Fundtech Reports Financial Results for the Third Quarter Of 2011
3rd Quarter revenue of $42.2 million represents year-over-year organic growth of 17%. 3rd Quarter GAAP EPS 8 Cents / 3rd Quarter Non GAAP EPS 29 Cents.
JERSEY CITY, N.J. — November 2, 2011 - Fundtech Ltd. (NASDAQ: FNDT), a market leader in global transaction banking solutions, today announced financial results for the third quarter of 2011. Fundtech posted quarterly revenues of $42.2 million, a 17% increase year-over-year, compared to third quarter revenues of $36.0 million in 2010, and a 4% increase compared to second quarter 2011 revenues of $40.5 million.
On a GAAP (Generally Accepted Accounting Principles) basis, Fundtech reported net income of $1.3 million, or $0.08 per diluted share, for the third quarter of 2011 compared with net income of $2.9 million, or $0.19 per diluted share, in the third quarter of 2010, and net income of $2.1 million, or $0.13 per diluted share, in the second quarter of 2011.
Excluding stock-based compensation, amortization of intangibles, costs incurred in connection with the previously announced agreements to be acquired by GTCR and to merge with S1 Corporation and deferred taxes, Fundtech’s adjusted (non-GAAP) net income for the third quarter of 2011 was $4.6 million, or $0.29 per diluted share, compared with $4.1 million, or $0.26 per diluted share, in the third quarter of 2010 and $4.2 million, or $0.27 per diluted share, in the second quarter of 2011. (See Schedule A attached to this news release -- Reconciliation from GAAP).
As previously announced based on its current assessment, Fundtech expects that the closing of the transaction to be acquired by GTCR will occur toward the end of the fourth quarter of 2011. We are, therefore, withdrawing our financial guidance for 2011. There is, however, no assurance of the exact timing of the closing nor that the closing can be consummated on the terms provided in the GTCR Merger Agreement.
“I am very proud of the achievements of the company throughout this year, as well as over the last few years. I believe that Fundtech will continue to be a leading provider of products and solutions to the global financial community“ said Fundtech's Chairman of the Board Avi Fischer. “I want to thank our dedicated employees, led by the founder and CEO Reuven Ben Menachem and his management team, who collectively built this excellent company."
“I want to thank Avi for his leadership over the last few years,” said Reuven Ben Menachem “and I also want to thank the members of our Board of Directors for their help and support. I am very excited about this new chapter that is about to unfold working with our new partners at GTCR and Bankserv, and I believe that we will continue to be the leading global provider of products and solutions to the financial community.”
Reconciliation of GAAP Results to Non-GAAP Results
Fundtech provides non-GAAP operating results as a supplement to its GAAP financial results. The presentation of this information should not be considered in isolation to, or as a substitute for, the financial results presented in accordance with GAAP. Management believes that non-GAAP financial measures are useful to investors because they allow for an evaluation of Fundtech with a focus on the performance of its core operations.
Fundtech’s executive management team uses these same non-GAAP measures internally to assess the ongoing performance of the company. Since this information is not a GAAP measurement of financial performance, there are material limitations to its usefulness on a stand-alone basis, including the lack of comparability of this presentation to the GAAP financial results of other companies.
We are presenting Fundtech’s non-GAAP net income as well as Adjusted EBITDA. We define non-GAAP net income as net income plus stock-based compensation, amortization of intangibles, depreciation charges, impairment of goodwill and other intangible assets, merger expenses, impairment of marketable securities, and deferred taxes. We define Adjusted EBITDA as net income plus stock-based compensation, depreciation and amortization expenses, merger expenses, impairment of marketable securities, deferred and current taxes, and interest expense (income). A detailed reconciliation of GAAP net income to non-GAAP net income and Adjusted EBITDA is included in the attached Schedule A.
Fundtech (NASDAQ: FNDT), was founded in 1993, and is a leading provider of software and services to banks of all sizes around the world. Payments systems include wire transfers, ACH origination, cross-border payments and remittance. Cash management systems are designed for large corporate through small business clients. Fundtech operates the world’s largest SWIFT service bureau. We offer an extensive line of financial supply chain applications including electronic invoice presentment and supply chain financing. We are the leading provider of CLS systems to the world’s largest banks. More than 1,000 clients throughout the world rely on Fundtech solutions to improve operational efficiency and provide greater competitiveness through innovative business-to-business services. For more information, visit www.fundtech.com.
Forward Looking Statements:
This news release contains forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted or quantified. When used in this Release, the words, "estimates," "expects," "anticipates," "believes," "plans," "intends," and variations of such words and similar expressions are intended to identify forward-looking statements that involve risks and uncertainties. Future events and actual results could differ materially from those set forth in, contemplated by or underlying the forward-looking statements. The factors that could cause actual results to differ materially from those discussed or identified from time to time in Fundtech's public filings, including its Annual Report on Form 20-F for the year ended December 31, 2010, including general economic and market conditions, changes in regulations and taxes and changes in competition in the pricing environment. Undue reliance should not be placed on these forward-looking statements, which are applicable only as of the date hereof. Fundtech undertakes no obligation to revise or update these forward-looking statements to reflect events or circumstances that arise after the date of this release or to reflect the occurrence of unanticipated events.
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CFO - Fundtech Ltd.