DALLAS--(BUSINESS
WIRE)--March 16, 2004--Carreker
Corporation (Nasdaq:CANI),
a leading provider of payments
technology and consulting
solutions for the financial
services industry, today
reports its fourth quarter
and full year 2003 results.
For the fiscal year-ended
Jan. 31, 2004, the Company
reports revenues of $128.9
million, net income of
$3.7 million and diluted
earnings per share of $0.15.
($ in millions, except per share data)
Quarter Full Year
-------------------- ------------------
4Q 4Q
FY 2003 FY 2002 FY 2003 FY 2002
---------- --------- -------- ---------
Total revenue $33.1 $28.5 $128.9 $149.8
Operating income (loss) $1.1 $(53.0) $4.3 $(33.4)
Net income (loss) $1.4 $(52.2) $3.7 $(33.6)
Earnings (loss) per share,
basic $0.06 $(2.22) $0.16 $(1.45)
Earnings (loss) per share,
diluted $0.05 $(2.22) $0.15 $(1.45)
While
full year 2003 revenue
declined from its 2002
level, the Company was
able to achieve $4.3
million in operating
income. Though this figure
compares favorably to
the $(33.4) million operating
loss in 2002, it does
so primarily as a result
of a $46 million goodwill
impairment charge recorded
in 2002. Exclusive of
the charge in the prior
year, 2003 would have
reflected an $8.3 million
decrease in operating
income. This decline
primarily results from
a revenue shortfall in
the Company's global
payment technologies
and consulting segments.
The soft revenue in these
segments is expected
to continue into the
first half of 2004 due
to the impact of bank
consolidations and the
changing marketplace,
resulting from Check
21 legislation. In response
to the market demand
resulting from Check
21 legislation, the Company
is developing new products,
which are expected for
delivery in late 2004
and 2005.
From
a revenue and net income
perspective, the Company's
fiscal 2003 fourth quarter
results exceeded both
the fiscal 2003 third
quarter results and the
fourth quarter results
from fiscal 2002. In
particular, a strong
performance by the Company's
Revenue Enhancement consulting
group contributed to
the fourth quarter revenue
increase. Some of the
noteworthy highlights
from the fiscal 2003
fourth quarter follow:
Fourth
Quarter 2003 Highlights
- Increased
total revenue of $33.1
million from $28.5
million in the prior
year.
- Improved
gross margin of 53%
versus 37% in the prior
year.
- Paid
down $6.3 million of
long-term debt.
"We
are pleased that our
Q4 2003 revenue and net
income exceeded both
our Q3 2003 performance
and our Q4 performance
of 2002," said J.D. (Denny)
Carreker, Chairman and
Chief Executive Officer
of Carreker Corporation. "We
look forward to 2004,
as we continue to build
on the progress we have
made to date, particularly
in our leadership in
banking's response to
Check 21. As new market
developments continue
to unfold, we are positioning
ourselves to take advantage
of our technology footprint
and technology development
partnerships."
Carreker
continued, "The market
is taking note of our
thought leadership and
the groundwork we have
laid for optimizing the
impact of Check 21. American
Bankers Association and
other industry groups
are seeking our participation
and counsel on their
Check 21 initiatives
and we have just published
a case history on our
image work for the Federal
Reserve."
"As
we reflect on the past
and look to the future,
we consider 2003 as our
year of strategic repositioning,
2004 as our year of strategic
building out in preparation
for 2005, our year for
delivering," concluded
Carreker.
Conference
Call
Management
has scheduled a conference
call tomorrow, Wednesday,
March 17, 2004, at 11:00
a.m. Eastern Time. The
conference call is intended
to provide a forum for
a discussion of the Company's
fourth quarter and full
year fiscal 2003 financial
results, business conditions,
industry trends and other
points of interest to
investors. To join the
conference call, domestic
participants dial 800-289-0494,
international participants
dial 913-981-5520.
A
replay of the call will
be available on Wednesday,
March 17 from 2:00 p.m.
Eastern Time through
Wednesday, March 24 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 742757.
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,
continental Europe, Australia,
New Zealand, South Africa,
South America, Mexico,
and the Caribbean. 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,
since 1978, Carreker
Corporation has offices
in London and Sydney.
For more information,
visit www.carreker.com.
