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.
- 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.
| Three Months Ended
|GAAP net income||$||18||$||1,741|
|Amortization of intangible assets||4,312||3,884|
|Core net income||$||10,548||$||8,941|