|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|
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
Oct. 23, 2016 07:00 AM EDT Reads: 4,091
Amazon has gradually rolled out parts of its IoT offerings, but these are just the tip of the iceberg. In addition to optimizing their backend AWS offerings, Amazon is laying the ground work to be a major force in IoT - especially in the connected home and office. In his session at @ThingsExpo, Chris Kocher, founder and managing director of Grey Heron, explained how Amazon is extending its reach to become a major force in IoT by building on its dominant cloud IoT platform, its Dash Button strat...
Oct. 23, 2016 06:30 AM EDT Reads: 4,734
SYS-CON Events announced today that SoftNet 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. SoftNet Solutions specializes in Enterprise Solutions for Hadoop and Big Data. It offers customers the most open, robust, and value-conscious portfolio of solutions, services, and tools for the shortest route to success with Big Data. The unique differentiator is the ability to architect and ...
Oct. 23, 2016 06:00 AM EDT Reads: 676
A critical component of any IoT project is what to do with all the data being generated. This data needs to be captured, processed, structured, and stored in a way to facilitate different kinds of queries. Traditional data warehouse and analytical systems are mature technologies that can be used to handle certain kinds of queries, but they are not always well suited to many problems, particularly when there is a need for real-time insights.
Oct. 23, 2016 05:30 AM EDT Reads: 3,919
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
Oct. 23, 2016 05:15 AM EDT Reads: 1,834
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. 23, 2016 04:45 AM EDT Reads: 4,334
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. 23, 2016 03:45 AM EDT Reads: 1,693
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, will discuss why and how ReadyTalk diverted from healthy revenue an...
Oct. 23, 2016 03:30 AM EDT Reads: 2,952
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. 23, 2016 02:30 AM EDT Reads: 941
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. 23, 2016 02:30 AM EDT Reads: 851
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. 23, 2016 02:30 AM EDT Reads: 9,649
In past @ThingsExpo presentations, Joseph di Paolantonio has explored how various Internet of Things (IoT) and data management and analytics (DMA) solution spaces will come together as sensor analytics ecosystems. This year, in his session at @ThingsExpo, Joseph di Paolantonio from DataArchon, will be adding the numerous Transportation areas, from autonomous vehicles to “Uber for containers.” While IoT data in any one area of Transportation will have a huge impact in that area, combining sensor...
Oct. 23, 2016 02:15 AM EDT Reads: 656
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.
Oct. 23, 2016 02:00 AM EDT Reads: 10,963
Cloud based infrastructure deployment is becoming more and more appealing to customers, from Fortune 500 companies to SMEs due to its pay-as-you-go model. Enterprise storage vendors are able to reach out to these customers by integrating in cloud based deployments; this needs adaptability and interoperability of the products confirming to cloud standards such as OpenStack, CloudStack, or Azure. As compared to off the shelf commodity storage, enterprise storages by its reliability, high-availabil...
Oct. 23, 2016 01:30 AM EDT Reads: 1,050
The security needs of IoT environments require a strong, proven approach to maintain security, trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vic...
Oct. 23, 2016 01:30 AM EDT Reads: 3,661
In the next forty months – just over three years – businesses will undergo extraordinary changes. The exponential growth of digitization and machine learning will see a step function change in how businesses create value, satisfy customers, and outperform their competition. In the next forty months companies will take the actions that will see them get to the next level of the game called Capitalism. Or they won’t – game over. The winners of today and tomorrow think differently, follow different...
Oct. 23, 2016 01:15 AM EDT Reads: 895
The IoT industry is now at a crossroads, between the fast-paced innovation of technologies and the pending mass adoption by global enterprises. The complexity of combining rapidly evolving technologies and the need to establish practices for market acceleration pose a strong challenge to global enterprises as well as IoT vendors. In his session at @ThingsExpo, Clark Smith, senior product manager for Numerex, will discuss how Numerex, as an experienced, established IoT provider, has embraced a ...
Oct. 23, 2016 01:15 AM EDT Reads: 1,002
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 7-9, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and ...
Oct. 23, 2016 12:45 AM EDT Reads: 3,552
The Internet of Things (IoT), in all its myriad manifestations, has great potential. Much of that potential comes from the evolving data management and analytic (DMA) technologies and processes that allow us to gain insight from all of the IoT data that can be generated and gathered. This potential may never be met as those data sets are tied to specific industry verticals and single markets, with no clear way to use IoT data and sensor analytics to fulfill the hype being given the IoT today.
Oct. 23, 2016 12:15 AM EDT Reads: 2,456
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
Oct. 23, 2016 12:00 AM EDT Reads: 1,826