Forward
Looking Statements --
Except for historical
information, the statements
in this release, including
statements regarding
future financial performance,
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, 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
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
ASSETS
January 31,
-------------------
2004 2003
--------- ---------
Current assets
Cash and cash equivalents $28,605 $26,986
Accounts receivable, net of allowance of $1,512
and $1,761 at January 31, 2004 and January 31,
2003, respectively 21,751 22,759
Prepaid expenses and other current assets 3,331 3,380
--------- ---------
Total current assets 53,687 53,125
Property and equipment, net of accumulated
depreciation of $17,140 and $14,704 at January
31, 2004 and January 31, 2003, respectively 6,690 8,975
Capitalized software costs, net of accumulated
amortization of $11,050 and $10,025 at January
31, 2004 and January 31, 2003, respectively 2,028 2,010
Acquired developed technology, net of accumulated
amortization of $11,153 and $6,867 at January 31,
2004 and January 31, 2003, respectively 14,547 17,333
Goodwill, net of accumulated amortization of
$3,405 at January 31, 2004 and January 31, 2003 21,193 21,193
Customer relationships, net of accumulated
amortization of $3,733 and $2,333 at January 31,
2004 and January 31, 2003, respectively 4,667 6,067
Deferred loan costs, net of accumulated
amortization of $1,028 and $676 at January 31,
2004 and January 31, 2003, respectively 680 576
Other assets 873 829
--------- ---------
Total assets $104,365 $110,108
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $913 $725
Accrued compensation and benefits 9,219 7,603
Other accrued expenses 4,621 6,030
Income tax payable 80 --
Deferred revenue 25,231 17,600
Accrued merger and restructuring costs 1,898 3,735
--------- ---------
Total current liabilities 41,962 35,693
Long-term debt 6,250 25,000
Deferred revenue -- 817
Other long-term liabilities 49 --
--------- ---------
Total liabilities 48,261 61,510
Minority interest (214) --
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; 24,357 and 23,574 shares issued at
January 31, 2004 and January 31, 2003,
respectively 244 236
Additional paid-in capital 108,757 105,263
Accumulated deficit (52,680) (56,386)
Less treasury stock, at cost: 1 and 27 common
shares at January 31, 2004 and January 31,
2003, respectively (3) (515)
--------- ---------
Total stockholders' equity 56,318 48,598
--------- ---------
Total liabilities and stockholders' equity $104,365 $110,108
========= =========
CARREKER CORPORATION
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)
Three Months
Ended Year Ended
January 31, January 31,
----------------- ------------------
2004 2003 2004 2003
-------- -------- -------- ---------
Revenues:
Consulting fees $12,715 $8,527 $34,064 $39,204
Software license fees 5,410 5,516 27,365 37,946
Software maintenance fees 10,358 8,477 45,122 41,858
Software implementation fees 3,718 4,829 18,103 24,310
Out-of-pocket expense
reimbursements 887 1,102 4,254 6,458
-------- -------- -------- ---------
Total revenues 33,088 28,451 128,908 149,776
Cost of revenues:
Consulting fees 5,277 5,444 20,470 25,067
Software license fees 2,357 2,076 8,020 7,701
Write-off of capitalized
software costs and prepaid
software royalties -- 954 -- 954
Software maintenance fees 3,408 3,043 13,051 10,773
Software implementation fees 3,451 5,016 17,715 19,496
Out-of-pocket expenses 922 1,390 4,335 7,248
-------- -------- -------- ---------
Total cost of revenues 15,415 17,923 63,591 71,239
-------- -------- -------- ---------
Gross profit 17,673 10,528 65,317 78,537
Operating costs and expenses:
Selling, general and
administrative 13,634 12,349 50,568 50,326
Research and development 1,936 1,920 7,191 11,307
Amortization of goodwill and
intangible assets 350 350 1,400 1,400
Goodwill impairment -- 46,000 -- 46,000
Merger, restructuring and other
charges 668 2,945 1,901 2,945
-------- -------- -------- ---------
Total operating costs and
expenses 16,588 63,564 61,060 111,978
-------- -------- -------- ---------
Income (loss) from operations 1,085 (53,036) 4,257 (33,441)
Other income (expense):
Interest income 44 83 266 414
Interest expense (227) (497) (1,218) (2,583)
Other income (expense) 330 414 601 505
-------- --------- ------- ---------
Total other income (expense) 147 -- (351) (1,664)
-------- --------- ------- ---------
Income (loss) before provision
(benefit) for income taxes 1,232 (53,036) 3,906 (35,105)
Provision (benefit) for income
taxes (173) (809) 200 (1,475)
-------- --------- ------- ---------
Net income (loss) $1,405 $(52,227) $3,706 $(33,630)
======== ========= ======= =========
Basic earnings (loss) per share $0.06 $(2.22) $0.16 $(1.45)
======== ========= ======= =========
Diluted earnings (loss) per share $0.05 $(2.22) $0.15 $(1.45)
======== ========= ======= =========
Shares used in computing basic
earnings (loss) per share 24,036 23,547 23,736 23,198
======== ========= ======= =========
Shares used in computing diluted
earnings (loss) per share 25,979 23,547 24,384 23,198
======== ========= ======= =========
CONTACT: Carreker Corporation, Dallas
Lisa Peterson, 972-371-1454
Fax: 972-458-2567
lpeterson@carreker.com
SOURCE: Carreker Corporation
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