Carreker Corporation
Press Release - September 10,
2003
Carreker
Corporation Reports Second
Quarter Fiscal 2003 Results
Company
Returns to Profitability
DALLAS--(BUSINESS WIRE)--Sept.
10, 2003--Carreker Corporation
(Nasdaq:CANI), a leading provider
of payments technology and
consulting solutions for the
financial services industry,
today reports revenues of $36.2
million for the second quarter
ended July 31, 2003, compared
with $28.3 million in the first
quarter fiscal 2003 and $43.5
million in the second quarter
of fiscal 2002. The Company reports net income
of $3.9 million, or $0.17 per
share (basic and diluted),
for the second quarter fiscal
2003, which compares with a
net loss of $3.0 million, or
$0.13 per share (basic and
diluted), for the first quarter
fiscal 2003, and net income
of $7.9 million or $0.34 (basic)
and $0.33 per share (diluted)
in the year ago quarter. "Our strong second quarter
combines with a disappointing
first quarter to return us
to profitability for the six
months," said J.D. (Denny)
Carreker, Chairman and Chief
Executive Officer of Carreker
Corporation. "Our positive
cash flow for this period permitted
us to further reduce debt during
the quarter while maintaining
the strong cash balances and
adequate additional borrowing
capacity to allow us to continue
to invest in our future growth." Conference Call Management has scheduled
a conference call today, Wednesday,
September 10, 2003, at 5:00
p.m. Eastern Time. The conference
call is intended to provide
a forum for a discussion of
the Company's second quarter
fiscal 2003 financial results,
business conditions, industry
trends and other points of
interest to investors. To join
the conference call, domestic
participants dial 800-361-0912,
international participants
dial 913-981-5559. A replay
of the call will be available
on Wednesday, September 10
from 8:00 p.m. Eastern Time
through Tuesday, September
16 at 11:45 p.m. Eastern Time.
To access the replay, domestic
participants dial 888-203-1112,
international participants
dial 719-457-0820. All replay
participants enter the pass-code
488891. Webcast A live webcast of the conference
call, as well as the archive
webcast, will be available
through the investor relations
(IR) section of the Company's
website at http://ir.carreker.com.
The webcast will also be distributed
over Shareholder.com's Open
Distribution Network. About Carreker Corporation Carreker Corporation improves
earnings for financial institutions
around the world. The company's
integrated consulting and software
solutions are designed to increase
clients' revenues and reduce
their expenses, while improving
security and increasing the
value of their customer relationships.
Carreker provides products
and services to more than 250
clients in the United States,
Canada, the United Kingdom,
Ireland, Australia and South
Africa. Clients include the
full range of community, regional
and large banks, among them
more than 75 of the largest
100 banks in the United States.
Headquartered in Dallas, Texas,
since 1978, Carreker Corporation
also has offices located around
the world including London
and Sydney. For more information,
visit www.carreker.com. Forward Looking Statements
- Except for historical information,
the statements in this release
contain forward-looking statements
within the meaning of the federal
securities laws. These statements
are subject to numerous risks
and uncertainties that could
cause actual results to differ
materially, including but not
limited to the volatility in
the Company's common stock
price and litigation related
to the Company's restatement
of its financials, as well
as the risks and uncertainties
arising out of economic, competitive,
governmental and technological
factors affecting the Company's
operations, markets, services,
products and prices. For further
information concerning certain
of these risks and uncertainties,
see under the caption "Business
- Risk Factors" in the Company's
most recent Form 10-K for the
year ended January 31, 2003.
We assume no obligation to
update or revise any forward-looking
statements, whether as a result
of new information, future
events or otherwise, except
as may be required by law.
