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Carreker Corporation Reports Second
Quarter Fiscal 2005 Results
DALLAS, Sept. 8 /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 second
quarter ended July 31, 2005.
Total revenue for the second quarter
of 2005 was $29.9 million as compared
to revenue of $28.2 million in the
first quarter of 2005. Operating
income for the second quarter of
2005 was $968,000 as compared to
operating income of $234,000 for
the first quarter of 2005. Net income
for the second quarter of 2005 was
$1,054,000, or $0.04 per diluted
share, as compared to net income
of $498,000, or $0.02 per diluted
share, for the first quarter of 2005.
"We are pleased with the results
of the quarter in which we achieved
increases in revenue, operating and
net income as well as increases in
gross margins and operating margins," said
J. D. (Denny) Carreker, Chairman
and Chief Executive Officer of Carreker
Corporation. Mr. Carreker continued, "With
regard to our new product roll-out,
we are generally on schedule and
expect to see increased revenue generated
from these products in late 2005
and into 2006. Furthermore, we remain
committed to aggressively improving
our cost structure as evidenced by
the cost reductions that we initiated
in fiscal 2004 and the ongoing initiatives
in fiscal 2005."
Business Outlook
For the 2005 fiscal year, the Company
anticipates revenue to exceed 2004
fiscal year levels due to sales of
new products and an increase in consulting
opportunities. Revenue for the third
quarter is expected to be in line
with the second quarter. Operating
income is expected to decline due
to a third quarter change in revenue
mix associated with the timing of
certain RevE engagements and a restructuring
charge of $775,000, associated with
recent personnel reductions. The
reductions in personnel were implemented
in an effort to position the Global
Payments Technology business segment
for increased flexibility and improved
long-term profitability. For the
fourth quarter, the Company anticipates
revenue to increase over the prior
quarters in fiscal 2005 due primarily
to the recognition of revenue associated
with previous sales. Additionally,
the Company expects fourth quarter
operating income to increase over
the prior quarters in fiscal 2005
due to decreased costs associated
with the recent expense initiatives
as well as the anticipated fourth
quarter revenue increase.
Conference Call
Carreker's management will host
a conference call and live Web cast
today, Thursday, September 8, 2005,
at 11:00 a.m. Eastern Time to discuss
the Company's second 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 8998820. 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 Thursday, September 8 from 2:00
p.m. Eastern Time through 11:59 p.m.
Friday, September 16, 2005. To access
the replay, Domestic participants
dial 800-642-1687; International
participants dial 706-645-9291. All
replay participants enter code 8998820.
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
and subsequent quarterly reports
on From 10-Q. 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)
ASSETS
July 31, January 31,
2005 2005
Current assets
Cash and cash equivalents $21,749 $34,516
Marketable securities 4,600 ---
Accounts receivable, net of allowance of $447
and $529 at July 31, 2005 and
January 31, 2005, respectively 16,390 11,144
Prepaid expenses and other current assets 2,876 2,595
Total current assets 45,615 48,255
Property and equipment, net of accumulated
depreciation of $21,521 and $20,194 at
July 31, 2005 and January 31, 2005, respectively 6,292 6,604
Capitalized software costs, net of accumulated
amortization of $12,893 and $12,426 at
July 31, 2005 and January 31, 2005, respectively 3,486 3,245
Acquired developed technology, net of accumulated
amortization of $18,083 and $15,773 at
July 31, 2005 and January 31, 2005, respectively 7,617 9,927
Goodwill, net of accumulated amortization of
$3,405 at July 31, 2005 and January 31, 2005 20,765 20,765
Customer relationships, net of accumulated
amortization of $5,833 and $5,133 at
July 31, 2005 and January 31, 2005, respectively 2,567 3,267
Deferred loan costs, net of accumulated
amortization of $1,435 and $1,300 at
July 31, 2005 and January 31, 2005, respectively 272 407
Other assets 823 835
Total assets $87,437 $93,305
Current liabilities
Accounts payable $946 $992
Accrued compensation and benefits 5,968 7,818
Other accrued expenses 3,596 3,609
Income tax payable 75 339
Deferred revenue 20,361 22,181
Accrued merger and restructuring costs 275 1,004
Total current liabilities 31,221 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; 25,294 and 24,852
shares issued at July 31, 2005 and
January 31, 2005, respectively 253 249
Additional paid-in capital 111,512 110,992
Accumulated deficit (52,324) (53,876)
Less treasury stock, at cost (3,225) (3)
Total stockholders' equity 56,216 57,362
Total liabilities and stockholders' equity $87,437 $93,305
CARREKER CORPORATION
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended Six Months Ended
July 31, July 31,
2005 2004 2005 2004
Revenues:
Consulting $9,502 $10,514 $17,820 $19,571
Software license 3,782 4,577 7,141 10,433
Software maintenance 10,576 10,232 21,888 21,316
Software implementation
and other services 4,892 3,642 9,026 6,521
Outsourcing service 241 10 498 10
Out-of-pocket expense
reimbursements 927 662 1,745 1,552
Total revenues 29,920 29,637 58,118 59,403
Cost of revenues:
Consulting 4,277 5,082 8,518 9,611
Software license 1,828 1,670 3,364 3,268
Software maintenance 3,436 3,386 7,411 7,184
Software implementation
and other services 3,682 3,810 6,655 7,179
Outsourcing service 434 14 1,013 14
Out-of-pocket expenses 808 652 1,598 1,595
Total cost of revenues 14,465 14,614 28,559 28,851
Gross profit 15,455 15,023 29,559 30,552
Operating costs and expenses:
Selling, general and
administrative 11,593 11,971 22,497 24,163
Research and development 2,516 1,874 5,037 3,582
Amortization of customer
relationships 350 350 700 700
Restructuring and other
charges 28 197 123 2,712
Total operating costs
and expenses 14,487 14,392 28,357 31,157
Income (loss) from operations 968 631 1,202 (605)
Other income (expense):
Interest income 166 66 310 115
Interest expense (107) (121) (212) (230)
Other income (expense) 129 (27) 435 457
Total other income
(expense), net 188 (82) 533 342
Income (loss) before
provision for income taxes 1,156 549 1,735 (263)
Provision for income taxes 102 350 183 350
Net income (loss) $1,054 $199 $1,552 $(613)
Basic earnings (loss)
per share $0.04 $0.01 $0.06 $(0.03)
Diluted earnings (loss)
per share $0.04 $0.01 $0.06 $(0.03)
Shares used in computing
basic earnings (loss)
per share 24,127 24,671 24,326 24,524
Shares used in computing
diluted earnings (loss)
per share 24,421 25,481 24,703 24,524
SOURCE
Carreker Corporation
CONTACT: Lisa Peterson, Executive
Vice President and CFO, +1-972-371-1454,
or fax, +1-972-458-2567,
or lpeterson@carreker.com,
or Gary Samberson, SVP, Treasury,
Risk Management and Investor
Relations, +1-972-371-1590,
or fax, +1-972-458-2567,
or gsamberson@carreker.com
, both of Carreker Corporation |
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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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