ATLANTA, Aug. 3 /PRNewswire-FirstCall/ -- CheckFree Corporation(Nasdaq: CKFR) today announced fourth quarter underlying revenue of $289.0million, representing a 28 percent increase over the same period last year,and GAAP (Generally Accepted Accounting Principles) revenue of $276.7million, representing a 23 percent increase from the fourth quarter lastyear. The Company's GAAP net income for the quarter was $27.9 million, or$0.31 per share, and underlying net income was $48.1 million, or $0.53 pershare. CheckFree reported GAAP consolidated revenue for fiscal 2007 of $972.6million, reflecting 11 percent growth over fiscal 2006, and underlyingrevenue of $996.0 million for fiscal 2007, reflecting 13 percent growthover the previous fiscal year. For the year, the Company's GAAP net incomewas $124.4 million, or $1.37 per share, and underlying net income was$172.3 million, or $1.90 per share. Free cash flow was $41.3 million forthe fourth quarter, and $183.9 million for the year as outlined inAttachment A. "Solid execution and good product strength provided CheckFree withresults just ahead of our expectations for the fourth quarter and theyear," said Pete Kight, CheckFree Chairman and Chief Executive Officer."The performance of our core business, and the integration of our newlyacquired operations, all ended the year on track or slightly ahead." GAAP Results: Net income for the fourth quarter was $27.9 million,compared to net income of $29.5 million for the same quarter last year.Earnings per share were $0.31 for the fourth quarter of fiscal 2007,compared to earnings per share of $0.31 for the fourth quarter of lastyear. For fiscal 2007, net income was $124.4 million, or $1.37 per share,compared to net income of $127.3 million, or $1.36 per share for fiscal2006. Net cash provided by operating activities was $67.5 million for thefourth quarter of fiscal 2007, compared to $40.8 million for the sameperiod last year. Net cash provided by operating activities was $238.7million for fiscal 2007, compared to $213.6 million for fiscal 2006. Underlying Results: Underlying net income for the fourth quarter was$48.1 million, compared to $36.6 million for the same quarter of last year.Underlying earnings per share were $0.53 for the fourth quarter of fiscal2007, compared to $0.39 for the fourth quarter of last year. For fiscal2007, underlying net income was $172.3 million, or $1.90 per share,compared to underlying net income of $160.9 million, or $1.72 per share,for fiscal 2006. Underlying revenue for fiscal 2007 excludes an $11.0 million charge forthe value of one million performance-based warrants earned by a customerand a $12.4 million deferred revenue adjustment related to acquisitions.Underlying net income and earnings per share for the fourth quarter excludethe above- described deferred revenue adjustment, the amortization ofacquisition-related intangible assets, acquisition-related integrationcosts, the SFAS 123(R) impact of stock options issued prior to July 1,2004, and the related combined tax benefits. In addition to theabove-described items, underlying net income and earnings per share for thefull year of fiscal 2007 excludes the charge for the value of the onemillion performance-based warrants earned by a customer in the thirdquarter of fiscal 2007, net of related income tax benefits. Underlying netincome and earnings per share for the fourth quarter and full year offiscal 2006 exclude the amortization of acquisition-related intangibleassets, the SFAS 123( R ) impact of options issued prior to July 1, 2004,and the related combined tax benefits. In addition, underlying net incomeand earnings per share for the full year of fiscal 2006 exclude thehistorical effect of discontinued operations on revenue and expense,resulting from a divestiture in the third quarter of fiscal 2006, net ofrelated income tax benefits. A reconciliation of CheckFree's quarterly andannual underlying results to its GAAP results is included in Attachment A. Fourth Quarter and Fiscal Year 2007 Highlights During the fourth quarter of fiscal 2007, CheckFree closed threeacquisitions. On April 2, CheckFree acquired Carreker Corporation, afinancial