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ACI Worldwide reports record financials for Q4, year 2012

March 4, 2013

ACI Worldwide Inc., a provider of payment systems, has announced financial results for the period ended Dec. 31, 2012, as well as guidance for 2013.

“We closed out a transitional 2012 with record revenues, sales bookings and earnings,” said ACI Worldwide CEO Philip Heasley. “With the S1 integration substantially complete, we are excited to enter 2013 well positioned to accelerate our growth objectives. 

"Further, the proposed acquisition of Online Resources will add a highly strategic electronic bill payment platform to the ACI suite of products, enabling us to be the Universal Payments Platform company."

Following are some of the results released by ACI:

Sales  

• Sales bookings in the quarter totaled $309 million, an increase of $138 million, or 81 percent, over Q4 2011. 
• Sales net of term extensions in the quarter totaled $198 million, an increase of $81 million, or 69 percent, over Q4 2011. 
• Sales of $81 million contributed by S1 during Q4.
• Historical ACI sales increased $57 million, or 33 percent, over Q4 2011 sales bookings of $171 million.
• For the year 2012, sales totaled $766 million, an increase of $210 million, or 38 percent, compared with $556 million last year. S1 contributed $189 million to sales for the year.

Revenue

• GAAP revenue increased to $224.1 million, an increase of $89.1 million, or 66 percent, over Q4 2011. 
• Historical ACI revenue increased $40.7 million, or 30 percent; S1 contributed $48.4 million of revenue in the fourth quarter.
• Non-GAAP revenue was $227.7 million, an increase of $92.7 million, or 69 percent, over Q4 2011.
• Revenue for the full year 2012 was $666.6 million, an increase of $201.5 million, or 43 percent.
• Historical ACI revenue increased $39.6 million, or 8.5 percent, and S1 contributed $161.9 million of revenue to the full year.
• Non-GAAP revenue was $689.0 million, an increase of $223.9 million, or 48 percent, over 2011.

Operating Expenses

• Excluding $4.4 million and $3.2 million of S1 acquisition related one-time expenses incurred in the quarters ended December 31, 2012 and 2011, respectively, operating expenses increased $49.3 million compared to Q4 2011, primarily due to the addition of $42.7 million of S1 operating expenses, inclusive of $4.0 million of intangibles amortization.  

Operating Income

• Consolidated GAAP operating income was $75.5 million for the quarter.
• Non-GAAP operating income totaled $83.6 million, an increase of $43.4 million, or 108 percent, above Q4 2011.
• Non-GAAP operating income excludes the $3.6 million deferred revenue adjustment due to purchase accounting as well as the impact of $4.4 million of acquisition-related one-time expenses.
• Operating income for the full year 2012 was $74.4 million, versus $66.2 million for the full year 2011.
• Excluding the $22.5 million deferred revenue adjustment due to purchase accounting as well as the impact of $31.5 million of acquisition-related one-time expenses, operating income increased $55.4 million, or 76 percent, to $128.3 million.

Liquidity

• ACI ended the year with $76.3 million in cash on hand as of Dec. 31, 2012. 
• During Q4, the company repaid $20.7 million in refundable liability to IBM upon termination of their alliance and $10.4 million in debt. 
• ACI ended the quarter with a debt balance of $374.3 million.
• As of Dec. 31, 2012, the company had up to $62 million of unused borrowings under its revolving credit facility. 

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