SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
April 23, 1999
FUNDTECH LTD.
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(Exact Name of Registrant as Specified in its Charter)
ISRAEL 0-29634 NOT APPLICABLE
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(State or other (Commission File Number) (I.R.S. Employer
Jurisdiction of Identification Number)
Incorporation)
BEIT HABONIM, 2 HABONIM STREET, RAMAT GAN, ISRAEL 52462
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(Address of Principal Executive Offices) (Zip Code)
011-972-3-575-2750
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(Registrant's Telephone Number, Including Area Code)
NOT APPLICABLE
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(Former Name or Former Address, if Changed Since Last Report)
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ITEM 5. OTHER EVENTS.
Filed herewith is a copy of the press release of Fundtech Ltd. ("Fundtech"),
dated April 23, 1999, announcing Fundtech's financial results for the first
quarter of 1999, which includes unaudited consolidated statements of operations
for the three months ended March 31, 1999 and March 31, 1998, and unaudited
consolidated balance sheets as of March 31, 1999 and December 31, 1998, for
Fundtech and its subsidiaries. All normal recurring adjustments that are, in the
opinion of Fundtech's management, necessary for a fair presentation of the
results of operations for the periods presented have been included. The nature
of Fundtech's business is such that the results for any interim period are not
necessarily indicative of the results for a full year.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
(a) Financial Statements of Businesses Acquired.
Not applicable.
(b) Pro Forma Financial Information.
Not applicable.
(c) Exhibits.
99.1 Press Release, dated April 23, 1999.
2
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Dated: April 23, 1999
FUNDTECH LTD.
By: /s/ Reuven Ben-Menachem
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Name: Reuven Ben-Menachem
Title: President and
Chief Executive Officer
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EXHIBIT INDEX
Exhibit No. Description
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99.1 Press Release, dated April 23, 1999.
Exhibit 99.1
CONTACT: Michael Carus
Executive Vice President & CFO
Fundtech Ltd.
201-946-1100
FOR IMMEDIATE RELEASE
CONTACT: Connie Bienfait
Morgen-Walke Associates
Press: Brian Maddox
212-850-5600
FUNDTECH REVENUE INCREASES 161% TO $7.9 MILLION
*NET INCOME INCREASES TO $1.8 MILLION OR $0.16 PER DILUTED SHARE
Jersey City, New Jersey, April 23, 1999--Fundtech, Ltd. (Nasdaq: FNDTF), today
announced its financial results for the first quarter of 1999. The Company
reported revenue of $7.9 million, more than double the $3.0 million reported on
the first quarter of 1998. Net income for the quarter increased to $1.8 million
or $0.16 per diluted share, as compared to $231,000 or $0.03 per diluted share,
for the year-ago quarter.
Software license fees increased 128% to $4.6 million for the three months ended
March 31, 1999, from $2.0 million in the three months ended March 31, 1998. The
increase in license fees was due to the continued market penetration of the
Company's United States payments products and further advances into the
international marketplace. Revenue attributable to solutions sales for banks
based outside of the United States accounted for approximately 24% of total
revenue compared to less than 10% during the first quarter of 1998. Maintenance
and service revenue was $2.8 million, a 310% increase over $685,000 in the
year-ago quarter. Hardware sales were $471,000 for the quarter as compared to
$325,000 for the quarter ended March 31, 1998.
Fundtech is a leading provider of software which enables businesses and their
banks to process payments, transfer funds and manage cash positions
electronically. The Company's client/server software products automate the
process of transferring funds among corporations, banks and clearance systems
and enable businesses to manage global cash positions efficiently and in
real-time.
Certain statements contained herein, including statements regarding the
development of the Company's services, markets, product functionality and year
2000 compliance and future demand for the Company's products services and other
statements regarding matters that are not historical facts, are forward-looking
statements (as defined in the Private Securities Litigation Reform Act of 1995).
Such forward-looking statements include risks and uncertainties; consequently,
actual results may differ materially from those expressed or implied thereby.
Factors that could cause actual results to differ materially include, but are
not limited to, variability of quarterly operating results, dependence on key
personnel, ability to effectively manage growth, risks associated with rapid
technological advances, risks associated with possible acquisitions, any
integration of those acquisitions into the company's present business, risks
associated with the Company's strategic partnerships, various project associated
risks, including internet projects, substantial competition, risks associated
with intellectual property rights, risks associated with international
operations and other risk factors listed from time to time in the Company's
filings and reports.
This press release shall not constitute an offer to sell or the solicitation of
an offer to buy, nor shall there be any sale of these securities in any state or
jurisdiction in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of any such state or
jurisdiction.
(Tables to Follow)
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FUNDTECH LTD. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
Three months ended
March 31,
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1999 1998
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Revenues:
Software licenses $ 4,622 $ 2,018
Maintenance and services fees 2,808 685
Hardware sales 471 325
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Total revenues 7,901 3,028
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Cost of revenues:
Software licenses costs 30 67
Maintenance and services fees 1,649 294
Hardware costs 372 277
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Total cost of revenues 2,051 638
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Gross profit 5,850 2,390
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Operating expenses:
Software development 2,337 1,267
Selling and marketing, net 1,095 545
General and administrative 748 425
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Total operating expenses 4,180 2,237
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Income from operations 1,670 153
Financial income, net 124 78
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Net income $ 1,794 $ 231
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Net income used in computing:
income per share $ 1,794 $ 231
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Basic income per share $ 0.17 $ 0.03
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Diluted income per share $ 0.16 $ 0.03
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Shares used in computing:
Basic income per share 10,845,658 8,308,000
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Diluted income per share 11,554,345 8,885,000
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FUNDTECH LTD. AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
March 31, December 31,
1999 1998
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<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 12,014 $ 13,019
Trade receivable, net 12,282 12,040
Other accounts receivables and prepaid expenses 1,626 579
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Total current assets 25,922 25,638
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Long-Term Trade Receivables 593 244
Property and equipment, net 4,740 3,759
Other assets, net 2,886 2,963
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Total assets $ 34,141 $ 32,604
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Trade payables $ 2,221 $ 1,386
Deferred revenues and accrued expenses 4,290 6,112
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Total current liabilities 6,511 7,498
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Other liabilities 71 58
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Shareholders' equity
Share capital 34 34
Additional paid-in capital 42,358 41,664
Deferred compensation (196) (219)
Accumulated deficit (14,637) (16,431)
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Total shareholders' equity 27,559 25,048
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Total liabilities and shareholders' equity $ 34,141 $ 32,604
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