US fintech vendor S1 Corporation is reporting a net loss for the year of $1.1m, compared to a profit of $5.6m in 2004, after restructuring costs ate into earnings.
In October S1 said it was cutting eight per cent of its workforce and closing some operations in a bid to reduce annual operating costs by $20m to $22m by the end of the year.
Costs associated with the restructuring hit $15m, with $10.8m occuring in the fourth quarter. S1 says net loss from continuing operations in Q4 was $20.7m, compared to a loss of $8.8m a year ago. However excluding the costs, S1 says its Q4 net loss would have been $9.9m.
The vendor's revenue for the full year 2005 slipped to $204.1m, compared to $206.4m in 2004, while Q4 revenue fell to $46m compared to $56.5m in the previous year.
James Mahan, CEO, S1, says although a delay in the delivery of the firm's newest Enterprise products and the reorganisation impacted Q4 results, the company is making incremental progress under the new structure.
"This progress includes the initial delivery of our Enterprise 3.5 products into the managed introduction programme in Q1; new investment in the community financial and Postilion products; and a shift in culture focused around business units that can more effectively serve our customers," adds Mahan.