CARREKER CORPORATION
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands, except per share amounts)
ASSETS
July 31, January 31,
2003 2003
------------ -----------
Current assets
Cash and cash equivalents $ 27,460 $ 26,986
Accounts receivable, net of allowance of
$1,629 and $1,761 at July 31, 2003 and
January 31, 2003, respectively 17,065 22,759
Prepaid software royalties 364 763
Prepaid expenses and other current assets 2,561 3,073
------------ -----------
Total current assets 47,450 53,581
Property and equipment, net of accumulated
depreciation of $16,048 and $14,704 at
July 31, 2003 and January 31, 2003,
respectively 7,839 8,975
Capitalized software costs, net of
accumulated amortization of $10,571 and
$10,025 at July 31, 2003 and January 31,
2003, respectively 1,464 2,010
Acquired developed technology, net of
accumulated amortization of $8,927 and
$6,867 at July 31, 2003 and January 31,
2003, respectively 15,273 17,333
Goodwill, net of accumulated amortization of
$3,405 at July 31, 2003 and January 31, 2003 21,193 21,193
Customer relationships, net of accumulated
amortization of $3,033 and $2,333 at
July 31, 2003 and January 31, 2003,
respectively 5,367 6,067
Deferred loan costs, net of accumulated
amortization of $892 and $676 at
July 31, 2003 and January 31, 2003,
respectively 816 576
Other assets 420 373
------------ -----------
Total assets $ 99,822 $ 110,108
============ ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 509 $ 725
Accrued compensation and benefits 7,412 7,603
Other accrued expenses 4,422 6,030
Income tax payable 100 --
Deferred revenue 22,614 17,600
Accrued merger and restructuring costs 2,668 3,735
------------ -----------
Total current liabilities 37,725 35,693
Long-term debt 12,500 25,000
Deferred revenue -- 817
------------ -----------
Total liabilities 50,225 61,510
------------ -----------
Contingencies
Stockholders' equity
Preferred stock, $.01 par value:
2,000 shares authorized; no shares
issued or outstanding -- --
Common stock, $.01 par value:
100,000 shares authorized; 23,792 and
23,574 shares issued at July 31, 2003
and January 31, 2003, respectively 238 236
Additional paid-in capital 104,784 105,263
Accumulated deficit (55,422) (56,386)
Less treasury stock, at cost: 1 and 27
common shares at July 31, 2003 and
January 31, 2003, respectively (3) (515)
------------ -----------
Total stockholders' equity 49,597 48,598
------------ -----------
Total liabilities and stockholders' equity $ 99,822 $ 110,108
============ ===========
CARREKER CORPORATION
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended Six Months Ended
July 31, July 31,
------------------- ------------------
2003 2002 2003 2002
--------- --------- --------- --------
Revenues:
Consulting fees $ 8,202 $12,946 $14,953 $22,541
Software license fees 8,351 12,058 14,929 26,100
Software maintenance fees 14,284 11,090 22,994 21,757
Software implementation fees 4,508 5,695 9,402 12,892
Out-of-pocket expense
reimbursements 816 1,670 2,139 3,858
-------- -------- --------- --------
Total revenues 36,161 43,459 64,417 87,148
Cost of revenues:
Consulting fees 5,288 7,119 10,257 13,973
Software license fees 1,905 2,068 3,626 3,761
Software maintenance fees 3,070 2,475 6,186 5,244
Software implementation fees 5,027 4,691 9,850 9,829
Out-of-pocket expenses 1,038 1,939 2,291 4,276
-------- -------- --------- --------
Total cost of revenues 16,328 18,292 32,210 37,083
-------- --------- --------- --------
Gross profit 19,833 25,167 32,207 50,065
Operating costs and expenses:
Selling, general and
administrative 12,695 12,558 24,780 25,404
Research and development 1,716 3,175 3,522 6,161
Amortization of intangible
assets 350 350 700 700
Restructuring and other
charges 778 -- 1,462 --
-------- --------- --------- --------
Total operating costs and
expenses 15,539 16,083 30,464 32,265
-------- --------- --------- --------
Income from operations 4,294 9,084 1,743 17,800
Other income (expense):
Interest income 73 125 154 193
Interest expense (339) (696) (757) (1,481)
Other income (expense) 36 (49) 50 38
--------- --------- --------- --------
Total other income (expense) (230) (620) (553) (1,250)
--------- --------- --------- --------
Income before provision
(benefit) for income taxes 4,064 8,464 1,190 16,550
Provision (benefit) for income
taxes 133 547 226 (1,058)
--------- --------- --------- --------
Net income $ 3,931 $ 7,917 $ 964 $17,608
========= ========= ========= ========
Basic earnings per share $ 0.17 $ 0.34 $ 0.04 $ 0.77
========= ========= ========= ========
Diluted earnings per share $ 0.17 $ 0.33 $ 0.04 $ 0.75
========= ========= ========= ========
Shares used in computing basic
earnings per share 23,547 23,397 23,547 22,850
========= ========= ========= ========
Shares used in computing diluted
earnings per share 23,723 24,005 23,631 23,351
========= ========= ========= ========
CONTACT: Carreker Corporation, Dallas
Frank Tilley, 972-371-1454
Fax: 972-458-2567
ftilley@carreker.com
SOURCE: Carreker Corporation |
