Lightbridge, Inc., a leading e-commerce company, reported financial results for the quarter ended March 31, 2007.
Revenue from continuing operations for the first quarter of 2007 was a record $16.3 million compared to $13.5 million for the first quarter of 2006. This represents an increase of 21% compared to the prior year.
The Company reported net income, including discontinued operations, of $1.9 million, or $0.07 per fully diluted share, for the first quarter of 2007 versus net income, including discontinued operations, of $1.6 million, or $0.06 per fully diluted share, for the comparable period of 2006. Included in net income for the first quarter of 2007 is a gain of $1.4 million related to the sale of the Telecom Decisioning Services (TDS) business.
Income from continuing operations was $2.1 million, or $0.07 per fully diluted share, for the first quarter of 2007 versus $497,000, or $0.02 per fully diluted share, reported for the first quarter of 2006. First quarter 2007 results included share-based compensation expense of $488,000 and restructuring charges of $148,000 due to a reduction of general and administrative staff related to the Company’s sale of the TDS business. First quarter 2006 results included share-based compensation expense of approximately $1.4 million and a restructuring charge of $114,000. For the first quarter of 2007, income from continuing operations before share-based compensation expense and restructuring charges (a non-GAAP financial measure) was $2.7 million, or $0.09 per fully diluted share. A detailed reconciliation of the GAAP and non-GAAP measures is included at the end of this release.
The Company recorded a gain of $1.4 million in connection with the sale of the TDS business on February 20, 2007 and incurred a loss from TDS operations in the first quarter of $1.6 million. The Company’s TDS business results have been restated as discontinued operations for all periods.
“Authorize.Net had an impressive performance this quarter and we continue to see strong indications for future growth through the increasing new merchant additions and expanding channel partnerships,” said Robert Donahue, president and CEO.
Donahue added, “We believe Authorize.Net continues to be the payment processing leader in the small to medium-sized business (SMB) market we serve. We are focused on maintaining that position through our leading payment gateway, superior customer service and support, powerful channel relationships and our strategic vision of providing one-stop shopping for SMB merchants. In addition, the potential acquisition of PSiGate, which we announced on April 23, 2007, will help us achieve a strategic goal by expanding our reach into Canada and enabling us to service the SMB marketplace throughout Canada and the United States. Our strategy to transform Lightbridge into a business solely focused on the fast growing e-commerce payments space has been realized with the sale of our TDS business and we are now able to concentrate all our efforts and resources on growing our e-commerce payments business.”
— Processed a record $8.9 billion of merchant transactions in the first quarter, up 24% compared to the same period in 2006.
— Processed 86.4 million transactions in the first quarter, a 19% increase over the comparable quarter last year.
— Gross merchant adds in the first quarter of 2007 were a record 19,876, with net merchant adds at a record 9,159, up 25% and 50%, respectively, compared to the same period in 2006.
— Active merchants as of March 31, 2007 were at a record 175,439, up 23% over the prior year.
Cash and Short-Term Investments
At March 31, 2007, Lightbridge’s cash and short-term investment position was $122.7 million, compared to $116.2 million at December 31, 2006. This includes funds held for merchants of $8.9 million compared to $8.8 million at December 31, 2006.
Company Performance versus Previous Guidance – First Quarter 2007
Lightbridge’s revenue of $16.3 million was at the mid-point of the Company’s revised first quarter guidance issued on February 21, 2007 of $15.9 million to $16.7 million.
Income from continuing operations per fully diluted share was $0.07 for the first quarter of 2007, at the high end of the guidance range of $0.01 to $0.07.
Net income, including discontinued operations, for the first quarter of 2007 of $0.07 per fully diluted share was $0.02 above the high end of the guidance range of ($0.03) to $0.05, due principally to a lower than expected loss from the TDS business. The Company recorded a gain on the sale of the TDS business of $1.4 million, which was at the higher end of the guidance range of $1.0 to $1.5 million.
Income from continuing operations before share-based compensation expense and restructuring charges (a non-GAAP financial measure) was $0.09 per fully diluted share, at the higher end of the guidance range of $0.05 to $0.11 for the first quarter of 2007.
Guidance is only current as of today, April 25, 2007. The Company undertakes no obligation to update its estimates. The Company is providing second quarter guidance based on continuing operations.
— The Company anticipates revenue for the second quarter of 2007 to be in the range of $16.6 to $17.4 million.
— The Company anticipates net income per fully diluted share for the second quarter of 2007 to be in the range of $0.05 to $0.11. The Company anticipates share-based compensation expense in the second quarter of 2007 associated with the expensing of stock options in accordance with SFAS 123(R) in the range of $400,000 to $600,000, or $0.01 to $0.02 per fully diluted share. The Company expects to record restructuring charges in the range of $100,000 to $150,000 in the second quarter related to the reduction of general and administrative staff.
— For the second quarter of 2007, net income per fully diluted share before share-based compensation expense and restructuring charges (a non- GAAP financial measure) is anticipated to be in the range of $0.07 to $0.13.
The Company has decided not to provide full year guidance at this time given the recently announced intent to acquire PSiGate.
In addition to reporting financial results in accordance with generally accepted accounting principles, (GAAP), the Company has provided non-GAAP financial measures, which it believes are useful to help investors better understand its financial performance, competitive position and prospects for the future. Such measures exclude share-based compensation expense and restructuring charges. Management believes these non-GAAP financial measures assist in providing a more complete understanding of the Company’s underlying operational results and trends. Management uses these measures along with their corresponding GAAP financial measures to help manage the Company’s business and to help evaluate its performance compared to the marketplace. However, the presentation of non-GAAP financial measures is not meant to be considered in isolation or as superior to or as a substitute for financial information provided in accordance with GAAP. The non-GAAP financial measures used by the Company may be calculated differently from, and, therefore, may not be comparable to, similarly titled measures used by other companies. Investors are encouraged to review the reconciliations of these non-GAAP financial measures to the comparable GAAP results, contained in the attached exhibits and found on the Company’s website at: www.lightbridge.com.
Lightbridge, Inc. (NASDAQ: LTBG) Lightbridge’s payment processing business, Authorize.Net provides secure, reliable, Internet Protocol (IP) based payment gateway solutions that enable merchants to authorize, settle and manage electronic transactions anytime, anywhere, via Web sites, at retail, mail order/telephone order (MOTO) call centers and on wireless devices. In addition to its payment solutions, Authorize.Net offers extensive value-add products designed to help merchants manage their business, fight fraud, and improve profitability. Authorize.Net is sold through an extensive network of partners that offer its IP-based payment services to their merchant customers.
For complete details on Lightbridge’s first quarter results visit CardData ([www.carddata.com]).