Bottomline Technologies Inc. (EPAY, Financial) filed Quarterly Report for the period ended 2012-12-31.
Bottomline Technologies, Inc. has a market cap of $1.03 billion; its shares were traded at around $27.52 with a P/E ratio of 39.5 and P/S ratio of 4.1929. Bottomline Technologies, Inc. had an annual average earning growth of 36.2% over the past 5 years.
Sales and Marketing. Sales and marketing expenses consist primarily of salaries and other related costs for sales and marketing personnel, sales commissions, travel, public relations and marketing materials and trade show participation. Sales and marketing expenses increased in the three months ended December 31, 2012 as compared to the three months ended December 31, 2011 as a result of an increase in employee related costs of $2.8 million, increased travel related expenses of $0.2 million and increased acquisition and restructuring costs of $0.3 million primarily related to our fiscal year 2013 and 2012 acquisitions. The increase was also driven by increases of $0.3 million in marketing initiatives, $0.2 million in professional services and $0.1 million in recruitment related expenses. We expect that sales and marketing expenses will increase over the remainder of the fiscal year as we continue to focus on our marketing initiatives to support our new and existing products, particularly our commercial banking products and Paymode-X.
Payments and Transactional Documents. The revenue increase of $4.6 million for the six months ended December 31, 2012 was primarily attributable to increased software license revenue of $2.2 million, increased service and maintenance revenue of $1.9 million and increased subscriptions and transactions revenue of $0.5 million. The increased revenue includes the favorable effect of foreign exchange rates of $0.1 million. The segment profit increase of $1.2 million for the six months ended December 31, 2012 was attributable to improved gross margins of $3.4 million related primarily to the increased revenue, which was offset in part by increased sales and marketing expenses of $1.5 million and increased product development expenses of $0.5 million.
Banking Solutions. Revenues from our Banking Solutions segment increased $8.6 million as compared to the same period in the prior fiscal year due to an increase in subscriptions and transactions revenue of $16.6 million related to our fiscal year 2012 commercial banking acquisition and an increase of $0.5 million in maintenance revenue which was partially offset by a decrease in professional services revenue of $8.1 million as a result of the completion of several large ongoing banking projects and a decrease in software license revenue of $0.4 million. The profit decrease of $2.1 million was primarily due to increased operating expenses of $7.3 million offset in part by improved gross margins of $5.2 million. The increased operating expenses are primarily the result of increased infrastructure and sales and marketing expenses attributable to investments we are making to support, improve and grow the commercial banking business.
Operating Activities. Cash generated from operating activities primarily relates to our net income, less the impact of non-cash expenses and changes in working capital. Cash generated from operations increased by $5.2 million during the six months ended December 31, 2012 as compared to the same period in the prior year. The increase was primarily due to a decrease in cash used in accounts receivable of $4.1 million, an increase in cash provided by deferred revenue of $2.6 million, and a decrease in cash used for accounts payable of $1.6 million, which was offset in part by a decrease in cash provided by prepaid assets of $0.5 million and a decrease in cash provided by other assets of $0.3 million when compared to the same period in the prior year.
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Bottomline Technologies, Inc. has a market cap of $1.03 billion; its shares were traded at around $27.52 with a P/E ratio of 39.5 and P/S ratio of 4.1929. Bottomline Technologies, Inc. had an annual average earning growth of 36.2% over the past 5 years.
Highlight of Business Operations:
Payments and Transactional Documents. The Payments and Transactional Documents segment revenue increased $3.1 million for the three months ended December 31, 2012 as compared to the same period in the prior year as a result of increases of $1.3 million in software license revenue, $0.3 million in subscriptions and transactions revenue, $1.4 million in service and maintenance revenue and equipment and supplies revenue of $0.1 million. The revenue increases were primarily attributable to increased European revenue as a result of our fiscal 2013 acquisition of Albany. The revenue includes a favorable effect of foreign exchange rates of $0.3 million associated with the British Pound Sterling which appreciated against the US Dollar when compared to the same period in the prior fiscal year. The segment profit increase of $0.6 million for the three months ended December 31, 2012 was primarily attributable to increased gross margins related to the increased sales volume offset in part by increased operating expenses of $1.6 million, primarily attributable to increased sales and marketing and product development expenses. We expect revenue and profit for the Payments and Transactional Documents segment to increase during the remaining two quarters of fiscal year 2013 primarily as a result of our recent acquisition of Albany.Sales and Marketing. Sales and marketing expenses consist primarily of salaries and other related costs for sales and marketing personnel, sales commissions, travel, public relations and marketing materials and trade show participation. Sales and marketing expenses increased in the three months ended December 31, 2012 as compared to the three months ended December 31, 2011 as a result of an increase in employee related costs of $2.8 million, increased travel related expenses of $0.2 million and increased acquisition and restructuring costs of $0.3 million primarily related to our fiscal year 2013 and 2012 acquisitions. The increase was also driven by increases of $0.3 million in marketing initiatives, $0.2 million in professional services and $0.1 million in recruitment related expenses. We expect that sales and marketing expenses will increase over the remainder of the fiscal year as we continue to focus on our marketing initiatives to support our new and existing products, particularly our commercial banking products and Paymode-X.
Payments and Transactional Documents. The revenue increase of $4.6 million for the six months ended December 31, 2012 was primarily attributable to increased software license revenue of $2.2 million, increased service and maintenance revenue of $1.9 million and increased subscriptions and transactions revenue of $0.5 million. The increased revenue includes the favorable effect of foreign exchange rates of $0.1 million. The segment profit increase of $1.2 million for the six months ended December 31, 2012 was attributable to improved gross margins of $3.4 million related primarily to the increased revenue, which was offset in part by increased sales and marketing expenses of $1.5 million and increased product development expenses of $0.5 million.
Banking Solutions. Revenues from our Banking Solutions segment increased $8.6 million as compared to the same period in the prior fiscal year due to an increase in subscriptions and transactions revenue of $16.6 million related to our fiscal year 2012 commercial banking acquisition and an increase of $0.5 million in maintenance revenue which was partially offset by a decrease in professional services revenue of $8.1 million as a result of the completion of several large ongoing banking projects and a decrease in software license revenue of $0.4 million. The profit decrease of $2.1 million was primarily due to increased operating expenses of $7.3 million offset in part by improved gross margins of $5.2 million. The increased operating expenses are primarily the result of increased infrastructure and sales and marketing expenses attributable to investments we are making to support, improve and grow the commercial banking business.
Operating Activities. Cash generated from operating activities primarily relates to our net income, less the impact of non-cash expenses and changes in working capital. Cash generated from operations increased by $5.2 million during the six months ended December 31, 2012 as compared to the same period in the prior year. The increase was primarily due to a decrease in cash used in accounts receivable of $4.1 million, an increase in cash provided by deferred revenue of $2.6 million, and a decrease in cash used for accounts payable of $1.6 million, which was offset in part by a decrease in cash provided by prepaid assets of $0.5 million and a decrease in cash provided by other assets of $0.3 million when compared to the same period in the prior year.
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