Fourth quarter revenue was a record $76.1 million, a 22% annual
increase; Billable transactions processed was a record 707 million,
a 29% annual increase. MOUNTAIN VIEW, Calif., Jan. 28
/PRNewswire-FirstCall/ -- CyberSource Corporation (NASDAQ:CYBS), a
leading provider of electronic payment and risk management
solutions, today announced financial results for its fourth quarter
ended December 31, 2009. (Logo:
http://www.newscom.com/cgi-bin/prnh/19990513/CYBRSOURCELOGO) --
Fourth quarter revenue was $76.1 million, a 22% increase compared
to $62.3 million in the same period the previous year. -- On a GAAP
basis, net income for the fourth quarter of 2009 was $5.1 million
and earnings per share was $0.07, compared to net income of $10.0
million and earnings per share of $0.14 in the fourth quarter of
2008. -- Non-GAAP net income for the fourth quarter was $17.2
million, a 27% increase compared to $13.6 million for the fourth
quarter of 2008. Non-GAAP earnings per share for the fourth quarter
was $0.24, a 26% increase compared to earnings per share of $0.19
for the fourth quarter of 2008. Non-GAAP net income excludes
stock-based compensation expense, a reduction in the valuation
allowance against deferred tax assets, the non-cash portion of the
tax provision, depreciation and amortization expense, and certain
non-recurring items. A reconciliation of certain GAAP to non-GAAP
measures is attached. -- During the fourth quarter, CyberSource
processed a record 707 million billable transactions, a 29%
increase over the same period the previous year. The value of
transactions processed was approximately $35.1 billion, a 25%
increase over the fourth quarter 2008. -- CyberSource signed 33,400
new customers in the quarter, up 20% over the prior year,
increasing its customer base to approximately 295,000 active
customers. "2009 was another year of exceptional performance for
CyberSource. Our business is expanding to a broader range of
customers around the world, and we continue to innovate and expand
our product offering. We added 11,600 net new customers in Q4 2009,
a 56% increase over Q4 2008, bringing the total net new customers
for the year to 40,000, which is 67% more than 2008. We also saw
strong overall sales growth on both our small business and
enterprise platforms," said Michael Walsh, President and Chief
Executive Officer of CyberSource. "Our transaction volumes grew 29%
over the prior year to a record 707 million transactions, and this
quarter we signed 33,400 new customers, 20% more customers than we
added a year ago. Global acquiring revenue for the quarter grew 16%
year over year. What we accomplished in 2009 would be impressive
under normal economic conditions, but it is even more impressive
given the global economic conditions. I believe that this
demonstrates three things: (1) e-commerce is still nascent and will
continue to grow; (2) more businesses are seeking global payment
solutions that will help grow their addressable markets; and, (3)
CyberSource is well-positioned to capitalize on these trends with
our proven business model to simplify e-commerce, our unique
service offerings, unparalleled systems reliability, and
award-winning customer support. I look forward to building on this
momentum to achieve even greater success in 2010." Business
Highlights -- Customers: CyberSource added approximately 33,400 new
customers in the quarter, bringing its customer base to
approximately 295,000. New enterprise customer wins this quarter
include: Citi Bank NA's London branch, GE Healthcare IT, Korean
Air, and National Express. Existing customers that added new
services or renewed agreements during the quarter include: Agilent
Technologies, Franklin Covey Company, Kodak Imaging Network,
K-Swiss Shoes, Lenovo Group, Match.com, Reed Business Information,
and Times Publishing. -- Channel Partners: In the fourth quarter,
CyberSource signed over 800 new Independent Sales Organizations and
affiliate partners. CyberSource's partner program of approximately
4,700 active resellers and affiliate partners continues to be a
major driver for new customer leads and is an increasingly broad
base of partners selling CyberSource services. -- International:
CyberSource continues to drive strong growth outside the U.S.
CyberSource's European operations processed a record 182.8 million
transactions in the fourth quarter, an increase of 43% over the
same period last year. The Company's European business is comprised
of revenue generated by customers domiciled outside the US and
represented about 8% of revenue in the quarter. -- European
acquiring sponsorship: CyberSource recently signed an agreement
with a member bank in Europe to enhance its acquiring offerings in
Europe. More details, such as the scope of geographies within
Europe where the services will be offered, the commencement date,
and the identities of the parties will be provided as we near the
launch date of the services. -- Global acquiring: CyberSource
generated $25.1 million of global acquiring revenue during the
fourth quarter, up 23% sequentially and 16% over the prior year.
