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Digital Insight Reports First Quarter Results

Friday 23 April 2004 11:12 CET | News

Digital Insight has reported record financial results for its first quarter ended March 31, 2004. Revenues for the first quarter ended March 31, 2004 increased 29% to $45.7 million from $35.5 million for the quarter ended March 31, 2003.

Revenues for the 2004 quarter include contributions from Magnet Communications Inc., which was acquired by Digital Insight during the fourth quarter of 2003. Under Generally Accepted Accounting Principles (GAAP), net income in the first quarter increased 46% to $4.2 million, or $0.11 per diluted share, from $2.9 million, or $0.09 per diluted share, in the first quarter of 2003. On a non-GAAP basis, excluding amortization of intangible assets from acquisitions, pro forma net income in the first quarter increased 28% to $5.4 million, or $0.15 per diluted share, from pro forma net income of $4.3 million, or $0.13 per share, in the first quarter of 2003. A reconciliation of non-GAAP pro forma results to GAAP results is provided as part of this press release. 2004 First Quarter Net Income and EPS Reflect Full 38% Tax Rate For The First Time As previously announced, throughout 2004 Digital Insight will record an effective tax rate of approximately 38% on its GAAP and non-GAAP pro forma income statements, which is significantly higher than the 10% tax rate applied to GAAP results in Q1 2003. The following table illustrates Digital Insight’s underlying growth in profitability including and excluding the provision for income taxes. (in thousands) Q1 2004 Q1 2003 Increase Revenues $ 45,679 $ 35,507 29% GAAP Pretax Income $ 6,717 $ 3,164 112% Provision for Income Taxes $ 2,560 $ 312 721% GAAP Net Income $ 4,157 $ 2,852 46% Cash Flow From Operations Remains Strong Cash flow from operations in the first quarter grew to $11.6 million from $2.4 million in the first quarter of 2003, reflecting the Company’s higher operating income in 2004 and the absence of a one-time litigation settlement that reduced cash flow in the first quarter of 2003. Operating cash flows continue to benefit from the Company’s ability to offset its cash tax liability by utilizing net operating loss carry forwards and research and development tax credits. The Company does not expect to incur significant cash tax payments prior to 2006. Balance Sheet Highlights At March 31, 2004, cash and investments increased to $81.8 million from $70.3 million at December 31, 2003, reflecting strong cash flow from operations. The Company remains debt-free.


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Categories: Banking & Fintech | Online & Mobile Banking
Countries: World
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Banking & Fintech