Bottomline Technologies Reports First Quarter Results

The net loss for the first quarter was $2.1 million, or a net loss per share of $0.13, compared with a net loss of $19.6 million and a net loss per share of $1.26 in the first quarter of last year. The results for the quarter ended September 30, 2002 included the cumulative effect of an accounting change in the amount of $13.8 million, which related to a goodwill impairment charge recorded by the company in connection with the transition to FASB Statement 142. The net loss before the cumulative effect of this accounting change was $5.9 million, or a net loss per share of $0.38. During the first quarter of 2004, operating expenses included net acquisition-related charges of $2.4 million, which represented our preliminary estimate of a charge for in-process research and development of approximately $789,000 associated with our acquisition of Create!form International, Inc., amortization of intangible assets of approximately $1.6 million and a stock compensation expense of $13,000 associated with stock options assumed in a prior acquisition. Excluding these acquisition-related items, pro forma net income for the first quarter was $268,000, or pro forma net income per share of $0.02, compared with a pro forma net loss per share of $0.23 in the first quarter of last year. Bottomline has presented non GAAP financial measures in the form of pro forma results as part of this earnings release since management believes it is a more accurate measurement of Bottomlines overall operating performance. Customer Highlights: -- The WebSeries FI platform was selected by a major UK-based financial institution representing the first European contract for this Bottomline technology. -- Leading global companies such as GMAC, Raytheon, Charles Schwab, Morgan Stanley Dean Witter and Experian chose Bottomline to deliver financial resource management solutions. -- Travelex Group, the global foreign exchange company, chose Bottomlines WebSeries foreign exchange platform to print foreign drafts for customers in local offices around the world and in 35 different currencies. -- National City Corporation (NCC), one of the largest banks in the US, has gone live with the first two phases of a multiple phase project. The solution provides NCCs wholesale banking customers web-based Check Management, Positive Pay and real-time Check Image Inquiry. -- Awarded a three-year contract by Laiki Bank Ltd to supply checks and other financial documents through an outsourced operation. Corporate and Product Highlights: -- Acquired Create!form International, Inc., a leading provider of electronic document management solutions. Create!forms products provide advanced electronic output and delivery capabilities to business enterprises to address a wide range of transactions, including purchase orders, invoices, payments and statements. Create!form was named earlier this month to the prestigious Technology Fast 500 Program, a ranking of the 500 fastest-growing technology companies in North America by Deloitte & Touche LLP. -- Announced the launch of Legal eXchange, an enhanced legal bill management service designed to reduce the time and resources required for corporate legal departments to receive, review and process invoices from outside counsel.