CyberSource added approximately 1,000 new acquiring customers
during the quarter, and now has approximately 6,600 global
acquiring customers. Annual financial highlights For the year ended
December 31, 2009, total revenue was $265.1 million compared to
$229.0 million for the prior year, an increase of 16%. In 2009, we
processed 2.5 billion billable transactions, a 28% increase over
the 1.9 billion billable transactions processed in the prior year.
The value of transactions processed was $120 billion in 2009
compared to $109 billion in 2008, an increase of 10%. On a GAAP
basis, net income for the year ended December 31, 2009 was $11.0
million and earnings per share was $0.15 compared to $10.7 million
and $0.15 in the prior year. Non-GAAP net income was $58.3 million
and earnings per share was $0.81 for the year ended December 31,
2009 compared to $48.1 million and $0.67 per share in the prior
year, both increases of 21%. The Company also signed approximately
138,000 new customers in 2009 a 30% increase over the 106,000
signed in 2008. Stock Buyback During the fourth quarter, we did not
repurchase any shares of our common stock. Guidance for the first
quarter and full year 2010 CyberSource is providing guidance for
the first quarter of 2010 and the full year 2010 based on
information available as of January 28, 2010. We assume no duty to
update these numbers at any time. For the first quarter ending
March 31, 2010: -- Total revenue is expected to be between $73.5
and $74.0 million. -- The company expects to process between 675
and 685 million billable transactions. -- GAAP gross profit is
expected to be between $36.7 and $37.0 million, while GAAP
operating expenses are expected to be between $32.7 and $33.0
million. The company expects to record GAAP net income in the first
quarter of between $2.3 and $2.6 million and earnings per share of
approximately $0.03 based on a weighted average share count of 73.5
million shares. -- Non-GAAP net income for the first quarter is
expected to be between $14.1 and $14.4 million and non-GAAP
earnings per share to be between $0.19 and $0.20 based on a
weighted average share count of 73.5 million shares. For the full
year 2010: -- Total revenue for 2010 is expected to be between
$310.0 and $315.0 million. -- Total GAAP gross profit for 2010 is
expected to be between $160.0 and $162.0 million. -- Total GAAP
operating expenses for 2010 is expected to be between $136.0 and
$138.0 million. -- GAAP net income for 2010 is expected to be
between $14.5 and $15.0 million. -- GAAP earnings per share is
expected to be between $0.19 and $0.20 per share, based on a
weighted average share count of 74.5 million shares. -- Non-GAAP
net income for the full year 2010 is expected to be between $66.0
and $67.5 million. Non-GAAP earnings per share is expected to be
between $0.89 and $0.91, based on a weighted average share count of
74.5 million shares. Public call/web cast details CyberSource will
host a public conference call today, January 28, 2010 at 4:30 p.m.
Eastern time (1:30 p.m. Pacific time) to discuss the fourth quarter
results. The call can be accessed in either of the following ways:
Live conference call 888-585-4496 (U.S. and Canada), 706-634-9580
(local and international). The call's conference ID number is:
40189948. A taped replay of this call will be available through
March 31, 2010. The dial-in numbers for the taped replay are:
800-642-1687 (U.S.) 706-645-9291 (local and international).
Conference ID is as above. Live web cast
http://ir.cybersource.com/events.cfm A replay of this web cast will
remain available at this location through March 31, 2010. About
CyberSource CyberSource Corporation is a leading provider of
electronic payment and risk management solutions. CyberSource
solutions enable electronic payment processing for Web, call
center, and POS environments. CyberSource also offers industry
leading risk management solutions for merchants accepting
card-not-present transactions. CyberSource Professional Services
designs, integrates, and optimizes commerce transaction processing
systems. Approximately 295,000 businesses use CyberSource
solutions, including half the companies comprising the Dow Jones
Industrial Average. The company is headquartered in Mountain View,
California, and has sales and service offices in Japan, the United
Kingdom, and other locations in the United States including
Bellevue, Washington and American Fork, Utah. For more information
on CyberSource please visit http://www.cybersource.com/ or email .
