Bottomline Technologies, a provider of collaborative payment, invoice and document automation solutions, reported financial results for the second quarter ended December 31, 2009.
Revenues for the second quarter were $40.1 million, an increase of $5.8 million, or 17%, from the second quarter of last year.
Gross margin for the second quarter was $22.6 million, an increase of $3.6 million from the second quarter of last year. Net income for the second quarter was $0.7 million, or net income per share of $0.03.
Core net income for the second quarter was $6.6 million after excluding acquisition-related expenses of $3.5 million and equity-based compensation of $2.4 million. Core net income was double the $3.3 million reported in the second quarter of last year. Core earnings per share was $0.25 as compared with $0.14 in the second quarter of last year.
We had a very strong second quarter highlighted by 17% revenue growth from the prior year, says Rob Eberle, president and CEO of Bottomline Technologies. In fact, we outperformed in all our important metrics with cash flow from operations of $10 million driving a quarter end cash balance of $55 million, core net income of $6.6 million and strong demand across our business driving orders of $43 million. Strategically, we added several new customers, expanded important and existing customer relationships and made significant progress on the integration of PayMode during the quarter. We enter the third quarter with a strong pipeline and confident we will continue to execute against our strategic plan.
Revenues for the six months ended December 31, 2009 increased to $76.7 million as compared with $69.8 million in the same period last year. Net income for the six months ended December 31, 2009 was $1.9 million, or net income per share of $0.07.
Core net income for the six months ended December 31, 2009 was $13.4 million after excluding acquisition-related expenses of $7.2 million and equity-based compensation of $4.3 million. Core net income was more than double the $6.1 million reported for the six months ended December 31, 2008. Core earnings per share was $0.52 for the six months ended December 31, 2009 as compared with $0.25 in the same period last year.
Second Quarter Customer Highlights
Extended relationships and expanded use of Bottomlines WebSeries cash management platform for payments and reporting by Franklin Templeton, Raymond James, Morgan Stanley Smith Barney, Cigna Corporation, Medavie Blue Cross and Fidelity.
Welcomed new customers who selected Bottomline solutions for increased efficiency, security and visibility of enterprise payment and document processes, including Trustmark Insurance Company, Assurant Solutions, Reliance Steel & Aluminum Co., State of Vermont Office of the State Treasurer, Quanta Services, Silliker, Inc., Systems Material Handling, ALK Abello, Inc., and Super Store Industries.
Strengthened existing customer relationships through orders to expand existing implementations of Bottomline corporate payment and document automation solutions from organizations such as Thermo Fisher Scientific, Weight Watchers International, RRI Energy, Electric Insurance, St. Elizabeth Healthcare, Pacificare Health Systems, OneBeacon Insurance, NYC School Construction Authority, Amcor Sunclipse, Highwoods Properties, Intercontinental Terminals, Agility, TLD Acquisition Company, Illinois Secretary of State, H. Muehlstein and Company, Herbalife International, Novartis, The Prudential, South West Water, Invesco and Lafarge Aggregates.
Our Legal eXchange platform added several new customers including Providence Holdings, an A.M. Best-ranked property and casualty company, and Monitor Liability Managers, Inc.
Selected by organizations seeking to optimize their Microsoft Dynamics AX implementations with advanced capabilities for transactional document automation, including Les Produits Chimiques Magnus, Younger Optics, Biagi Brothers, Valley Towing Products, National Decorations Inc. (NDI), and Survey Sampling International.
D.C.