services software provider that is being integrated intoCheckFree's Software and Electronic Commerce businesses; and on May 15,CheckFree completed the acquisition of Corillian Corporation, a leadingprovider of electronic banking solutions that is being integrated into theCompany's Electronic Commerce business. On May 31, CheckFree acquiredUpstream Technologies, a provider of investment management solutions thatis being integrated into CheckFree Investment Services. On a combinedbasis, our three acquisitions exceeded expectations, helping fuel our overperformance for the quarter. For the fourth quarter, the Company reported that the ElectronicCommerce Division processed 343.6 million transactions, a 1 percentsequential increase over the third quarter of fiscal 2007. For fiscal 2007,1.3 billion transactions were processed, compared to 1.1 billiontransactions processed in the previous fiscal year, representing 16 percentannual growth. The Company delivered 60.5 million electronic bills duringthe fourth quarter, which reflects a 3 percent sequential quarterlyincrease. For fiscal 2007, CheckFree reported 225.8 million electronicbills, a 22 percent year-over-year increase. CheckFree Investment Services reported nearly 2.7 million portfoliosunder management, compared to nearly 2.3 million at the end of fiscal 2006,representing a 17 percent increase over the previous fiscal year. Refer toAttachment B for details on the financial performance of CheckFree'sdivisions in the fourth quarter of fiscal 2007, and Attachment C forelectronic billing and payment metrics. Financial Outlook for Fiscal 2008 and the First Quarter of Fiscal 2008 Given the merger with Fiserv, the Company announced that it will notprovide forward-looking financial expectations and will not be hosting anearnings conference call. About CheckFree (http://www.checkfreecorp.com) Founded in 1981, CheckFree Corporation (Nasdaq: CKFR) providesfinancial electronic commerce services and products to organizations aroundthe world. CheckFree Electronic Commerce solutions enable financialservices providers to offer the convenience of online banking, and alongwith billers, to offer the convenience of receiving and paying householdbills online, via phone or in person through retail outlets. CheckFreeInvestment Services provides a broad range of investment managementsolutions and outsourced services to hundreds of financial servicesorganizations, which manage about $1.8 trillion in assets. CheckFreeSoftware develops, markets and supports software applications that are usedby financial institutions to process more than two- thirds of the nearly 14billion Automated Clearing House transactions in the United States. Thedivision also provides financial institutions and other organizations withpayment processing and consulting, reconciliation and exception management,fraud and risk management, cash and logistics management, and compliancesoftware and services. Certain of the Company's statements in this press release are notpurely historical, and as such are "forward-looking statements" within themeaning of the Private Securities Litigation Reform Act of 1995. Theseinclude statements regarding management's intentions, plans, beliefs,expectations or projections of the future, and include statements regardingforecasts and expectations of ability to extend market share in eachbusiness category. Forward-looking statements involve risks anduncertainties, including without limitation, the various risks inherent inthe Company's business, and other risks and uncertainties detailed fromtime to time in the Company's periodic reports filed with the Securitiesand Exchange Commission, including the Company's Annual Report on Form 10-Kfor the year ended June 30, 2006 (filed September 8, 2006); QuarterlyReport on Form 10-Q for the quarter ended September 30, 2006 (filedNovember 8, 2006); Quarterly Report on Form 10-Q for the quarter endedDecember 31, 2006 (filed February 8, 2007); and Quarterly Report on Form10-Q for the quarter ended March 31, 2007 (filed May 10, 2007). One or moreof these factors have affected, and could in the future affect theCompany's business