For more information on Authorize.Net small business solutions,
please visit http://www.authorize.net/ or email . GAAP versus
non-GAAP Results and Guidance In addition to financial results
presented on a GAAP basis, the company has provided non-GAAP
measures of gross profit, operating expenses, net income and
earnings per share, which are adjusted to exclude certain non-cash
items. For purposes of this release, non-GAAP gross profit,
operating expenses, net income and earnings per share exclude stock
based compensation expense under SFAS 123R, a reduction in the
valuation allowance against deferred tax assets, the non-cash
portion of the income tax provision, depreciation and amortization
expense, and certain non-recurring items. A reconciliation of these
historical GAAP to non-GAAP measures is attached with the financial
statements. The company believes that presentation of non-GAAP
financial measures may provide investors with additional meaningful
and relevant financial information. Management believes the
non-GAAP measures help indicate trends in the company's business,
and management uses the non-GAAP measures to plan and forecast
future periods. Non-GAAP information is not determined using GAAP
and should not be considered superior to or as a substitute for
GAAP measures or data prepared in accordance with GAAP.
Furthermore, non-GAAP information may not be comparable across
companies, as other companies may use different non-GAAP measures.
The company does not provide guidance for certain financial
measures such as depreciation and stock-based compensation expense,
and, as a result, is not able to provide a reconciliation of GAAP
and non-GAAP financial measures for forward-looking data. The
company intends to calculate the various non-GAAP financial
measures in future periods consistent with the methodology used in
the three months ended December 31, 2009, as presented in this
release. Cautionary Statement under the Private Securities
Litigation Reform Act of 1995 Statements in this release that are
not purely historical are forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements include, without limitation, statements
regarding expectations, objectives, anticipations, plans, hopes,
beliefs, intentions or strategies regarding the future.
Forward-looking statements in this release include, without
limitation, statements regarding: (1) 2009 being another year of
exceptional performance; (2) business expanding to a broader range
of customers around the world; (3) strength of overall growth in
sales; (4) accomplishments of 2009 being impressive; (5) e-commerce
being nascent and continuing to grow; (6) more businesses looking
for global payment solutions to grow their addressable markets; (7)
the company being well-positioned to take advantage of trends in
the industry; (8) achieving more in 2010; (9) the company
continuing to drive strong growth outside the U.S.; (10) launching
acquiring services in Europe; (11) resellers and partners
continuing to be a major driver for new customer leads; and, (12)
financial guidance including, without limitation, those regarding
revenue, transaction volume, gross profit, operating expenses, net
income, and earnings per share. There is no assurance that any
forward-looking statement will be realized. Achievement of future
results is subject to risks, uncertainties, and potentially
inaccurate assumptions. These risks and uncertainties include,
among others, those discussed under "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" in CyberSource's most recent Annual Report
on Form 10-K, filed on February 27, 2009, and subsequent Quarterly
Reports on Form 10-Q as well as the consolidated financial
statements, related Notes, and the other financial information
appearing elsewhere in those reports and other CyberSource filings
with the Securities and Exchange Commission. The factors that could
cause actual results to differ materially from the forward-looking
statements include risks and uncertainties such as: changes in
Generally Accepted Accounting Principles and the application
thereof; changes in customer needs; the risks of failures,
disruptions or illiquidity in national and global banking, credit,
and financial systems and the impact of those risks on
CyberSource's business; the risk of the economy, in general, and
online economy, in particular, slowing down; security breaches; new
products and services offerings by CyberSource and its competitors;
and any unforeseen system failures. Should known or unknown risks
or uncertainties materialize, or should underlying assumptions
prove inaccurate, actual results could differ materially from past
results and those anticipated, estimated or projected. Readers
should bear this in mind when considering forward-looking
statements. CyberSource undertakes no obligation to publicly update
forward-looking statements, whether as a result of new information,
future events, or otherwise. © 2010 CyberSource Corporation. All
rights reserved. CyberSource is a registered trademark in the U.S.
and other countries. All other brands and product names are
trademarks or registered trademarks of their respective companies.
