s Law is typically cited to explain the exponential density growth of chips, a critical consequence of this is rapid depreciation of servers. The hardware for clustered systems (e.g., Hadoop, OpenStack) tends to be significant capital expenses. In his session at 15th Cloud Expo, Mason Katz, CTO and co-founder of StackIQ, to discuss how infrastructure teams should be aware of the capitalization and depreciation model of these expenses to fully understand when and where automation is critical.
Aug. 27, 2014 02:30 PM EDT Reads: 1,647
Over the last few years the healthcare ecosystem has revolved around innovations in Electronic Health Record (HER) based systems. This evolution has helped us achieve much desired interoperability. Now the focus is shifting to other equally important aspects – scalability and performance. While applying cloud computing environments to the EHR systems, a special consideration needs to be given to the cloud enablement of Veterans Health Information Systems and Technology Architecture (VistA), i.e., the largest single medical system in the United States.
Aug. 26, 2014 12:00 PM EDT Reads: 2,370
In his session at 15th Cloud Expo, Mark Hinkle, Senior Director, Open Source Solutions at Citrix Systems Inc., will provide overview of the open source software that can be used to deploy and manage a cloud computing environment. He will include information on storage, networking(e.g., OpenDaylight) and compute virtualization (Xen, KVM, LXC) and the orchestration(Apache CloudStack, OpenStack) of the three to build their own cloud services. Speaker Bio: Mark Hinkle is the Senior Director, Open Source Solutions, at Citrix Systems Inc. He joined Citrix as a result of their July 2011 acquisition of Cloud.com where he was their Vice President of Community. He is currently responsible for Citrix open source efforts around the open source cloud computing platform, Apache CloudStack and the Xen Hypervisor. Previously he was the VP of Community at Zenoss Inc., a producer of the open source application, server, and network management software, where he grew the Zenoss Core project to over 10...
Aug. 25, 2014 07:00 PM EDT Reads: 2,363
Most of today’s hardware manufacturers are building servers with at least one SATA Port, but not every systems engineer utilizes them. This is considered a loss in the game of maximizing potential storage space in a fixed unit. The SATADOM Series was created by Innodisk as a high-performance, small form factor boot drive with low power consumption to be plugged into the unused SATA port on your server board as an alternative to hard drive or USB boot-up. Built for 1U systems, this powerful device is smaller than a one dollar coin, and frees up otherwise dead space on your motherboard. To meet the requirements of tomorrow’s cloud hardware, Innodisk invested internal R&D resources to develop our SATA III series of products. The SATA III SATADOM boasts 500/180MBs R/W Speeds respectively, or double R/W Speed of SATA II products.
Aug. 25, 2014 06:00 PM EDT Reads: 7,163
As more applications and services move "to the cloud" (public or on-premise) cloud environments are increasingly adopting and building out traditional enterprise features. This in turn is enabling and encouraging cloud adoption from enterprise users. In many ways the definition is blurring as features like continuous operation, geo-distribution or on-demand capacity become the norm. NuoDB is involved in both building enterprise software and using enterprise cloud capabilities. In his session at 15th Cloud Expo, Seth Proctor, CTO at NuoDB, Inc., will discuss the experiences from building, deploying and using enterprise services and suggest some ways to approach moving enterprise applications into a cloud model.
Aug. 20, 2014 06:45 PM EDT Reads: 2,410
Until recently, many organizations required specialized departments to perform mapping and geospatial analysis, and they used Esri on-premise solutions for that work. In his session at 15th Cloud Expo, Dave Peters, author of the Esri Press book Building a GIS, System Architecture Design Strategies for Managers, will discuss how Esri has successfully included the cloud as a fully integrated SaaS expansion of the ArcGIS mapping platform. Organizations that have incorporated Esri cloud-based applications and content within their business models are reaping huge benefits by directly leveraging cloud-based mapping and analysis capabilities within their existing enterprise investments. The ArcGIS mapping platform includes cloud-based content management and information resources to more widely, efficiently, and affordably deliver real-time actionable information and analysis capabilities to your organization.
Aug. 20, 2014 10:00 AM EDT Reads: 1,680
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity. In his session at Internet of @ThingsExpo, Mac Devine, Distinguished Engineer at IBM, will discuss bringing these three elements together via Systems of Discover.
