ACI Worldwide (ACIW) Q4 2006 earnings summary

Executive summary

• Fiscal 2006 revenue rose 11.1% to $347.9 million, while net income increased to $55.4 million; acquisitions, restructuring and global expansion shaped the year.

• The operating model was consolidated into one unit, with regional management reporting across the Americas, EMEA and Asia/Pacific.

• More than $110 million in cash and marketable securities, plus $75 million of unused revolving capacity, supported strategic investment plans.

Financial highlights

• Revenue was $347.9 million, up 11.1% YoY; software license fees were $175.6 million, maintenance $103.7 million and services $68.6 million.

• Operating income was $53.8 million versus $64.3 million; net income was $55.4 million versus $43.1 million.

• Fiscal 2006 diluted EPS was $1.45 versus $1.12; results included an $8.5 million class-action settlement charge.

• Operating cash flow was $60.7 million; investing cash outflow was $79.4 million and financing cash inflow was $45.2 million.

Outlook and guidance

• Management expected continued growth in 2007, citing industry demand and internal efforts to reorganize for growth and globalization.

• Strategy focused on international expansion, acquisition integration, a global low-cost development infrastructure and broader software-as-a-service offerings.

• Electronic payment volumes were forecast to grow ~13% annually over five years; forecasts and backlog estimates remain subject to customer renewals, cancellations, delivery timing and currency movements.