Fundtech, a provider of software and services to banks of all sizes, announces third quarter results ended 30 September 2008. The revenues composed $31.5 million, an 18% increase year-over-year.
On a GAAP (Generally Accepted Accounting Principles) basis, the Company reported net income of $1.5 million or $0.09 per diluted share, for the third quarter of 2008.
This period proved to be rather positive for company. Excluding stock-based compensation, amortization of intangibles and Impairment of Marketable Securities, Fundtech’s adjusted net income for the third quarter of 2008 was $3.3 million, or $0.20 per diluted share.
Anticipating the results for the fourth quarter of 2008 the company expects revenues of between $29.5 million and $30.5 million, GAAP earnings per diluted share of between a (loss) of ($0.08) and loss of $(0.02) and Non-GAAP earnings per diluted share, before all amortization expenses and stock-based compensation expenses, of between $0.00 and $0.06. Non-GAAP results reflect performance of core operations.
The amortization expenses for the fourth quarter of 2008 are expected to be approximately $600,000 and stock-based compensation expenses approximately $750,000.
For fiscal 2008 the Company is revising its prior guidance and expects revenues of between $120.7 million and $121.7 million, GAAP earnings per diluted share is expected to be at a range between $0.13 and $0.19 and non-GAAP earnings per diluted share, before all amortization expenses stock-based compensation expenses, and impairment of investment will be between $0.47 and $0.53.
For full 2008 amortization expenses are expected to be approximately $2.2 million and stock-based compensation expenses approximately $3.0 million. The Company’s guidance for the fourth quarter of 2008 and full-year 2008 does not include the impact of deferred taxes and also does not include the impact of any future impairment of intangible assets.
Some sad events in the period of the third quarter 2008:
– Excluding Accountis Fundtech closed 66 new deals and added 6 new bank customers,
– Fundtech also closed 9 new system sales including 4 US Payments, 1 Cash Management, 2 Global CASHplus and 2 at BBP,
– Financial expenses composed $500,000 due to a decline in the value of balances of cash and accounts receivables denominated in non-dollar currencies,
– Due to the previously reported impairment of a Lehman Brothers Bond the loss became $600,000.
Fundtechs board of directors approved a $10 million stock repurchase program pursuant to which the Company may repurchase shares of its ordinary shares from time to time in open market and privately negotiated transactions as market and business conditions warrant, subject to periodic review by the Board.
L.D.