and financial results in future periods, and could causeactual results to differ materially from plans and projections. There canbe no assurance that the forward-looking statements made in this pressrelease will prove to be accurate, and issuance of such forward-lookingstatements should not be regarded as a representation by the Company, orany other person, that the objectives and plans of the Company will beachieved. All forward-looking statements made in this press release arebased on information presently available to management, and the Companyassumes no obligation to update any forward-looking statements. CHECKFREE CORPORATION AND SUBSIDIARIES Consolidated Condensed Statements of Operations (Unaudited) (In thousands, except per share data) Three Months Ended Year Ended June 30, June 30, 2007 2006 2007 2006 Revenues: Processing and servicing $214,246 $190,933 $809,814 $754,076 License fees 15,738 10,337 46,209 35,196 Maintenance fees 19,906 11,511 55,217 42,218 Professional fees 26,767 12,157 61,404 47,912 ` Total revenues 276,657 224,938 972,644 879,402 Expenses: Cost of processing, servicing and support 116,220 89,509 401,176 342,535 Research and development 33,146 28,989 112,077 101,854 Sales and marketing 31,829 26,146 98,459 87,418 General and administrative 24,899 13,171 79,057 61,948 Depreciation and amortization 26,308 21,781 90,937 99,530 Total expenses 232,402 179,596 781,706 693,285 Income from continuing operations 44,255 45,342 190,938 186,117 Equity in net income (loss) of joint venture 108 (653) (1,078) (3,100) Interest income, net 366 4,072 9,594 12,455 Income from continuing operations before income taxes 44,729 48,761 199,454 195,472 Income tax expense 16,805 19,275 75,016 74,455 Income from continuing operations 27,924 29,486 124,438 121,017 Income from discontinued operations before income taxes - - - 14,310 Income tax expense on discontinued operations - - - 8,064 Income from discontinued operations - - - 6,246 Net income $27,924 $29,486 $124,438 $127,263 Basic income per share: Income per share from continuing operations $0.32 $0.32 $1.41 $1.33 Income per share from discontinued operations $- $- $- $0.07 Total basic income per share $0.32 $0.32 $1.41 $1.40 Weighted average number of shares 87,855 91,287 88,313 90,984 Diluted income per share: Income per share from continuing operations $0.31 $0.31 $1.37 $1.29 Income per share from discontinued operations $- $- $- $0.07 Total diluted income per share $0.31 $0.31 $1.37 $1.36 Weighted average number of shares 90,481 94,232 90,896 93,708 CHECKFREE CORPORATION AND SUBSIDIARIES Consolidated Condensed Balance Sheets (Unaudited) (In thousands) June 30, June 30, 2007 2006 Current assets: Cash, cash equivalents and investments $195,127 $317,613 Settlement assets 127,661 107,128 Accounts receivable, net 221,320 146,605 Prepaid expenses and other assets 42,759 39,810 Deferred income taxes 10,189 7,311 Total current assets 597,056 618,467 Property and equipment, net 156,113 100,217 Capitalized software and intangible assets, net 1,253,047 906,767 Investments 47,390 78,559 Other noncurrent assets 11,426 8,779 Deferred income taxes 66,246 45,240 Total assets $2,131,278 $1,758,029 Current liabilities: Accounts payable, accrued liabilities and other $136,812 $91,333 Settlement obligations 123,302 103,732 Current portion of long-term obligations 206,022 767 Deferred revenue 79,391 40,301 Total current liabilities 545,527 236,133 Accrued rent and other 4,663 3,844 Deferred income taxes 2,284 2,964 Deferred revenue 3,281 3,021 Capital leases and long-term obligations, less current portion 68,021 28,432 Total stockholders' equity 1,507,502 1,483,635 Total liabilities and stockholders' equity $2,131,278 $1,758,029 Attachment A Calculation of Free Cash Flow (Unaudited) (In thousands) Three Months Ended Year Ended June 30, June 30, 2007 2006 2007 2006 Net cash provided by operating activities $67,547 $40,801 238,737 $213,602 Excluding: Net change in settlement accounts (2) 1,236 963 3,430 Less: Capital expenditures (35,257) (14,279) (76,140) (48,096) Impact of operating account conversion (9,443) - (9,443) - Plus: Data center reimbursements 