US online banking systems vendor Corillian has reported a fourth quarter loss and warned investors that revenue and earnings growth are likely to suffer in the near term as it takes action to resize its business model.
Fourth quarter revenue of $13.8 million showed a marginal improvement over the year before figure of $13.1 million, but the company reported a Q4 loss of $39,000, compared with a year-on-year profit of $3.2 million on rising operating expenses.
Revenue for the year to December 2005 dipped to $49.2 million, down from $50.7 in 2004 and income declined to $2.6 million against $10.4 million in 2004.
Full year 2005 license revenues were $11 million, or 22% of total revenue, as compared to $20.9 million, or 41% of total revenue, in 2004.
License revenues for the fourth quarter of 2005 were $2.2 million, or 16% of total revenues, as compared to $5.0 million, or 38% of total revenues, in the fourth quarter of 2004.
Total operating expenses for all of 2005 were about $6 million more than in 2004.
Alex Hart, president and CEO of Corillian says the company is investing in the products and processes necessary to substantially improve the predictability and long-term profitability of its business model.
In a statement, the company says: "The near-term impact of this shift will be increases in revenue backlog, but delayed improvement in revenue and earnings growth."
The company anticipates that first quarter 2006 revenues will be in the range of $13 to $15 million and GAAP EPS will range from a net loss of ($0.04) to $0.00 per diluted share, based on the current backlog of projects in implementation and potential deals in the sales pipeline.