US Internet banking systems vendor Corillian says revenues and profits for the first quarter were $500,000 lower than expected due to an unexpected delay in a major contract.
The Oregon-based vendor has posted net income of $654,000 for the first three months of 2005, down from $1.8m a year ago. Revenues for the first quarter were down slightly to $11.2m, from $11.7m in the first quarter of 2004.
Cash and investment balances at the end of the first quarter were $40.9m, compared to $39.4m at the end of the previous quarter.
Corillian says it was notified of delays with a major contract - its largest implementation project - at the end of the quarter and this has affected the timing of its revenue recognition.
Despite the slip, Corillian CEO Alex Hart remains upbeat, saying the firm has strengthened its sales pipeline, increased cash reserves and signed a Corillian Fraud Detection System deal with Citigroup.
The vendor says it is confident that Q2 results will be significantly better than the first half.
Based on the current backlog of projects in implementation and deals in the sales pipeline, Corillian anticipates that second quarter 2005 revenues will be in the range of $11 to $12 million. This excludes any impact of the vendor's acquisition of EBPP firm InteliData, which is expected to close late in the second quarter.
Corillian predicts three key areas of growth in the year ahead - increases in consumer online banking and bill payment, increased investment in business banking services, and broader interest in the detection and prevention of online fraud.
Corillian shares fell 4.41% in after hours trading on Nasdaq yesterday to $3.25.