Aug. 17, 2014 02:30 PM EDT Reads: 3,272
Cloud and Big Data present unique dilemmas: embracing the benefits of these new technologies while maintaining the security of your organization’s assets. When an outside party owns, controls and manages your infrastructure and computational resources, how can you be assured that sensitive data remains private and secure? How do you best protect data in mixed use cloud and big data infrastructure sets? Can you still satisfy the full range of reporting, compliance and regulatory requirements? In his session at 15th Cloud Expo, Derek Tumulak, Vice President of Product Management at Vormetric, will discuss how to address data security in cloud and Big Data environments so that your organization isn’t next week’s data breach headline.
Aug. 16, 2014 07:00 PM EDT Reads: 1,868
The cloud is everywhere and growing, and with it SaaS has become an accepted means for software delivery. SaaS is more than just a technology, it is a thriving business model estimated to be worth around $53 billion dollars by 2015, according to IDC. The question is – how do you build and scale a profitable SaaS business model? In his session at 15th Cloud Expo, Jason Cumberland, Vice President, SaaS Solutions at Dimension Data, will give the audience an understanding of common mistakes businesses make when transitioning to SaaS; how to avoid them; and how to build a profitable and scalable SaaS business.
Aug. 16, 2014 01:00 PM EDT Reads: 2,435
SYS-CON Events announced today that Gridstore™, the leader in software-defined storage (SDS) purpose-built for Windows Servers and Hyper-V, will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Gridstore™ is the leader in software-defined storage purpose built for virtualization that is designed to accelerate applications in virtualized environments. Using its patented Server-Side Virtual Controller™ Technology (SVCT) to eliminate the I/O blender effect and accelerate applications Gridstore delivers vmOptimized™ Storage that self-optimizes to each application or VM across both virtual and physical environments. Leveraging a grid architecture, Gridstore delivers the first end-to-end storage QoS to ensure the most important App or VM performance is never compromised. The storage grid, that uses Gridstore’s performance optimized nodes or capacity optimized nodes, starts with as few a...
Aug. 15, 2014 06:30 PM EDT Reads: 1,697
SYS-CON Events announced today that Solgenia, the global market leader in Cloud Collaboration and Cloud Infrastructure software solutions, will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Solgenia is the global market leader in Cloud Collaboration and Cloud Infrastructure software solutions. Designed to “Bridge the Gap” between personal and professional social, mobile and cloud user experiences, our solutions help large and medium-sized organizations dramatically improve productivity, reduce collaboration costs, and increase the overall enterprise value by bringing collaboration and infrastructure solutions to the cloud.
Aug. 15, 2014 02:00 PM EDT Reads: 1,700
Cloud computing started a technology revolution; now DevOps is driving that revolution forward. By enabling new approaches to service delivery, cloud and DevOps together are delivering even greater speed, agility, and efficiency. No wonder leading innovators are adopting DevOps and cloud together! In his session at DevOps Summit, Andi Mann, Vice President of Strategic Solutions at CA Technologies, will explore the synergies in these two approaches, with practical tips, techniques, research data, war stories, case studies, and recommendations.
Aug. 13, 2014 09:45 PM EDT Reads: 2,558
Enterprises require the performance, agility and on-demand access of the public cloud, and the management, security and compatibility of the private cloud. The solution? In his session at 15th Cloud Expo, Simone Brunozzi, VP and Chief Technologist(global role) for VMware, will explore how to unlock the power of the hybrid cloud and the steps to get there. He'll discuss the challenges that conventional approaches to both public and private cloud computing, and outline the tough decisions that must be made to accelerate the journey to the hybrid cloud. As part of the transition, an Infrastructure-as-a-Service model will enable enterprise IT to build services beyond their data center while owning what gets moved, when to move it, and for how long. IT can then move forward on what matters most to the organization that it supports – availability, agility and efficiency.
Aug. 12, 2014 10:30 PM EDT Reads: 1,854
Every healthy ecosystem is diverse. This is especially true in cloud ecosystems, where portability and interoperability are more important than old enterprise models of proprietary ownership. In his session at 15th Cloud Expo, Mark Baker, Server Product Manager at Canonical/Ubuntu, will discuss how single vendors used to take the lead in creating and delivering technology, but in a cloud economy, where users want tools of their preference, when and where they need them, it makes no sense.
Aug. 11, 2014 02:45 PM EDT Reads: 1,677