Fundtech Reports Financial Results for the First Quarter Of 2004

On a GAAP (Generally Accepted Accounting Principles) basis, net income for the first quarter of 2004 was $260,000, or $0.02 per diluted share, compared with net income of $675,000, or $0.04 per diluted share, for the fourth quarter of 2003 and a net loss of $(625,000), or $(0.04) per share, in the first quarter of 2003. Excluding amortization of intangibles and amortization of capitalized software costs, Fundtechs adjusted net profit for the first quarter of 2004 was $900,000, or $0.06 per diluted share, compared with $1,300,000, or $0.09 per diluted share, in the fourth quarter of 2003 and $4,000, or $0.00 per share, in the first quarter of 2003. (See Schedule A Attached to this Press Release -- Reconciliation to GAAP). Additional first quarter highlights: -- Closed two CLS system sales, to banks in South Africa and Asia. -- Closed 30 new deals and added 5 new customers. -- Closed four new system sales in the U.S.; two Global PAYplus, one PAYplus USA and one CASHplus. -- Received an order from Citibank to implement Global PAYplus in Japan. -- Topped 100 ASP customers worldwide. -- Upgraded 11 FEDplus customers to PAYplus USA. Guidance The financial guidance provided is current as of today only and the Company undertakes no obligation to update its estimates. For the second quarter of 2004, Fundtech expects revenues to be between $13.0 million to $13.5 million. In accordance with last quarters guidance, the Company expects total operating expenses to grow by approximately $500,000 in the second quarter and projects that GAAP earnings per diluted share, including all amortization expenses, will be in the range of $0.01 to $0.03. Excluding all amortization expenses, Fundtech expects adjusted earnings per diluted share to be in the range of $0.05 to $0.07. Amortization expenses for the second quarter are estimated to be approximately $629,000, or $0.04 per share. In light of the companys first quarter results and second quarter expectations, Fundtech is increasing the full-year 2004 financial guidance range. Fundtech now expects 2004 revenues to be between $53.5 million and $54.5 million, compared with prior guidance of $52.8 million to $54.3 million. GAAP earnings per diluted share is expected to be between $0.10 and $0.16 compared with prior guidance of $0.06 to $0.15. Earnings per diluted share, before all amortization expenses, is expected to be in the range of $0.26 to $0.32, compared with prior guidance of $0.22 to $0.31.