CyberSource Corporation GAAP Condensed Consolidated Statements of
Income (In thousands, except per share data) (Unaudited) Three
Months Ended Year Ended December 31, December 31, ------------
------------ 2009 2008 2009 2008 ---- ---- ---- ---- Revenues
$76,094 $62,254 $265,136 $229,026 Cost of revenues 37,009 30,263
125,064 111,768 ------ ------ ------- ------- Gross profit 39,085
31,991 140,072 117,258 Operating expenses: Product development
8,031 5,967 28,504 22,903 Sales and marketing 18,477 17,401 71,706
68,424 General and administrative 4,937 7,385 23,884 25,133 -----
----- ------ ------ Total operating expenses 31,445 30,753 124,094
116,460 ------ ------ ------- ------- Income from operations 7,640
1,238 15,978 798 Other income (loss), net (61) 750 208 1,134
Interest income 21 340 257 1,444 -- --- --- ----- Income before
income taxes 7,600 2,328 16,443 3,376 Income tax provision
(benefit) 2,520 (7,706) 5,478 (7,353) ----- ------ ----- ------ Net
income $5,080 $10,034 $10,965 $10,729 ====== ======= =======
======= Basic net income per share $0.07 $0.15 $0.16 $0.16 =====
===== ===== ===== Diluted net income per share $0.07 $0.14 $0.15
$0.15 ===== ===== ===== ===== Weighted average number of shares
used in computing basic net income per share 70,195 69,058 69,530
69,132 ====== ====== ====== ====== Weighted average number of
shares used in computing diluted net income per share 72,967 70,171
71,945 71,789 ====== ====== ====== ====== Non-GAAP Financial
Metrics: Gross profit $42,869 $35,088 $153,824 $129,175 Operating
expenses $25,300 $22,154 $93,402 $82,939 Net income $17,153 $13,559
$58,341 $48,077 Basic net income per share $0.24 $0.20 $0.84 $0.70
Diluted net income per share $0.24 $0.19 $0.81 $0.67 CyberSource
Corporation Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share data) (Unaudited) Three Months
Ended Year Ended December 31, December 31, ------------
------------ 2009 2008 2009 2008 ---- ---- ---- ---- GAAP gross
profit $39,085 $31,991 $140,072 $117,258 Add FAS123R expense 482
387 1,839 1,562 Add depreciation expense 1,945 1,261 6,485 4,556
Add amortization of intangible assets 1,357 1,449 5,428 5,799 -----
----- ----- ----- Non-GAAP gross profit $42,869 $35,088 $153,824
$129,175 ======= ======= ======== ======== GAAP operating expenses
$31,445 $30,753 $124,094 $116,460 Add (less) FAS123R benefit
(expense) 134 (1,943) (6,089) (7,938) Less depreciation expense
(728) (447) (2,270) (1,749) Less amortization of intangible assets
(4,952) (5,719) (20,802) (22,874) Less restructuring charges (599)
(490) (1,531) (960) ---- ---- ------ ---- Non-GAAP operating
expenses $25,300 $22,154 $93,402 $82,939 ======= ======= =======
======= GAAP net income $5,080 $10,034 $10,965 $10,729 Add FAS123R
expense 348 2,330 7,928 9,500 Add depreciation expense 2,673 1,708
8,755 6,305 Add amortization of intangible assets 6,309 7,168
26,230 28,673 Add restructuring charges 599 490 1,531 960 Add
(less) non-cash taxes and reversal of valuation allowance 2,144
(8,171) 3,178 (8,090) Less settlement proceeds* - - (246) - - -
---- - Non-GAAP net income $17,153 $13,559 $58,341 $48,077 =======
======= ======= ======= GAAP basic net income per share $0.07 $0.15
$0.16 $0.16 Add FAS123R expense - 0.04 0.11 0.15 Add depreciation
expense 0.04 0.02 0.12 0.09 Add amortization of intangible assets
0.09 0.10 0.38 0.41 Add restructuring charges 0.01 0.01 0.02 0.01
Add (less) non-cash taxes and reversal of valuation allowance 0.03
(0.12) 0.05 (0.12) ---- ----- ---- ----- Non-GAAP basic net income
per share $0.24 $0.20 $0.84 $0.70 ===== ===== ===== ===== GAAP
diluted net income per share $0.07 $0.14 $0.15 $0.15 Add FAS123R
expense - 0.04 0.11 0.13 Add depreciation expense 0.04 0.02 0.12
0.09 Add amortization of intangible assets 0.09 0.10 0.37 0.40 Add
restructuring charge 0.01 0.01 0.02 0.01 Add (less) non-cash taxes
and reversal of valuation allowance 0.03 (0.12) 0.04 (0.11) ----
----- ---- ----- Non-GAAP diluted net income per share $0.24 $0.19
$0.81 $0.67 ===== ===== ===== ===== *In May 2009, CyberSource
received approximately $246,000 as consideration for dismissing a
lawsuit that CyberSource filed against VeriSign, Inc. in June 2008.
