Headlines:
Digital Insight Plans Buyback Program Earnings Up 212% At Online Resources S1 Corp. Names Stone Its New CFO
Digital Insight Plans Buyback Program
Digital Insight Corp., which reported that its fourth-quarter profits nearly doubled, said it plans to use some of the money to repurchase its stock.
The banking software provider said net income in the three months was $7.6 million, topping the year-earlier period by 96%. Revenue rose 16%, to $56.7 million.
The Calabasas, Calif., company said it is debt-free and that its balance sheet had $125 million of cash and investments at yearend. Its board has authorized a plan to purchase $50 million of its stock over the next 12 months. Last year Digital Insight completed two stock-buyback programs of $25 million each.
Digital Insight said its bank and credit union customers added a record 296,000 online banking users and 117,000 bill payment users in the quarter.
Revenue for 2005 rose 13.3%, to $213.9 million, and net income rose 58.7%, to $26.5 million. The results were announced Wednesday.
The company projects first-quarter revenue of $56.8 million to $57.1 million and diluted earnings per share of 15 to 19 cents. It reiterated its full-year guidance of $240 million to $243 million of revenue and earnings of 79 to 86 cents.
Jeff Stiefler, the chairman, president, and chief executive, said in a press release: "Our record growth in end users, continuing sales execution, and improving outlook for our underperforming businesses have me enthusiastic about Digital Insight's growth prospects in 2006. Our $50 million stock repurchase program demonstrates our confidence in the business and our commitment to utilize our strong cash flow to enhance shareholder value.
Earnings Up 212% At Online Resources
Online Resources Corp. said strong demand for its banking and bill payment software helped its fourth-quarter profit more than triple.
Earnings rose 212%, to $2.9 million, the company announced Tuesday. Revenue in the quarter rose 38%, to $15.8 million.
Revenue for the year rose 43%, to $60.5 million, and net income rose 131%, to $9 million.
However, Online Resources said its net income numbers were preliminary and may change after a tax analysis of operating losses the company has carried forward. That calculation is ongoing; Online Resources said it would probably revise its numbers, if necessary, before filing its 2005 annual report with the Securities and Exchange Commission.
Online Resources said that the number of people using its bill payment software through its bank and credit union customers rose 27% in 2005 and that the number using its banking software rose 32%. It did not say how many users it has.
The Chantilly, Va., company reaffirmed its guidance for first-quarter revenue ($16.5 million to $17 million) and net income ($1.3 million to $1.7 million). For the year it projects revenue of $72 million to $75 million and net income of $9.8 million to $10.8 million. (The net income forecasts do not take the ongoing tax analysis into account.)
S1 Corp. Names Stone Its New CFO
S1 Corp. has promoted John A. Stone from senior vice president of global finance to chief financial officer.
Mr. Stone, who had also previously been corporate controller, succeeds Matt Hale. Mr. Hale, who had been the Atlanta company's CFO for four years, was recently named president of S1's retail banking, wholesale banking, and insurance business units.
Mr. Stone has nearly 20 years of experience in corporate finance and accounting, including a stint as EarthLink Inc.'s corporate controller. His promotion was announced Wednesday.
