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CyberSource Reports a Profitable Q4, Record Margins and Strong Revenue

Friday 23 January 2004 09:45 CET | News

CyberSource has reported financial results for its fourth quarter and fiscal year ended December 31, 2003. Total revenue for the fourth quarter was $7.7 million, exceeding prior guidance by $600,000.

This compares to $7.4 million in total revenue for the same period last year. Transaction and support services revenue was $6.1 million for the fourth quarter of 2003 as compared to $5.1 million for the fourth quarter of 2002, representing an increase of 18%. Enterprise software revenue and professional services revenue were each $800,000 for the fourth quarter of 2003 as compared to $1.4 million and $900,000, respectively, for the same period last year. Gross profit was $5.5 million in the fourth quarter as compared to $4.6 million in the fourth quarter of 2002. Gross margin rose to a record 71% in the fourth quarter, up from 63% in the fourth quarter of 2002. The net profit for the fourth quarter of 2003 was $56,000 or $0.00 per share as compared to a net loss of $3.6 million or ($0.11) per share for the same period last year. Operating expenses for the fourth quarter were $5.5 million as compared to $8.5 million in the same period last year. Included in operating expenses in 2003 was a restructuring charge of $300,000 due to unoccupied space primarily at its Mountain View facility. Included in operating expenses in 2002 was a restructuring charge of $2.4 million which was primarily due to unoccupied space and to a lesser degree included severance costs relating to a minor headcount reduction. For the year ended December 31, 2003, revenue was $27.5 million compared to $28.0 million for the prior year. Gross profit increased to $18.2 million in 2003 from $16.0 million in 2002. Gross margin increased to 66% for the year ended December 31, 2003, a significant increase as compared to the gross margin of 57% for the prior year. Operating expenses were $24.1 million in 2003 as compared to $29.6 million in the prior year. Operating expenses for the years ended December 31, 2003 and 2002 included restructuring charges of $0.5 million and $2.5 million, respectively. The net loss for 2003 decreased to $5.4 million or ($0.17) per share from a net loss of $12.5 million or ($0.38) per share for 2002. The Companys balance sheet is strong. As of December 31, 2003, the Company had over $44 million in cash, cash equivalents and short-term investments. The Company has no long-term debt. Selected noteworthy achievements for the quarter and year Transaction volume: -- CyberSource processed 85.8 million transactions in the fourth quarter of 2003, a 39% increase from the same quarter last year. Over the course of 2003, the Company processed 291.2 million transactions, a 36% increase from the year before. -- CyberSource processed $5.4 billion in credit card authorizations in the fourth quarter. This was a significant increase over the prior periods: $3.6 billion in Q3, $3.0 billion in Q2, and $2.6 billion in Q1. New customers/alliances: -- CyberSource signed 395 new customers in Q4. For the last four quarters, the total number of new customers signed was 1,394. -- A partial list of new customers includes AOL Web Properties, BBC Worldwide Ltd., Briggs and Stratton, British Airways, Columbia House, Harvard University, London Underground, Tessco Technologies, and Yahoo PayDirect. -- First Data: CyberSource and First Data announced a strategic partnership in August, 2003. The first phase of the agreement enables CyberSource merchants to offer First Datas TeleCheck Internet Check Acceptance service as a payment method. CyberSource now carries four eCheck services, all different, offering more options to more customers. -- PayPal: A strategic alliance between CyberSource and PayPal, enables CyberSource merchants to accept online payments from Paypals 31 million subscribers. CyberSource is the first payment solutions provider to make the cost-effectiveness and convenience of PayPal available to its customers. New products and services: -- Global Payment Suite -- a com


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Categories: Payments & Commerce | Payments General
Countries: World
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Payments & Commerce