Second Quarter 2008 Brought Bottomline Technologies Revenue Of $34.3 Million

Bottomline Technologies, a provider of collaborative payment, invoice and document automation software, reports financial results for the second quarter ended 31 December 2008. Revenues for the second quarter were $34.3 million, an increase of $2.5 million from the second quarter

By None

Bottomline Technologies, a provider of collaborative payment, invoice and document automation software, reports financial results for the second quarter ended 31 December 2008.

Revenues for the second quarter were $34.3 million, an increase of $2.5 million from the second quarter of last year. Revenues for the second quarter were impacted by $3.3 million on a year over year basis as a result of declines in foreign exchange rates.

Gross margin for the second quarter was $19.0 million, an increase of $1.0 million from the second quarter of last year. Net loss for the second quarter was $2.9 million, or net loss per share of $0.12.

During the second quarter, operating expenses of $22.0 million included acquisition-related amortization of intangible assets of $3.9 million and stock-based compensation expense of $2.2 million. Excluding these acquisition-related and stock compensation items, non-GAAP net income for the second quarter was $3.3 million, or non-GAAP net income per share of $0.14.

Bottomline achieved positive strategic results during this period. Company signed a multi-year contract with Frank Winston Crum Insurance for Legal eXchange™, Bottomline’s Software as a Service (SaaS) solution for legal spend management.

Added significant new customers, including AGA Medical Corporation, Chicago Bridge & Iron, Dermalogica, Golden State Foods, Mouchel, Peet’s Coffee & Tea, Stryker Spine, Timberland, Wells Fargo Insurance Services, WestJet and a leading international hospitality company which selected Bottomline solutions to increase the security, efficiency, visibility and control of transactional processes.

Expanded existing deployments of Bottomline’s payments and document process automation applications at Acme Brick, AT&T Mobility, Edwards Lifesciences, Esurance, Calpine, Ingersoll Rand, Hays Specialist Recruitment, the Ministry of Justice, Mizuno, Nassau County (New York), Related Companies and SG Hambros.

Increased adoption of the company’s capabilities for document process automation within the global Microsoft Dynamics AX community with orders from companies such as CountryMark, Gundle/SLT Environmental and RMD Metal Products.

Broadened its presence in the healthcare vertical among hospitals and healthcare providers as Abington Memorial Hospital, Southside Regional Medical Center, West Jefferson Medical Center and Wishard Health Services extended their use of Bottomline’s payment and medical forms automation solutions.

Successfully completed of a SAS 70 audit for Legal eXchange, representing an independent, third-party expert validation of the internal and external controls established by the company to operate its legal spend management software.

“In the second quarter we recorded revenue of $34.3 million, which represents year over year growth of 18% on a consistent currency basis,” says Rob Eberle, president and CEO, Bottomline Technologies. “Our other financial metrics were also strong with EBITDA increasing 19% from last quarter, non-GAAP EPS of $0.14 and cash and investments of $34.8 million which is up $4.4 million from the prior quarter.”

“Of equal significance is order activity of $43.7 million in the quarter which evidences the continued broad-based demand for our offerings, and when combined with our significant backlog, positions us well for future success.”

L.D.

«