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Carreker
Corporation
Press Release
- June 6,
2005
Carreker Corporation Reports First Quarter Fiscal 2005 Results
DALLAS, June 7 /PRNewswire-FirstCall/ -- Carreker Corporation
(Nasdaq: CANI), a leading provider of payments technology and consulting
solutions for the financial services industry, today reported results for its
first quarter ended April 30, 2005.
Total revenue for the first quarter of 2005 was $28.2 million as compared
to revenue of $28.9 million in the fourth quarter of 2004. Operating income
for the first quarter of 2005 was $234,000 as compared to an operating loss of
$1.3 million in the fourth quarter of 2004. Net income for the first quarter
of 2005 was $498,000, or $0.02 per diluted share as compared to a net loss of
$1.1 million, or ($0.04) per diluted share, for the fourth quarter of 2004.
"While revenue was slightly lower than the fourth quarter of 2004, cost
management efforts helped improve margins thus resulting in profitability for
the quarter," said J. D. (Denny) Carreker, Chairman and Chief Executive
Officer of Carreker Corporation. "We are rolling out several new products
during the first half of the year and anticipate that as they gain momentum,
our revenue will strengthen. Our clients continue to benefit from our
commitment to research and development as these new products assist them with
their evolving needs in the converging payments landscape."
Business Outlook
The Company anticipates revenue growth in 2005 due to sales of new
products and increased consulting opportunities. The Company continues to
focus on cost management efforts to improve 2005 profitability and increase
shareholder value. Revenue and operating income for the second quarter of
2005 are expected to improve over first quarter 2005 levels.
Conference Call
Carreker's management will host a conference call and web cast today,
Tuesday, June 7, 2005, at 11:00 a.m. Eastern Time to discuss the Company's
first quarter fiscal year 2005 financial results and provide an overview of
business conditions, industry trends and other points of interest. To join
the conference call, Domestic participants dial 866-348-8664; International
participants dial 706-679-0430. All participants enter code 6073400.
Additionally, a live web cast of the conference call will be available through
the investor relations section of the Company's web site at
http://ir.carreker.com . A replay of the call will be available on Tuesday,
June 7 from 1:00 p.m. Eastern Time through 11:45 p.m. Friday, June 17, 2005.
To access the replay, Domestic participants dial 800-642-1687; International
participants dial 706-645-9291. All replay participants enter code 6073400.
An archived version of the web cast will be available through the investor
relations section of the Company's web site at http://ir.carreker.com .
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, Texas since 1978, Carreker Corporation has offices in London and
Sydney. For more information, visit http://www.carreker.com .
Forward Looking Statements -- Except for historical information, the
statements in this release, including statements regarding future financial
performance, constitute 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 customer acceptance of new product introductions, the
timing of revenue from contracted sales, the timing of expected sales of
products and 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, sales, potential sales and prices. For further
information concerning certain of these risks and uncertainties, see under the
caption "Business-Forward Looking Statements and Risk Factors" in the
Company's most recent Form 10-K for the year ended January 31, 2005. 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
April 30, January 31,
2005 2005
Current assets
Cash and cash equivalents $ 35,745 $ 34,516
Accounts receivable, net of allowance of $504
and $529 at April 30, 2005 and
January 31, 2005, respectively 10,736 11,144
Prepaid expenses and other current assets 3,216 2,595
Total current assets 49,697 48,255
Property and equipment, net of accumulated
depreciation of $20,785 and $20,194
at April 30, 2005 and January 31, 2005,
respectively 6,509 6,604
Capitalized software costs, net of accumulated
amortization of $12,692 and $12,426
at April 30, 2005 and January 31, 2005,
respectively 3,416 3,245
Acquired developed technology, net of
accumulated amortization of $16,928 and
$15,773 at April 30, 2005 and
January 31, 2005, respectively 8,772 9,927
Goodwill, net of accumulated amortization of
$3,405 at April 30, 2005 and January 31, 2005 20,765 20,765
Customer relationships, net of accumulated
amortization of $5,483 and $5,133
at April 30, 2005 and January 31, 2005,
respectively 2,917 3,267
Deferred loan costs, net of accumulated
amortization of $1,368 and $1,300 at
April 30, 2005 and January 31, 2005, respectively 340 407
Other assets 829 835
Total assets $ 93,245 $ 93,305
Current liabilities
Accounts payable $ 874 $ 992
Accrued compensation and benefits 5,953 7,818
Other accrued expenses 3,639 3,609
Income tax payable 350 339
Deferred revenue 23,981 22,181
Accrued merger and restructuring costs 561 1,004
Total current liabilities 35,358 35,943
Other long-term liabilities 196 ---
Total liabilities 35,554 35,943
Commitments and 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; 24,857 and 24,852
shares issued at April 30, 2005
and January 31, 2005, respectively 249 249
Additional paid-in capital 111,172 110,992
Accumulated deficit (53,378) (53,876)
Less treasury stock, at cost (352) (3)
Total stockholders' equity 57,691 57,362
Total liabilities and stockholders' equity $ 93,245 $ 93,305
CARREKER CORPORATION
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended
April 30,
2005 2004
Revenues:
Consulting fees $ 8,318 $ 9,057
Software license fees 3,359 5,856
Software maintenance fees 11,312 11,084
Software implementation fees 4,134 2,879
Outsourcing service fees 257 ---
Out-of-pocket expense reimbursements 818 890
Total revenues 28,198 29,766
Cost of revenues:
Consulting fees 4,241 4,529
Software license fees 1,536 1,598
Software maintenance fees 3,975 3,798
Software implementation fees 2,973 3,369
Outsourcing service fees 579 ---
Out-of-pocket expenses 790 943
Total cost of revenues 14,094 14,237
Gross profit 14,104 15,529
Operating costs and expenses:
Selling, general and administrative 10,904 12,192
Research and development 2,521 1,708
Amortization of customer relationships 350 350
Restructuring and other charges 95 2,515
Total operating costs and expenses 13,870 16,765
Income (loss) from operations 234 (1,236)
Other income (expense):
Interest income 144 48
Interest expense (105) (108)
Other income 306 484
Total other income (expense), net 345 424
Income (loss) before provision for income taxes 579 (812)
Provision for income taxes 81 ---
Net income (loss) $ 498 $ (812)
Basic earnings (loss) per share $ 0.02 $ (0.03)
Diluted earnings (loss) per share $ 0.02 $ (0.03)
Shares used in computing basic earnings
(loss) per share 24,425 24,376
Shares used in computing diluted earnings
(loss) per share 24,867 24,376
SOURCE:
Carreker Corporation
CONTACT:
Lisa Peterson,
Executive Vice President and CFO,
+1-972-371-1454,
or lpeterson@carreker.com ,
or
Gary Samberson,
SVP, Treasury,
Risk Management and Investor Relations,
+1-972-371-1590,
or
gsamberson@carreker.com ,
both of Carreker Corporation,
fax, +1-972-458-2567
Web site: http://www.carreker.com
http://ir.carreker.com
The information included in the webcasts, press and financial releases, and/or
any other document or event included in this section is provided as a service
to investors and other interested parties. These documents and events reflected
management's views as of those dates and are presented only for historical
background purposes and any projections or other forward-looking information
should not be relied upon for making investment decisions. While the company
believes that each of these documents and events were accurate, in all material
respects, at the time of their original publication, the Company does not
and specifically disclaims any duty to update, correct or otherwise modify
any of the information contained in these documents and events. As a result,
some of the information found on this section may be outdated. You should
consider only our most recent SEC filings as representative of our current
business expectations.
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