18,444 2,046 29,739 2,046 Free cash flow $41,289 $29,804 $183,856 $170,982 Additional Information: Cash (used in)/provided by investing activities $(463,762) $(50,589) $(451,658) $(138,076) Cash (used in)/provided by financing activities $225,886 $(21,562) $95,184 $(3,971) Use of Non-GAAP Financial Information We supplement our reporting of cash flow information determined inaccordance with Generally Accepted Accounting Principles in the UnitedStates of America ("GAAP") by using "free cash flow" in this earningsrelease as a measure to evaluate our liquidity. We define free cash flow asnet cash provided by operating activities, exclusive of the net change insettlement accounts and less capital expenditures, plus data centerreimbursements. We believe free cash flow provides useful information tomanagement and investors in understanding our financial results andassessing our prospects for future performance. We also use free cash flowas a factor in determining long-term incentive compensation for seniormanagement. We exclude the net change in settlement accounts from free cash flowbecause we believe this facilitates management's and investors' ability toanalyze operating cash flow trends. In connection with our walk-in paymentbusiness, our consolidated balance sheet reflects settlement assets andsettlement obligations. The settlement assets represent payment receipts intransit to us from agents, and the settlement obligations representscheduled but unpaid payments due to billers. Balances in settlementaccounts fluctuate daily based on deposit timing and payment transactionvolume. These timing differences are not reflective of our liquidity, andthus, we exclude the net change in settlement accounts from free cash flow. As a technology company, we make significant capital expenditures inorder to update our technology and to remain competitive. Our free cashflow reflects the amount of cash we generated that remains, after we havemet those operational needs, for the evaluation and execution of strategicinitiatives such as acquisitions, stock and/or debt repurchases and otherinvesting and financing activities, including servicing additional debtobligations. During the fourth quarter of fiscal 2006, we entered into acredit facility to finance the construction of data centers. Amounts wespend to construct these data centers are included in our capitalexpenditures, but will be fully reimbursed by the credit facility. Thereimbursements from the credit facility are added to our free cash flowmeasure because these expenditures do not impact our overall liquidity. Thedata center reimbursements line represents a change to our definition offree cash flow as of the quarter ended June 30, 2006. We deducted the impact of an ongoing conversion of an operating bankaccount because we do not believe it should be included in thedetermination of free cash flow for the periods presented. This adjustmentrepresents outstanding checks against the account that we are in theprocess of closing. We are funding these checks as they clear from othersources of operating cash. We expect these outstanding checks to clear theaccount over the next 90 to 180 days at which time the account will beclosed. Free cash flow does not solely represent residual cash flow availablefor discretionary expenditures, as certain of our non-discretionaryobligations are also funded out of free cash flow. These consist primarilyof payments on capital leases and other long-term commitments, if any, asreflected in the table entitled "Contractual Obligations" in the "Liquidityand Capital Resources" section of "Management's Discussion and Analysis ofFinancial Condition and Results of Operations" contained in our AnnualReport on Form 10-K for the fiscal year ended June 30, 2006, which we filedwith the Securities and Exchange Commission on September 8, 2006. The Company's free cash flow should be considered in addition to, andnot as a substitute for, net cash provided by operating activities or anyother amount determined in accordance with GAAP. Further, CheckFree'smeasure of free cash flow may not be comparable to similarly titledmeasures reported by