News Column

ACI Worldwide, Inc. Reports Financial Results for the Quarter Ended June 30, 2014

August 14, 2014



By a News Reporter-Staff News Editor at Computer Weekly News -- ACI Worldwide (NASDAQ: ACIW), a leading global provider of electronic payment and banking solutions, announced financial results for the period ended June 30, 2014. Management will host a conference call at 8:30 am ET to discuss these results as well as 2014 guidance. Interested persons may access a real-time audio broadcast of the teleconference at www.aciworldwide.com/investors or use the following numbers for dial-in participation: US/Canada: (866) 914-7436, International/Local: +1 (817) 385-9117. Please provide your name, the conference name ACI Worldwide, Inc. and conference code 72317567. There will be a replay available for two weeks on (855) 859-2056 for US/Canada Dial-In and +1 (404) 537- 3406 for International/Local Dial-In participants.

"ACI had a strong second quarter, driven by continued market interest in our Universal Payments solutions and solid execution company wide," commented Phil Heasley, President and CEO, ACI Worldwide. "We expect the addition of Retail Decisions to continue this momentum and we remain optimistic regarding the remainder of 2014 and beyond." FINANCIAL SUMMARY Financial Results for Q2 Non-GAAP revenue in Q2 was $255 million, an increase of $47 million, or 23%, above the prior year quarter. Excluding the Official Payments contribution of $39 million, organic revenue grew 4%.

New sales bookings, net of term extensions (SNET) increased 16% compared to the prior year quarter, or 14% excluding the contribution from Official Payments. Our 12-month backlog increased by $2 million from last quarter to $885 million, while our 60-month backlog increased by $14 million from last quarter to $3.92 billion.

Non-GAAP operating income was $31 million for the quarter, versus $17 million in the prior year quarter. Adjusted EBITDA of $56 million grew 46%, or $18 million above last year's $38 million. Net EBITDA margin in Q2 2014 was 25% versus 19% margin last year, after adjusting for $34 million and $7 million of pass through interchange fees in Q2 2014 and Q2 2013, respectively.

Q2 GAAP net income was $11 million, or $0.10 per diluted share, versus net income of $2 million, or $0.02 per diluted share in Q2 2013. The variance was primarily driven by higher revenues and cost containment.

We ended the second quarter with $55 million in cash on hand. Operating free cash flow (OFCF) for the quarter was $28 million, up from $22 million in Q2 of last year. The quarter ended with a debt balance of $753 million, down from $779 million in Q1. Reiterating Guidance Excluding contribution from the pending acquisition of Retail Decisions (ReD), we continue to expect to generate non-GAAP revenue in a range of $1.06 to $1.08 billion for the full year. We expect non-GAAP revenue of $250 to $260 million in the third quarter. Adjusted EBITDA expectations remain in a range of $290 to $300 million. This guidance excludes approximately $15 million of significant integration-related expenses and includes $2 million for the deferred revenue adjustments. If closed in the middle of the third quarter, we expect the acquisition of ReD will generate approximately $18 million in revenue and $4 million in adjusted EBITDA for the remainder of 2014 and we will update our financial guidance upon closing. Lastly, our full year 2014 net new sales bookings growth is expected to be in the upper single digit range. About ACI Worldwide ACI Worldwide, the Universal Payments company, powers electronic payments and banking for more than 5,000 financial institutions, retailers, billers and processors around the world. ACI software processes $13 trillion in payments and securities transactions for more than 250 of the leading global retailers, and 21 of the world's 25 largest banks. Through our comprehensive suite of software products and hosted services, we deliver a broad range of solutions for payment processing; card and merchant management; online banking; mobile, branch and voice banking; fraud detection; trade finance; and electronic bill presentment and payment. To learn more about ACI, please visit www.aciworldwide.com. You can also find us on Twitter @ACI_Worldwide.

Keywords for this news article include: Software, ACI Worldwide.

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Source: Computer Weekly News


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