CyberSource Corporation Condensed Consolidated Balance Sheets (In
thousands) (Unaudited) December 31, ------------ 2009 2008 ----
---- Assets Current assets: Cash and cash equivalents $128,044
$73,292 Accounts receivable, net 22,878 18,251 Prepaid expenses and
other current assets 7,797 5,310 Deferred income taxes 2,635 2,635
----- ----- Total current assets 161,354 99,488 Property and
equipment, net 21,022 16,188 Intangible assets, net 103,413 129,643
Goodwill 289,278 289,278 Non-current deferred income taxes 17,359
20,512 Other non-current assets 2,520 2,539 Restricted cash 1,516
1,548 ----- ----- Total assets $596,462 $559,196 ======== ========
Liabilities and Stockholders' Equity Current liabilities: Accounts
payable $1,003 $588 Funds due to merchants 14,378 12,162 Other
accrued liabilities 20,694 18,272 Deferred revenue 5,630 4,519
Accrued restructuring 1,155 847 ----- --- Total current liabilities
42,860 36,388 Deferred revenue, less current portion 1,154 996
Other non-current liabilities - 1,099 Accrued restructuring, less
current portion 927 832 Other non-current tax liabilities 1,814
1,928 ----- ----- Total liabilities 46,755 41,243 Total
stockholders' equity 549,707 517,953 ------- ------- Total
liabilities and stockholders' equity $596,462 $559,196 ========
======== CyberSource Corporation Consolidated Statements of Cash
Flows (In thousands, except per share data) (Unaudited) Three
Months Ended Year Ended December 31, December 31, ------------
------------ 2009 2008 2009 2008 ---- ---- ---- ---- CASH FLOWS
FROM OPERATING ACTIVITIES: Net income $5,080 $10,034 $10,965
$10,729 Adjustments to reconcile net income to net cash provided by
operating activities: Amortization expense 6,309 7,168 26,230
28,673 Depreciation expense 2,673 1,708 8,755 6,305 Income on
investment in joint venture (68) (102) (360) (263) Stock-based
compensation 348 2,330 7,928 9,500 Restructuring related charges
599 490 1,531 960 Loss on disposal of property and equipment - 18 -
18 Changes in operating assets and liabilities: Accounts receivable
(3,702) (2,102) (4,627) (2,748) Prepaid expenses and other current
assets (504) (589) (2,487) (1,121) Deferred income taxes 2,351
(9,778) 3,153 (9,778) Other non-current assets 242 1,066 411 2,211
Accounts payable (186) (550) 415 (25) Accrued liabilities 3,650 693
195 4,029 Funds due to merchants 1,502 (1,007) 2,216 763 Deferred
revenues (6) 135 1,269 1,250 Other non-current tax liabilities
(201) 828 (114) (267) ---- --- ---- ---- Net cash provided by
operating activities 18,087 10,342 55,480 50,236 CASH FLOWS FROM
INVESTING ACTIVITIES: Purchases of property and equipment (953)
(1,422) (13,589) (11,847) ---- ------ ------- ------- Net cash used
in investing activities (953) (1,422) (13,589) (11,847) CASH FLOWS
FROM FINANCING ACTIVITIES: Proceeds from issuance of common stock
4,245 164 11,972 7,161 Tax benefit from employee stock options (16)
272 161 272 Repurchase of common stock - (7,835) - (10,703) -
------ - ------- Net cash provided by (used in) financing
activities 4,229 (7,399) 12,133 (3,270) Effect of exchange rate
changes on cash 124 (1,393) 728 (2,220) --- ------ --- ------
Increase in cash and cash equivalents 21,487 128 54,752 32,899 Cash
and cash equivalents at beginning of period 106,557 73,164 73,292
40,393 ------- ------ ------ ------ Cash and cash equivalents at
end of period $128,044 $73,292 $128,044 $73,292 ======== =======
======== =======
http://www.newscom.com/cgi-bin/prnh/19990513/CYBRSOURCELOGO
http://photoarchive.ap.org/ DATASOURCE: CyberSource Corporation
CONTACT: Bruce Frymire of CyberSource Corporation, +1-650-965-6042,
Web Site: http://www.cybersource.com/
Copyright