CyberSource Announces First Quarter 2001 Financial Results

Apr 17, 2001, 01:00 ET from CAPTION: CYBRSOURCELOGO CYBERSOURCE CyberSource Company Logo. (PRNewsFoto)[KC] SAN JOSE, CA USA 05/13/1999

    MOUNTAIN VIEW, Calif., April 17 /PRNewswire/ --
 CyberSource Corporation (Nasdaq:   CYBS), a leading provider of mission-critical
 eCommerce transaction applications and services for businesses, today reported
 financial results for its first quarter ended March 31, 2001.
     Revenue for the first quarter of 2001 was $7.7 million, a 14 percent
 increase over last year's first quarter revenues of $6.8 million.  Total
 transactions processed for the first quarter of 2001 were 56.8 million, a
 134 percent increase over the first quarter 2000 transaction volume of
 24.2 million and slightly less than the record fourth quarter of 2000
 transaction volume of 58.7 million, which included the holiday shopping
 season.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19990513/CYBR

SOURCELOGO ) Pro forma net loss for the first quarter of 2001 was $10.6 million, or ($0.30) per share, as compared to a net loss of $8.0 million, or ($0.31) per share, in the first quarter of 2000. Actual net loss for the first quarter of 2001 includes one-time costs of $3.3 million related to the previously announced restructuring and reorganization of the company. "Our transaction business performed well this quarter, however, as I discussed two weeks ago in our earnings preview, the continued deterioration in corporate IT spending had a major impact on our software and professional services business this past quarter," stated Bill McKiernan, chairman and CEO of CyberSource. "While our conservative spending controls helped enable the company to meet the consensus EPS number, I believe we have adapted our company to the new market environment. "Given the current weakness in corporate IT spending, we took the necessary and appropriate actions of reducing and reorganizing our workforce in the first quarter, particularly in the professional services and sales groups," McKiernan continued. "Combined, these actions will save the company between $6 and $7 million per quarter going forward. The software and professional services sales forces have been reorganized to focus more on our channel programs, selling through resellers, solutions alliances and OEMs. We have had success selling our transaction services through our channel programs and we believe we can leverage similar relationships to market our software and professional services businesses. "Our transaction business had a very strong first quarter in what is traditionally the weakest quarter of the year with respect to transactions processed. The 56.8 million transactions we processed were slightly better than expectations. In today's market environment our 'pay as you grow' transaction services model resonates with our customers. CyberSource has emerged as the clear leader in this area with a strong reputation for reliability, scalability and excellent customer support. Those are the obvious qualities that attract and retain our blue-chip customers." "Our financial position remains strong with no debt and a quarter-end cash and short-term investments balance of approximately $80 million. Gross margins continued to improve in the first quarter to a record 36% and we look to further improve the margins as the year progresses. The actions we took in the first quarter will aide in further reducing our expenses as we proceed toward our goal of becoming cash flow positive by the end of this year," McKiernan concluded. CyberSource will host a public conference call to discuss the first quarter results and current business developments today at 4:30 p.m. Eastern time (1:30 p.m. Pacific), which can be accessed by either of the following ways: Live web cast http://www.cybersource.com/cgi-bin/ir.pl A replay of this web cast will remain available at this location through May. Live conference call 888-542-8515 (U.S. and Canada) 706-634-2163 (International) A taped replay of this call will be available for 48 hours. The dial-in numbers are 800-642-1687 (U.S.) 706-645-9291 (International). The call's ID number is: 514791. About CyberSource CyberSource is a leading developer and provider of enterprise eCommerce transaction software and services, and a pioneer in the area of Internet fraud detection. More than 3,000 businesses throughout the world have chosen to use the CyberSource eCommerce Transaction Suite. The CyberSource eCommerce Transaction Suite offers customer-controlled, real-time services including payment, tax calculation, stored value and risk management. CyberSource Global Professional Services develops comprehensive eCommerce solutions that are built upon CyberSource's mission-critical transaction software and services to provide security, reliability, and extensibility for rapid growth. Customers and partners of CyberSource include leading retailers, manufacturers and businesses selling online, as well as over half of the 30 companies that comprise the Dow Jones Industrial Average, including Home Depot and Wal-Mart. CyberSource Corporation is headquartered in Mountain View, Calif., and has offices in Japan and the United Kingdom, as well as various other locations throughout the United States. The company can be found on the World Wide Web at www.cybersource.com. CyberSource information is