ACI Worldwide has announced that it is restating revenue for its March 31, 2008 quarter. But although final results for the year are not yet available, the company expects that its 2008 revenue will be approximately $418 million, sales will be approximately $460 million, operating free cash flow will be approximately $65 million and backlog will be approximately $1.4 billion, in each case exceeding prior guidance for the year.
ACI Worldwide, Inc. (Nasdaq:ACIW), a leading international provider of software for electronic payment systems, announced today that it has determined that $1.9 million of revenue recognized in its March 31, 2008 quarter for a software project should have been deferred until further project milestones were achieved. The customer has paid the invoices to which the deferred revenue relates. Accordingly, this deferral does not impact ACI's operating free cash flow for the 2008 first quarter. ACI's backlog estimate as of March 31, 2008 will increase by $1.9 million as a result of this deferral and a corresponding $0.4 million in costs, as well as $0.1 million in taxes, will also be deferred. ACI estimates that its net loss for the first quarter 2008 will be increased by $1.4 million as a result of the deferral from $3.46 million to $4.86 million.
ACI will file an amended Form 10-Q for the quarter ended March 31, 2008 containing restated consolidated financial statements correcting this error prior to filing its 2008 Form 10-K. At that time, subject to completion of the review relating to the error, ACI also intends to amend its second and third quarter 2008 quarter reports to report year-to-date data reflecting the error. Until amended as described in this press release, the consolidated financial statements for the March 31, 2008 quarter, and subsequent quarters, should not be relied upon. ACI expects to timely file its 2008 Annual Report on Form 10-K.
Although final results for the year are not yet available, ACI currently expects that its 2008 revenue will be approximately $418 million, sales will be approximately $460 million, operating free cash flow will be approximately $65 million and backlog will be approximately $1.4 billion, in each case exceeding prior guidance for the year. The combined "rev-log" metric grew by $62 million year over year, which is less than prior guidance, primarily impacted by approximately $70 million of currency fluctuations, as well as sales product mix. ACI will discuss its results fully on its year end conference call. All 2008 year-end estimates are preliminary, and differences may arise between estimates and actual results, which will be available when ACI completes the preparation of its audited financial statements for 2008.