other companies. Attachment A (continued) Reconciliation of GAAP Net Income to Underlying Net Income and Earnings Per Share (Unaudited) (In thousands, except per share data) Three Months Ended Year Ended June 30, June 30, 2007 2006 2007 2006 Total revenues per GAAP $276,657 $224,938 $972,644 $879,402 Impact of warrants issued to a customer (1) - - 10,950 - Deferred revenue adjustment(2) 12,387 - 12,387 - Impact of discontinued operations (3) - - - 4,957 Total underlying revenues $289,044 $224,938 $995,981 $884,359 Net income per GAAP $27,924 $29,486 $124,438 $127,263 Impact of discontinued operations (3) - - - (6,246) Net income from continuing operations per GAAP 27,924 29,486 124,438 121,017 Amortization of acquisition- related intangible assets 13,435 10,586 44,691 57,037 SFAS 123(R) - Stock options issued before July 1, 2004 277 758 1,619 4,133 Impact of warrants issued to a customer (1) - - 10,950 - Deferred revenue adjustment(2) 12,387 - 12,387 - Integration costs associated with acquisitions 5,179 - 6,116 - Income from discontinued operations - - - 1,490 Tax benefit of underlying adjustments (11,123) (4,250) (27,914) (22,795) Underlying net income $48,079 $36,580 $172,287 $160,882 GAAP and underlying basic weighted average shares outstanding 87,855 91,287 88,313 90,984 GAAP and underlying impact of dilutive options and warrants 2,626 2,945 2,583 2,724 GAAP and underlying diluted weighted average shares outstanding 90,481 94,232 90,896 93,708 GAAP basic earnings per share $0.32 $0.32 $1.41 $1.40 GAAP diluted earnings per share $0.31 $0.31 $1.37 $1.36 Underlying basic earnings per share $0.55 $0.40 $1.95 $1.77 Underlying diluted earnings per share $0.53 $0.39 $1.90 $1.72 Use of Non-GAAP Financial Information We supplement our reporting of total revenues, income from operations,net income and earnings per share information determined in accordance withGAAP by using "underlying revenue," "underlying income from operations,""underlying net income " and "underlying earnings per share" in thisearnings release. Management believes that certain non-cash adjustments torevenues or expenses enhance our evaluation of our performance, and are notpertinent to day-to-day operational decision making in the business.Therefore, we exclude these items from GAAP revenue, income fromoperations, net income and earnings per share in calculating underlyingrevenue, underlying income from operations, underlying net income andunderlying earnings per share. Examples of such non-cash charges may include, but not be limited to,intangible asset amortization expense and in-process research anddevelopment costs associated with acquisitions, integration costsassociated with acquisitions, charges associated with the impairment ofintangible assets, the impact of discontinued operations, charges resultingfrom warrants issued to third parties, and charges associated withreorganization activities, all offset by the cumulative tax impact of thesecharges. We exclude these items in order to more clearly focus on thefactors we believe are pertinent to the daily management of our operations,and our management uses underlying results to evaluate the impact ofoperational business decisions. We regularly report underlying results toour Chairman and Chief Executive Officer, our chief operating decisionmaker, who uses this information in allocating resources to our variousbusiness units. Additionally, as we reward our management for theirdecisions that increase revenues underlying revenues, underlying net incomeand underlying earnings per share as factors in determining long-termincentive compensation for management. Because we utilize underlying financial results in the management ofour business and to determine incentive compensation for management, webelieve this supplemental information is useful to investors for theirindependent evaluation and understanding of the performance of ourmanagement and our core business performance. Our underlying revenues,underlying income from operations, underlying net income and underlyingearnings per share should be considered in addition to, and not as asubstitute for, revenues, income from