Digital Insight Reports Record First Quarter Results

Wednesday 27 April 2005 10:27 CET | News

Digital Insight has reported revenues for the first quarter ended March 31, 2005 increased 13% to $51.7 million from $45.7 million for the quarter ended March 31, 2004.

The Companys GAAP (Generally Accepted Accounting Principles) net income in the first quarter increased 38% to $5.7 million, or $0.16 per diluted share, from $4.2 million, or $0.11 per diluted share, in the first quarter of 2004. Excluding amortization of intangible assets from acquisitions, non-GAAP net income in the first quarter increased 28% to $6.9 million, or $0.19 per diluted share, from non-GAAP net income of $5.4 million, or $0.15 per share, in the first quarter of 2004. A reconciliation of non-GAAP results to GAAP results is provided as part of this press release. Cash Flow From Operations and Balance Sheet Remain Strong Cash flow from operations in the first quarter of 2005 grew 38% to $16.0 million from $11.6 million in the first quarter of 2004, primarily reflecting the Companys higher operating income in 2005. Cash and investment balances at March 31, 2005 decreased to $112.5 million from $117.3 million at December 31, 2004 as cash flow from operations was offset by $21.2 million in share repurchases. The Company remains debt-free. New $25 Million Stock Repurchase Program Announced As announced in a separate press release today, the Companys Board of Directors has approved a new $25 million stock repurchase program. Digital Insights strong cash flow and balance sheet provide adequate financial flexibility to pursue strategic growth objectives and repurchase shares at attractive valuations in order to maximize shareholder returns. As previously announced, during the first quarter the Company completed its former $25 million stock repurchase program initiated during the fourth quarter ended December 31, 2004. The Company repurchased a total of approximately 1.5 million shares under its previous $25 million program, including 1,271,044 common shares during the first quarter at an average price of $16.64. Internet Banking revenues increased 18% versus the first quarter a year ago, driven primarily by strong growth in online bill payers and Internet banking end users. Business banking revenues increased 8% due to rapid growth in business end users of the Companys hosted product lines, and improving (on a sequential basis from the fourth quarter) results in the Companys business banking and professional services operations for larger banks. Lending revenues decreased 20% compared to a year ago primarily due to lower application volumes resulting from client attrition during 2004.

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