Checkfree Announces Fiscal 2004 Second Quarter Results And Raises Fiscal

CheckFree Corporation has reported second quarter revenue of $149.9 million, representing 11 percent growth over the same period last year. The Companys GAAP (Generally Accepted Accounting Principles) net loss was $1.9 million or a loss per share of $0.02, and underlying net income was $23.4 million, or $0.25 per share. Free cash flow was $37.7 million for the quarter.GAAP Results: Net loss for the second quarter was $1.9 million, compared to $11.2 million for the same quarter last year. Loss per share was $0.02 for the second quarter of fiscal 2004, compared to a loss per share of $0.13 for the second quarter of last year. GAAP net cash provided by operating activities was $41.4 million for the second quarter of fiscal 2004, compared to $47.1 for the same period last year. Underlying Results: Underlying net income for the second quarter was $23.4 million, compared to $17.7 million for the same quarter of last year. Underlying earnings per share were $0.25 for the second quarter of fiscal 2004, compared to $0.20 for the second quarter of last year. Underlying net income and earnings per share exclude the amortization of acquisition-related intangible assets, write-off of in-process research and development costs, interest expense related to the call premium and write-off of unamortized issuance costs related to the redemption of our 6.5 percent convertible subordinated notes, a loss on investments, and related income tax benefits. Second Quarter Highlights The Company reported that its Electronic Commerce unit processed more than 139 million transactions for the quarter, a 10 percent increase over the previous quarter; delivered 18.5 million electronic bills, an increase of 26 percent over the previous quarter; and increased its electronic rate by two full percentage points to 78 percent. In its Investment Services unit, portfolios under management increased to about 1.4 million. In its Software business, CheckFree signed five financial services clients for its PEP+ reACH solution, which supports electronic check conversion for merchants of those banks. The Company also redeemed $172.5 million worth of convertible subordinated notes during the quarter and announced two new business opportunities -the acquisition of London-based HelioGraph Ltd., and an agreement to acquire American Payment Systems, Inc., a wholly owned subsidiary of UIL Holdings Corp., which is expected to close prior to the end of fiscal 2004.