operations, net income or earningsper share or any other amount determined in accordance with GAAP. Ourmeasures of underlying revenues, underlying income from operations,underlying net income and underlying earnings per share reflectmanagement's judgment of particular items, and may not be comparable tosimilarly titled measures reported by other companies. (1) See Page 10, footnote 4. (2) See Page 10, footnote 2. (3) See Page 10, footnote 3. Attachment A (continued) CHECKFREE CORPORATION AND SUBSIDIARIES Supplemental Underlying Consolidated Condensed Statements of Operations (Unaudited) (In thousands, except per share data) Three Months Ended Year Ended June 30, June 30, 2007 2006 2007 2006 Revenues: Processing and servicing $214,246 $190,933 $820,764 $758,796 License fees 17,822 10,337 48,293 35,196 Maintenance fees 24,797 11,511 60,108 42,244 Other 32,179 12,157 66,816 48,123 Total revenues 289,044 224,938 995,981 884,359 Expenses: Cost of processing, servicing and support 115,318 89,325 399,947 341,713 Research and development 31,842 28,766 110,378 102,002 Sales and marketing 30,407 26,016 96,806 87,177 General and administrative 23,071 12,950 75,903 61,708 Depreciation and amortization 12,873 11,195 46,246 42,982 Total expenses 213,511 168,252 729,280 635,582 Income from operations 75,533 56,686 266,701 248,777 Equity in net loss of joint venture 108 (653) (1,078) (3,100) Interest income, net 366 4,071 9,594 12,455 Income before income taxes 76,007 60,104 275,217 258,132 Income tax expense 27,928 23,524 102,930 97,250 Net income $48,079 $36,580 $172,287 $160,882 Basic income per share: Net income $0.55 $0.40 $1.95 $1.77 Weighted average number of shares 87,855 91,287 88,313 90,984 Diluted income per share: Net income $0.53 $0.39 $1.90 $1.72 Weighted average number of shares 90,481 94,232 90,896 93,708 Attachment B Reconciliation of GAAP Results to Underlying Results by Segment (Unaudited) (In thousands) Three Months Ended Year Ended June 30, June 30, 2007 2006 2007 2006 Electronic Commerce: Total revenues - GAAP $201,929 $166,541 $723,131 $662,728 Deferred revenue adjustment(2) 2,664 - $2,664 - Impact of warrants to a customer (4) - - 10,950 - Total revenues - underlying $204,593 $166,541 $736,745 $662,728 Operating income - GAAP $55,651 $46,051 $203,447 $195,847 Amortization of acquisition- related intangible assets 10,467 9,035 37,826 49,072 Impact of warrants to a customer (4) - - 10,950 - Deferred revenue adjustment(2) 2,664 - 2,664 - Integration costs related to acquisitions 2,522 - 2,557 - SFAS 123(R) - Stock options issued before July 1, 2004 (1) 201 550 1,177 2,999 Underlying operating income $71,505 $55,636 $258,621 $247,918 Investment Services: Total revenues - GAAP $34,027 $28,746 $124,029 $107,288 Impact of discontinued operations (3) - - - 4,957 Total revenues - underlying $34,027 $28,746 $124,029 $112,245 Operating income - GAAP $5,198 $3,652 $21,589 $13,939 Amortization of acquisition- related intangible assets 484 484 1,936 1,992 SFAS 123(R) - Stock options issued before July 1, 2004 (1) 29 78 167 425 Integration costs related to acquisitions 954 - 954 - Impact of discontinued operations (3) - - - 1,490 Underlying operating income $6,665 $4,214 $24,646 $17,846 Software: Total revenues - GAAP and underlying $40,701 $29,651 $125,484 $109,386 Deferred revenue adjustment(2) 9,723 - 9,723 - Total revenues - underlying $50,424 $29,651 $135,207 $109,386 Operating income - GAAP $(6,293) $3,788 $7,543 $14,701 Amortization of acquisition- related intangible assets 2,484 1,067 4,929 5,973 Deferred revenue adjustment(2) 9,723 - 9,723 - Integration costs related to acquisitions 1,703 - 2,605 - SFAS 123(R) - Stock options issued before July 1, 2004 (1) 12 34 71 184 Underlying operating income $7,629 $4,889 $24,871 $20,858 Corporate: Operating loss - GAAP $(10,301) $(8,146) $(41,641) $(38,370) SFAS 123(R) - Stock options issued before July 1, 2004 (1) 35 96 204 525 Underlying operating loss $(10,266) $(8,050) $(41,437) $(37,845) (1) At the beginning of fiscal 2005, we implemented a new long-term incentive compensation philosophy, which significantly reduced overall participation and focused on