Transaction Systems Architects Reports Fiscal 2005 First Quarter Results

Net income for the quarter was $12.9 million, or $.34 per diluted share, compared to net income of $10.0 million, or $.27 per diluted share for the same period last year, increases of 28.7 percent and 25.9 percent, respectively. Net income and earnings per diluted share for the first quarter of fiscal 2005 included a $1.2 million foreign exchange loss compared with a $2.4 million foreign exchange gain during the same quarter last year. For the first quarter of fiscal 2005, revenues were comprised of software license fees of $47.8 million, maintenance fees of $22.1 million and services of $10.7 million. The Companys recurring revenue was $42.9 million, or 53 percent of total revenue, and non-recurring revenue was $37.7 million, or 47 percent of total revenue. Recurring revenue consisted of monthly license fees of $18.3 million, maintenance fees of $22.1 million and facilities management fees of $2.5 million. Operating income was $22.1 million, with an operating margin of 27.4 percent, compared to operating income of $15.5 million, with an operating margin of 21.0 percent, in the first quarter of fiscal 2004. Operating cash flow was $15.0 million compared to operating cash flow of $11.1 million in the first quarter of fiscal 2004, an increase of 35.3 percent. Cash, cash equivalents and marketable securities as of December 31, 2004 were $186.5 million. During the quarter, the Company added ten new customers while maintaining a worldwide presence in 76 countries. ACI Worldwide, the Companys largest business unit, added four new customers during the quarter. Solutions licensed included BASE24 and ACI Proactive Risk Manager. ACI Worldwide also licensed capacity upgrades to eleven customers and licensed eight new applications to existing customers during the first quarter. Insession Technologies, the Companys e-infrastructure business unit, added six new customers and licensed six new applications to existing customers during the quarter. IntraNet, the Companys corporate banking software provider, licensed one capacity upgrade, one new add-on module and signed 33 service contracts with its existing customers during the quarter. The Company completed the first quarter of fiscal 2005 with $230.4 million in backlog. Included in backlog are all software license fees, maintenance fees and services specified in executed contracts to the extent that the Company believes that recognition of the related revenue will occur within the next twelve months. Recurring backlog includes monthly license fees, maintenance fees and facilities management fees specified and amounted to $170.9 million. Non-recurring backlog includes other software license fees and services and amounted to $59.5 million. The Company has revised its revenue estimate for fiscal 2005 from a range of $279 million to $308 million to a range of $285 million to $308 million. The Company has revised its diluted EPS estimate from a range of $.79 to $.94 to a range of $.86 to $1.00, which excludes the effect of anticipated accounting rule changes related to expensing of equity-based compensation.