Bottomline Technologies, a leading global technology provider of Financial Resource Management software and managed services, today announced the acquisition of the assets of Albion Business Machines Limited (ABM), a provider of electronic funds transfer software. ABM, who trade as ABM Microbank, is a United Kingdom-based software house specialising in BACS and Direct Debit Management products. ABM is the fifth largest BACS solution provider in the UK, with more than 1,500 users of the company’s payment software.
Peter Fortune, president of Bottomline Technologies Europe, said, “ABM has a long-established and loyal customer base who will benefit from access to Bottomline’s market-leading solutions. ABM customers can now take advantage of Bottomline’s wide choice of products for BACSTEL-IP migration, including its recently launched subscription service.”
“Bottomline is the leading organisation in this market, and offers the broadest set of solutions. Going forward, ABM’s customers will realise significant benefits in being supported by Bottomline,” said Ben Gunn, managing director of ABM. “With BACS driving a major upgrade program, our customers will have real security in having access to BACS solutions from the recognised market leader.”
A provider of BACS payment software solutions for nearly 20 years, ABM has a wide range of customers in the public sector, professional and commercial organisations, and a significant medium-sized business customer base. Bottomline will begin to support and offer ABM customers an organised upgrade path to BACSTEL-IP immediately.
The transaction closed on 7th May 2004. Financial terms were not disclosed.
Bottomline Technologies Reports Third Quarter Results
Bottomline Technologies (NASDAQ: EPAY), a leading global technology provider of Financial Resource Management (FRM) software and services, reported financial results for the third quarter ended March 31, 2004.
Revenues for the third quarter were $21.6 million compared with $18.6 million in the third quarter of last year. The net loss for the third quarter was $241,000, or a net loss per share of $0.01, compared with a net loss of $2.2 million and a net loss per share of $0.14 in the third quarter of last year.
During the third quarter, operating expenses of $12.3 million included net acquisition-related charges of $875,000, which represented amortization of intangible assets of approximately $866,000 and stock compensation expense of $9,000 associated with stock options assumed in a prior acquisition. Excluding these acquisition-related items, pro forma net income for the third quarter was $634,000, or pro forma net income per share of $0.04, compared with pro forma break even results in the third quarter of last year.
“I am delighted that the business achieved a step up in operating results while at the same time building for the future,” said Joe Mullen, President and CEO of Bottomline. “I believe current customer opportunities such as AIG, and near term market opportunities such as BACSTEL-IP, will drive continued improvement in the business. BACSTEL-IP is a mandated payment technology change occurring in our UK marketplace. This new standard requires UK businesses to either buy new software or subscribe to a subscription based payment service, both of which Bottomline offers, providing a unique growth opportunity for the company.”
Revenues for the nine months ended March 31, 2004 were $59.7 million compared with $52.6 million in the same period of last year. The net loss for the nine months ended March 31, 2004 was $2.8 million, or a net loss per share of $0.17, compared with a net loss of $26.1 million and a net loss per share of $1.67 in the nine months ended March 31, 2003.
The results for the nine months ended March 31, 2003 included the cumulative effect of an accounting change in the amount of $13.8 million, which related to a goodwill impairment charge recorded by the company in connection with the transition to FASB Statement 142. The net loss before the cumulative effect of this accounting change was $12.3 million, or a net loss per share of $0.79.
During the nine months ended March 31, 2004, operating expenses of $35.9 million included net acquisition-related charges of $4.2 million, which represented a charge for in-process research and development of $789,000 associated with the acquisition of Create!form International, Inc., amortization of intangible assets of approximately $3.4 million and stock compensation expense of $32,000 associated with stock options assumed in a prior acquisition. Excluding these acquisition-related items, pro forma net income for the nine months ended March 31, 2004 was $1.4 million, or pro forma net income per share of $0.08, compared with a pro forma net loss per share of $0.36 in the same period of last year.
Bottomline has presented non GAAP financial measures in the form of pro forma results as part of this earnings release since such information excludes certain non-cash items and management believes it is a more accurate measurement of Bottomline?s overall operating performance. Management believes that presenting financial measures exclusive of certain non-cash items helps identify trends in the company?s business and the company uses these measures to establish budgets and operational goals, to manage its business and to evaluate the performance of the company. The presentation of this information should not be considered in isolation to, or as a substitute for, the results presented in accordance with GAAP. A reconciliation of the GAAP net loss to the pro forma results for the periods ending March 31 is as follows:
Three Months Ended March 31,Nine Months Ended March 31,
GAAP Net Loss$(241)$(2,225)$(2,835)$(26,056)
Cumulative Effect of Accounting Change13,764
In-process Research and Development789
Amortization of Intangible Assets8662,2353,3686,660
Stock Compensation Expense9313295
Pro forma Net Income (Loss)$634$41$1,354$(5,537)
Â·During the quarter over 90 new orders for Bottomline?s BACSTEL-IP versions of PayBaseÂ® and WebSeriesÂ® were received from leading UK-based organizations including Trinity Mirror, BNP Paribas, and PayPoint. BACSTEL-IP is the new electronic payment standard for the UK and requires businesses to upgrade to this new standard by the end of 2005.
Â·In addition, over 150 companies in the United Kingdom have subscribed to and are now running Bottomline?s recently launched BACSTEL-IP subscription service.
Â·The Domestic Brokerage Group of American International Group, Inc. (AIG) selected Bottomline?s Legal eXchange? to provide software and technology services that enable the electronic receipt and management of legal expense budgets and invoices. AIG is a leading international insurance and financial services organization, with operations in approximately 130 countries and jurisdictions.
Â·Bottomline added several new customers for document output management solutions including Chiquita Brands, Pfaltzgraft, Rockline Industries, and Chesapeake Corporation.
Â·Leading companies such as GlaxoSmithKline, Virgin Mobile, Oppenheimer & Co., and Ametek chose Bottomline to deliver financial resource management solutions.
Corporate and Product Highlights:
Â·The new BACSTEL-IP subscription service, designed to provide the benefits of BACSTEL-IP to all organizations, was launched in the UK.
Â·The WebSeriesÂ® platform for payment lifecycle management features a robust new electronic payments (ACH) module with enhanced capabilities including child support and tax payments.
Â·Bottomline joined the PeopleSoft Partner Connection Program as a Certified Software Partner.
Â·Bottomline and Royal Bank of Canada Global Services marked their 10-year electronic banking relationship with a celebration and awards ceremony.
Â·The United Way honored Bottomline with a Spirit of Giving award for Bottomline?s contributions to the community.
Â·Bottomline signed two new international distributors, expanding the distribution channel to include Sweden and South Africa.
About Bottomline Technologies
Bottomline Technologies (NASDAQ: EPAY) is a leading global technology provider of Financial Resource Management (FRM) solutions. Bottomline’s comprehensive set of FRM offerings enables businesses and financial institutions to more effectively manage their critical financial transactions, cash decisions and trading partner relationships, leveraging the Web. FRM applications include Electronic Payments and Cash Management, Electronic Invoice Receipt and Management, Electronic Invoice Presentment and Payment (EIPP), Electronic Banking and Information Reporting. Founded in 1989, Bottomline maintains its corporate headquarters in Portsmouth, NH and international headquarters in Reading, England. For more information, visit Bottomline on the Web at www.bottomline.com, or dial (800) 243-2528 or +441189258250.