restricted stock with limited stock options. As a result, we recorded the cost of restricted stock throughout fiscal 2005 in both underlying and GAAP results. In fiscal 2006, we have adopted SFAS 123(R), and are consequently recording all long-term incentive grants, both restricted stock and options, as an expense to both underlying and GAAP results. The adjustment from GAAP to underlying operating results in the table above reflects the SFAS 123(R) charge associated with options granted prior to July 1, 2004 under our previous compensation philosophy, which were originally accounted for utilizing APB 25. (2) In connection with our preliminary purchase price allocations, we estimated the fair value of certain deferred revenue from license fees, support obligations and other customer payments assumed in connection with business acquisitions made during the three months ended June 30, 2007. Software licenses, license updates and product support revenue related to installations and support contracts assumed in business acquisitions in the amount of $12,387, that would have been otherwise recorded by the acquired entities, was not recognized as revenue by CheckFree during the three months ended June 30, 2007. As customers renew support contracts over the next year, we will recognize revenue for the full contract value over the support period. (3) In the third quarter ended March 31, 2006, the divestiture of our M- Solutions business, a component of our Investment Services segment, created a unique situation for our presentation of underlying results versus GAAP results. SFAS 144, "Accounting for the Impairment or Disposal of Long-Lived Assets," requires us to report the results of operations from the disposed business, including any gain or loss on the sale, as an income statement item separately captioned "earnings from discontinued operations" on our GAAP basis unaudited condensed Statements of Operations. This treatment is required for all periods presented, not just the period in which the sale took place. In contrast, for purposes of our underlying results, we have excluded the gain on disposition in the current periods, and included the results of the M-Solutions business for the periods of time that we owned the business and for all of the prior periods presented. (4) In the third quarter ended March 31, 2007, a bank customer vested in 1,000,000 warrants as a result of achieving certain milestones. These warrants provide the customer the opportunity to purchase shares of CheckFree Corporation at an exercise price of $32.50, and were valued at $10.95 per warrant based on a Black-Scholes valuation. Attachment C Electronic Billing and Payment Metrics (in millions, except revenue/transaction and percentages) Quarter Ended 06/30/2007 03/31/2007 12/31/2006 09/30/2006 06/30/2006 Transactions CSP: Revenue(1) $123.8 $122.5 $116.8 $114.2 $111.8 Revenue / Transaction $0.45 $0.45 $0.46 $0.48 $0.49 Transactions 275.3 269.6 251.5 235.7 227.5 Sequential Quarterly Growth 2% 7% 7% 4% 5% Non-CSP: Revenue $38.6 $39.6 $38.3 $36.2 $34.4 Revenue / Transaction $0.57 $0.56 $0.54 $0.48 $0.46 Transactions 68.3 71.2 70.5 76.0 74.7 Sequential Quarterly Growth -4% 1% -7% 2% -2% Total: Revenue $162.4 $162.1 $155.1 $150.4 $146.2 Transactions 343.6 340.9 322.0 311.7 302.2 Sequential Quarterly Growth 1% 6% 3% 3% 3% e-Bill Delivery Revenue $10.4 $9.8 $8.7 $8.5 $8.0 Revenue / e-Bill $0.17 $0.17 $0.16 $0.16 $0.16 e-Bills Delivered 60.5 58.6 54.9 51.8 50.0 Sequential Quarterly Growth 3% 7% 6% 3% 7% Other EC Revenue(2) $ 31.8 $ 12.8 $12.6 $12.1 $12.3 Other Performance Metrics Active Full Service Subscribers(3) 12.0 11.6 11.1 10.5 10.0 (1) CSP Revenue excludes the impact of warrants issued to a customer. (2) Other revenue includes Health and Fitness, Professional Services, Stored Value Products and Electronic Banking Software and Professional Services, excluding any purchase accounting deferred revenue adjustments. (3) "Active" refers to subscribers who have viewed or paid a bill in the last 90 days at a Consumer Service Provider that outsources essentially all of its electronic billing and payment (EBP) functions to CheckFree.
