InteliData Technologies Corp. announced financial and operating results for the three-month period ended September 30, 2002.
Revenue for the third quarter of 2002 was $6.0 million, an increase of 13% over the $5.3 million reported for the third quarter 2001. Gross profit for the quarter totaled $3.6 million compared to $2.9 million for the third quarter of 2001. Consequently, gross margins for the quarter were 60% versus 54% as reported for the year-ago period.
Earnings before interest, taxes, depreciation and amortization, excluding non-cash compensation (EBITDA), was a loss of $950,000 for the three months ended September 30, 2002, representing the seventh consecutive quarterly improvement. Net loss for the quarter ended September 30, 2002 was $1.6 million or $0.03 per share, compared to a net loss of $8.8 million or $0.19 per share for the third quarter of 2001.
Cash and investments as of September 30, 2002 totaled $6.1 million, representing a $1.6 million decrease from the $7.7 million as reported at June 30, 2002. This considerable decrease in “burn rate”, from an average of $1 million per month during the first six months of 2002 to approximately $500,000 per month this period, is primarily attributed to managed expense reduction efforts across the Company and it is expected that further improvements will be witnessed by year-end.
“I am pleased with our third quarter performance, specifically our ability to diligently manage expenses without impacting top-line growth,” said Alfred S. Dominick, Jr., Chairman and CEO. “As our gross margin and EBITDA results show, we continue to realize measurable benefits from our recurring revenue business model. It is these economics, combined with robust product offerings and continuing development activities that we expect will create future value for both customers and shareholders,” Dominick added.
* Wachovia Corporation placed into service our enterprise-wide, in-house payment solution, making it now available to all new retail customers.
* Expanded USAA relationship by implementing Web-based “on-us” payments that allow members to electronically pay credit card, insurance and consumer loan bills from their USAA cash accounts.
* ALLTEL alliance secured a top 100 Bank that will utilize our payment technology.
* First Hawaiian Bank and Bank of the West executed extensions of ASP contracts through August 2003.
Despite the aforementioned customer news and continuing efforts regarding other pipeline prospects, the delays encountered in securing new business combined with revenue recognition policies has now placed additional pressure on achieving full-year 2002 revenues in accordance with prior guidance. As a result, the Company now anticipates full-year 2002 revenues of $21 – $23 million. However, the Company is improving its prior full-year EBITDA loss guidance from $5 – $9 million to $5 – $6 million.
Looking to 2003, the Company is projecting preliminary full-year revenues to be between $25 – $30 million, or 25% growth as measured against the mid- point on a year-over-year basis, while generating $0.01 to $0.04 per share.
Dominick concluded, “The primary objective of our Company is to achieve sustainable profitability which will ultimately lead to increased shareholder value. Our belief in the continued acceleration of both bank and consumer adoption of Internet-based bill payment functionality remains strong. Although today’s marketplace is the most challenging we have encountered, our customers continue to validate the strength of our product offerings.”
With over a decade of experience in the industry, InteliData provides Internet banking and Electronic Bill Payment and Presentment (EBPP) technology and services to leading banks, credit unions, financial institution processors and credit card issuers. The Company develops and markets software products that offer proven scalability, flexibility and security in supplying real- time, Internet based banking services to their customers. The Company also serves as an application service provider by providing Internet hosting and service bureau solutions. Visit the company’s Web site at .
For complete details on InteliData’s 3Q/02 performance visit CardData ([www.carddata.com]).