Email Press Release   Printer Friendly Version

Bottomline Technologies Reports Third Quarter Results

Record Revenues, Orders and Backlog Highlight Quarter

PORTSMOUTH, NH – April 25, 2007 – Bottomline Technologies (NASDAQ: EPAY), a leading provider of collaborative payment and invoice automation solutions, today reported financial results for the third quarter ended March 31, 2007.

Revenues for the third quarter were $31.1 million, a 25% increase from revenues of $24.9 million in the third quarter of last year. The growth in revenues includes a 16% increase in subscription and transaction revenues to $6.8 million for the third quarter of fiscal 2007 as compared to $5.8 million for the same period last year, and a 60% increase in software licenses to $4.1 million in the current quarter from $2.5 million in the third quarter last year.

Recurring revenues, consisting of subscription and transaction, maintenance and supplies revenue was $19.0 million as compared with $16.1 million in the third quarter of last year. New Annual Recurring Revenue (ARR) was $4.1 million as compared with $3.4 million and $2.3 million in the prior two quarters. New ARR represents the expected one-year revenue value from new subscription and transaction sales during the quarter as well as the one-year maintenance value on new software license sales.

Net loss for the third quarter was $1.9 million, or net loss per share of $0.08. During the third quarter, operating expenses of $20.2 million included acquisition-related amortization of intangible assets of $2.7 million and stock-based compensation expense of $2.0 million. Excluding these acquisition-related and stock compensation items, non-GAAP net income for the third quarter was $2.8 million, equating to non-GAAP net income per share of $0.12.

“Bottomline had a strong third quarter,” said Rob Eberle, President and CEO of Bottomline Technologies. “Record revenue and record orders were achieved through execution throughout the business. The results were driven by broad-based demand for our payment, invoice, banking and cash management and document solutions. Response to our new recurring revenue offerings drove a new high for ARR. With the combination of our recurring revenues, new ARR, backlog and continued strong demand for our software and recurring revenue offerings, we believe our business is well positioned to drive future growth as we go forward.”

Revenues for the nine months ended March 31, 2007 were $86.0 million as compared with $75.7 million in the same period last year. Net loss for the nine months ended March 31, 2007 was $5.5 million, or net loss per share of $0.23.

During the nine months ended March 31, 2007, the company incurred acquisition-related amortization of intangible assets of approximately $6.6 million and stock compensation expense of $5.9 million. Excluding these items, non-GAAP net income for the nine months ended March 31, 2007 was $7.0 million, or non-GAAP net income per share of $0.29.

 - Large worldwide organizations, including Universal Music Group, MTV Networks, Select Hotels Group and Gartmore, an international asset management firm, signed agreements for Bottomline’s accounts payable automation solution.

 - Further expanded the adoption of Legal eXchange™ within the insurance sector, signing multi-year legal spend management contracts with two property and casualty insurance leaders, Infinity Property & Casualty Company and Crum & Forster.

 - Bottomline’s WebSeries® banking platform was selected by a leading Asia-Pacific financial institution.

 - New customers such as Alpharma, HarperCollins Publishers, Muehlstein & Co., Northcliffe Media Ltd, Red Hat, Ryan Companies and Virtua Health System chose Bottomline’s payments and document process automation platforms.

 - Organizations such as Charter Indemnity, Hertz, John Muir Health and Vodafone expanded existing deployments of Bottomline’s payments, invoice and document automation platforms.

Corporate and Product Highlights:

 - Introduced Legal eXchange 7.0, featuring enhanced reporting capabilities and the ability to provide a complete view of legal spend through value-added services for converting any type of paper-based invoice into electronic data.

 - Formed a strategic partnership with Infosys BPO, the business process outsourcing (BPO) subsidiary of Infosys Technologies, to integrate Bottomline’s capabilities for invoice automation into the firm’s outsourced services offering for global corporate clients.

 - Expanded its long-term relationship for payments and invoice initiatives with HSBC, adding France to a growing list of European markets where the bank will offer its Bottomline-powered Accounts Payable Integration service. HSBC first introduced the solution to corporate customers in the US and UK in 2006.

Bottomline has presented supplemental non-GAAP financial measures as part of this earnings release. The non-GAAP financial measures exclude certain non-cash items, specifically amortization of intangible assets and stock compensation expense. The presentation of this information should not be considered in isolation to, or as a substitute for, the financial results presented in accordance with GAAP. Bottomline believes 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. Bottomline’s executive management team uses these same non-GAAP measures internally to assess the ongoing performance of the company. 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 and nine month periods ending March 31 is as follows:

 Email Press Release   Printer Friendly Version

Back to top