Fundtech says Q3 results comply with lowered guidance

Revenues eroded slightly from Q2, fell 24% from parallel
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Fundtech (Nasdaq:FNDT), a provider of global payments and cash management solutions, today announced that third-quarter revenue slipped slightly from the second quarter to $10.6 million, and dropped 24% from the third quarter of 2000.

Company chief executive Reuven Ben Menachem commented that the results were in line with the company's revised guidance.

The company blamed its sequential decline to delayed transactions after the September 11th attacks. It also said that several PAYplus for CLS contracts were pushed out after the Continuous Link Settlement Bank announced an additional delay of the go-live date from the fourth quarter of 2001 until the second quarter of 2002.

Net loss for the third quarter was $14.4 million, or $1.02 per share, compared with a net profit of $2.1 million, or $0.15 per diluted share in the same period in 2000.

The net loss was larger than originally anticipated due to a subsequent decision to transfer an additional $4.5 million in unrealized losses on investments from the equity section of the balance sheet to the "other expense" category.

Excluding restructuring and integration expense of $281,000, a provision for doubtful accounts of $3.1 million, unrealized losses on marketable securities of $6.0 million, and amortization charges attributable to acquisition-related goodwill and other intangible assets of $632,000, the adjusted net loss was $4.4 million, or $0.31 per share, Fundtech said.

That compares with an adjusted net profit of $2.9 million, or $0.19 per share in the third quarter of 2000.