Transaction Systems Architects Reports Second Quarter Results

Net income increased 96.0 percent to $8.0 million, or $.21 per diluted share, compared to $4.1 million, or $.11 per diluted share, for the second quarter of fiscal 2003. For the second quarter of fiscal 2004, revenues were comprised of software license fees of $42.4 million, maintenance fees of $22.3 million and services fees of $11.8 million. The Companys recurring revenue was $46.8 million, or 61 percent of revenue, and non-recurring revenue was $29.7 million, or 39 percent of revenue. Recurring revenue consisted of monthly license fees of $22.2 million, maintenance fees of $22.3 million and facilities management fees of $2.3 million. Operating income was $14.1 million, with an operating margin of 18.4 percent, compared to operating income of $11.3 million in the second quarter of 2003, an increase of 24.7 percent. For the six months ended March 31, 2004, revenue totaled $150.5 million, compared to $131.7 million for the same six-month period in fiscal 2003, an increase of 14.3 percent. Operating income was $29.6 million for the first six months of the current year as compared to $18.8 million for the same period last year, an increase of 57.7 percent. Net income was $18.0 million, compared to $7.1 million, an increase of 155.0 percent over the first half of fiscal 2003. During the quarter, the Company added eighteen new customers and brought its worldwide presence to 76 countries. ACI Worldwide, the Companys largest business unit, added fourteen new customers during the quarter. Solutions licensed to these customers included BASE24, ACI Payments Manager, NET24-XPNET, ACI Smart Chip Manager and ACI Proactive Risk Manager. ACI Worldwide also licensed capacity upgrades to 17 customers and licensed 12 new applications to existing customers during the quarter, including a BASE24-es solution on the HP UX platform. Insession Technologies, the Companys e-infrastructure business unit, added four new customers and licensed four new applications to existing customers during the quarter. Solutions licensed include GoldenGate, AutoDBA, Automated Operator and WorkPoint. IntraNet, the Companys international payments and message processing solutions provider, licensed four new applications and entered into nineteen services contracts with existing customers during the quarter. The Company completed the second quarter of fiscal 2004 with $233.1 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 all monthly license fees, maintenance fees and facilities management fees and amounted to $170.8 million. Non-recurring backlog includes other software license fees and services and amounted to $62.3 million. The Company has revised its revenue estimate for fiscal 2004 from a range of $271 to $287 million to a range of $282 to $292 million. The Company has also revised its EPS estimate from a range of $.65 to $.77 to a range of $.74 to $.83.