CheckFree, a provider of financial electronic commerce services, reported gains for the first quarter of fiscal year 2006.
GAAP net income for the first quarter was $26.4 million, compared to net income of $6.2 million for the same quarter last year. Earnings per share were $0.28 for the first quarter of fiscal 2006, compared to earnings per share of $0.07 for the first quarter of last year. Net cash provided by operating activities was $43.5 million for the first quarter of fiscal 2006, compared to $31.7 million for the same period last year.
Underlying net income for the first quarter was $43.1 million, compared to $26.9 million for the same quarter of last year. Underlying earnings per share were $0.46 for the first quarter of fiscal 2006, compared to $0.29 for the first quarter of last year.
The difference between the two figures is due to expected acquisition-related intangible amortization expense, the SFAS 123(R) impact of options issued prior to July 1, 2004 and the related tax benefits of both.
“First quarter performance was fueled by strong electronic billing and payment transaction growth, better-than-expected software sales and delays in investment spending now slated to start later in the year,” said David Mangum, CFO at CheckFree. “We continue to expect full-year earnings per share in the range of $1.08 to $1.13 on a GAAP basis and $1.50 to $1.54 on an underlying basis, and free cash flow of about $170 million for the year.”
For the first quarter, the company reported that its electronic commerce division processed 266 million transactions for the quarter, a 9% sequential increase over the fourth quarter of fiscal 2005, and delivered 42.7 million e-Bills, a sequential increase of 4% over the fourth quarter of fiscal 2005.
CheckFree investment services reached two million portfolios under management, which compares to almost 1.7 million portfolios under management in the first quarter of fiscal 2005, an annual growth of 18%. The software division had a revenue growth of 54%.
Magnum predicts second quarter revenues in range of $210 million to $215 million, and GAAP earnings per share in the range of $0.33 to $0.36.