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FOR IMMEDIATE RELEASE
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DCTI Reports Fiscal 2000 and First Quarter 2001 Results
Fiscal 2000 revenues top $25 Million
First quarter Fiscal 2001 revenues reach record $9.5 Million
PARK CITY, Utah, November 20, 2000--Digital Courier Technologies, Inc. (Nasdaq:
DCTI), a leading provider of advanced e-payment services specializing in fraud
and risk management, announced financial results for the year ended and quarter
ended June 30, 2000, and for the quarter ended September 30, 2000.
DCTI recorded revenues for the fiscal year ended June 30, 2000, of $25.8
million, compared to fiscal 1999 revenues of $3.9 million. Revenues for the
three months ended June 30, 2000, were $8.0 million, versus $2.8 million for the
three months ended June 30, 1999. For the quarter ended September 30, 2000,
revenues were $9.5 million, compared to the $3.0 million reported for the
quarter ended September 30, 1999.
The Company reported an operating loss for the fiscal year ended June 30, 2000,
of $(7.5 million) excluding amortization, depreciation, and non-cash
compensation associated with the issuance of stock options. For the quarter
ended June 30, 2000, the operating loss, excluding non-cash items, was $(4.4
million). For the fiscal year ended June 30, 1999, our operating loss, excluding
non-cash items, was $(12.6 million) and for the quarter ended June 30, 1999, our
operating loss excluding non-cash items was $(1.4 million). For the quarter
ended September 30, 2000, the Company's operating loss excluding non-cash items
was $(0.2 million), compared to an operating loss, excluding non-cash items, of
$(0.8 million) reported in the comparable period of 1999.
Net loss for the year ended June 30, 2000, was $(34.3 million), which included a
gain on the sale of stock from a previous investment of $8.6 million and
non-cash charges totaling $36.5 million compared to the net loss for the fiscal
year ended June 30, 1999, of $(21.3 million). Net loss per share for the year
ended June 30, 2000, was $(.94) per share, as compared to the net loss per share
of $(1.64) for the year ended June 30, 1999. For the quarter ended June 30,
2000, a net loss of $(18.1 million) was reported, compared to a net loss of
$(3.5 million) for the quarter ended June 30, 1999. Net loss per share was
$(.38) for the quarter ended June 30, 2000, compared to a net loss of $(.23)
reported in the comparable quarter of 1999. For the quarter ended September 30,
2000, a net loss of $(12.5 million) was reported, resulting in a net loss per
share of $(.26). For the quarter ended September 30, 1999, the Company reported
a net loss of $(2.9 million) and a net loss per share of $(.16).
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"We are pleased to be able to issue DCTI's year-end and first quarter financial
results," said Chief Financial Officer John Hanlon. "The audit has been a
careful and thorough process and we look forward to putting the past behind us
as we continue to expand our business. In particular, the first quarter of
FY2001 reflected strong revenue growth and a clearer path to profitability,"
continued Hanlon.
As previously reported, the Company recently completed an internal investigation
related to the Company's acquisition of DataBank International Ltd. The Company
completed this acquisition on October 5, 1999. As a result of the investigation,
negotiations with certain individuals resulted in the return of 8,637,622 shares
of DCTI common stock to the Company. The return of the shares will be accounted
for as a one-time, non-cash gain of approximately $25 million in Q2 FY2001. The
return of the shares has reduced total shares outstanding from 48,682,066 to
40,044,444 and does not require restatement of prior periods.
"The internal investigation resulted in more than 8.6 million DCTI shares being
returned to the Company. It is a positive conclusion for our shareholders," said
Ken Woolley, Chairman of DCTI. "Demand for DCTI's payment processing solutions
continues to be strong and we look forward to continued growth as a premier
e-payment services provider," continued Woolley.
The financial results presented herein are unaudited and are subject to
adjustment. The audit of the Company's fiscal 2000 results and the filing of its
Form 10K for the year ended June 30, 2000, and its Form 10Q for the quarter
ended September 30, 2000, are expected to be completed during the week of
November 26, 2000.
About DCTI
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DCTI is at the forefront of Internet payment technology. A recognized specialist
in risk management and fraud control, DCTI provides highly-scalable, reliable,
and fully-integrated payment software and systems for businesses, Internet
merchants, and financial institutions. Payment features of the DCTI system
include advanced authentication, validation, fraud screening, payment
authorization, settlement, and real-time reporting. DCTI's notable client base
and affiliations include U.S. and international banks and merchants and ongoing
development partnerships with industry leaders such as Equifax, NDC e-commerce,
TSAI, and GlobalPlatform. For more information, please visit www.dcti.com.
This press release contains forward-looking statements made pursuant to the
"safe harbor" provisions of the Private Securities Litigation Reform Act of
1995. You are cautioned that such forward-looking statements are not guarantees
of future performance and involve risks and uncertainties which could
significantly affect expected results in the future from those expressed in any
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such forward-looking statements made by, or on behalf of the Company. Certain
factors that could cause actual results to differ materially include, without
limitation, risks relating to: business conditions and growth in the e-payments
industry and the general economy, both domestic and international; lower than
expected customer contracts; competitive factors, including pricing pressures,
technological developments and products offered by competitors; technological
difficulties and resource constraints encountered in developing new products;
and the timely flow of competitive new products and market acceptance of those
products. Actual results may differ materially from the statements made as a
result of risk factors inherent in our business, industry, customer base, or
other factors, the Company's continued ability to create or acquire products and
services that customers will find attractive and the potential for increased
competition, which could affect pricing and profitability.
Investor Contact for DCTI:
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Rip Bains, Investor Relations, DCTI, 415-276-6113, or [email protected].
Media Contact for DCTI:
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Wynne Ahern, Communication Strategies, 510-663-3213, or [email protected]
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