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CyberSource Posts Record Revenue

Saturday 17 July 2004 16:01 CET | News

CyberSource has reported financial results for its second quarter ended June 30, 2004. Total revenue for the second quarter was $8.6 million.

This compares to $6.5 million in total revenue for the same period last year, a 33% increase year-to-year. Transaction and support services revenue was $6.6 million, software revenue and professional services revenue were each $1.0 million. Gross profit was $6.0 million in the second quarter as compared to $4.1 million in the second quarter of 2003, an increase of 46%. Gross margin for the quarter was 70%, up from 64% in the same period last year. Net income for the second quarter of 2004 was $0.6 million or $0.02 per share as compared to a net loss of $2.0 million or ($0.06) per share for the same period last year. Operating expenses for the second quarter were $5.6 million as compared to $6.3 million in the same period last year. Cash, cash equivalents and short-term investments increased by $2.2 million during the quarter, from $45.2 million to $47.4 million as of June 30, 2004. The Company has no long-term debt. For the six-month period ended June 30, 2004, total gross revenue was $17.1 million as compared to $12.9 million for the six-month period ended June 30, 2003. The company recorded a net profit of $1.2 million or $0.03 per share for the six months ended June 30, 2004 as compared to a net loss of $4.1 million or ($0.13) per share for the same period last year. Selected noteworthy achievements during the quarter Transaction volume: - CyberSource processed 100 million transactions in the second quarter of 2004 as compared to 67.2 million processed in the same period last year, an increase of 49%. Customer growth: - CyberSource signed 648 new customers in the second quarter of 2004. - Existing customers that added new services or renewed agreements during the quarter include American Commercial (Mikasa), Carfax, Inc., Channel Wave, Inc., Columbia House Co., Holland-America Line-Westours, Jafra Cosmetics, Reed Business Information, and UCLA. Technology development: - CyberSource Decision Manager, launched in June, combines the industrys most powerful anti-fraud tool, CyberSource Advanced Fraud Screen enhanced by Visa, with a system that allows, for the first time, significant automation of the order review process. With this advanced tool, merchants should be able to convert more orders to sales, confidently review fewer orders, and more quickly manage orders set aside for review. - CyberSource introduced support for PIN-less debit transactions in June. PIN-less debit allows certain eligible merchants and institutions to accept ATM debit cards online without requiring the use of personal identification numbers. Eligible merchants may achieve considerable savings per transaction through this payment method. - CyberSource became the first service provider to certify to an enhanced American Express internet data specification. CyberSource customers can now be the first to avail themselves of newly provided fraud screening tools from American Express. - CyberSource continues to gain traction in the small business segment. The company already has 32 active resellers, and 5 more signed and preparing to go live.


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Categories: Payments & Commerce | Payments General
Countries: World
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