also available via email at info@cybersource.com or ir@cybersource.com. Statements in this release that are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, estimates, projections, expectations, goals or intentions regarding the future. Forward-looking statements in this release include statements regarding (1) adapting the company to the new market environment, (2) the appropriateness in reducing and reorganizing the company's workforce, (3) the ability of the company to leverage channel relationships to market software and professional services, (4) attracting and retaining blue chips customers, (5) increasing gross margins as the year progresses, and (6) becoming cash flow positive by the end of 2001. Factors that could cause actual results to differ materially include risks and uncertainties such as any unforeseen event or any unforeseen technical difficulties related to the Internet as a whole or to the CyberSource services in particular, the rate of spending by CyberSource's customers, the rate of internal spending, the pace of growth of eCommerce, the development by CyberSource and its competitors of new products and services, and general economic conditions. It is important to note that actual outcomes could differ materially from those in such forward-looking statements. Readers should also refer to the documents filed by CyberSource with the Securities and Exchange Commission, specifically the annual report filed on Form 10-K covering the one-year period ending December 31, 2000, filed with the Securities and Exchange Commission on April 2, 2001, which identify important risk factors. For more information visit http://www.cybersource.com Or email to info@cybersource.com or ir@cybersource.com. NOTE: CyberSource is a registered trademark in the U.S. and other countries. CyberSource eCommerce Transaction Suite is a service mark of CyberSource Corporation. All other brands and product names are trademarks or registered trademarks of their respective companies. CyberSource Corporation Pro Forma Consolidated Statements of Operations (A) (In thousands, except per share data) Three Months Ended March 31, 2001 2000 (Unaudited) Revenues: Transaction and support $5,345 $4,396 Professional services 1,272 2,354 Enterprise software 1,099 -- Total revenues 7,716 6,750 Cost of revenues: Transaction and support 4,072 3,784 Professional services 601 1,558 Enterprise software 274 -- Total cost of revenues 4,947 5,342 Gross profit 2,769 1,408 Operating expenses: Product development 4,939 2,952 Sales and marketing 6,538 5,457 General and administrative 3,110 2,963 Total operating expense 14,587 11,372 Loss from operations (11,818) (9,964) Loss on investment in joint venture (106) -- Interest income, net 1,308 1,920 Net loss $(10,616) $(8,044) Basic and diluted net loss per share $(0.30) $(0.31) Shares used in computing basic and diluted net loss per share 35,138 25,674 Non-financial Operating Data: Transactions processed 56,788 24,245 Note (A): The pro forma results for the three months ended March 31, 2001 and 2000 provide information reflecting the elimination of one-time costs relating to the acquisition of ExpressGold.com Corporation and PaylinX Corporation, non-cash deferred compensation and intangible asset amortization and restructuring charges related to our reduction in force. CyberSource Corporation Consolidated Statements of Operations (In thousands, except per share data) Three Months Ended March 31, 2001 2000 (Unaudited) Revenues: Transaction and support $5,345 $4,396 Professional services 1,272 2,354 Enterprise software 1,099 -- Total revenues 7,716 6,750 Cost of revenues: Transaction and support 4,072 3,784 Professional services 601 1,558 Enterprise software 274 -- Total cost of revenues 4,947 5,342 Gross profit 2,769 1,408 Operating expenses: Product development 4,939 2,952 Sales and marketing 6,538 5,457 General and administrative 3,110 2,963 Amortization of goodwill and other intangible assets 12,320 -- Acquisition related costs -- 834 Deferred compensation amortization 769 262 Restructuring charge 3,271 -- Total operating expense 30,947 12,468 Loss from operations (28,178) (11,060) Loss on investment in joint venture (106) -- Interest income, net 1,308 1,920 Net loss $ (26,976) $(9,140) Basic and diluted net loss per share $(0.77) $(0.36) Shares used in computing basic and diluted net loss per share 35,138 25,674 Non-financial Operating Data: Transactions processed 56,788 24,245 CyberSource Corporation Consolidated Balance Sheets (In thousands) March 31, December 31, 2001 2000 (unaudited) Assets Current assets: Cash, cash equivalents and short-term investments $79,996 $92,003 Accounts receivable, net 7,283 8,689 Prepaid expenses and other current assets 1,607 1,733 Total current assets 88,886 102,425 Intangible assets 124,251 136,570 Property and equipment, net 20,077 21,554 Investment in joint venture 454 560 Other noncurrent assets 611 746 Total assets $234,279 $261,855 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $878 $1,108 Other accrued liabilities 8,803 9,922 Deferred revenue 3,255 3,312 Current obligations under capital leases 267 415 Total current liabilities 13,203 14,757 Noncurrent obligations under capital leases 4 65 Total stockholders' equity 221,072 247,033 Total liabilities and stockholders' equity $234,279 $261,855

SOURCE CyberSource Corporation Web site: http: //www.cybersource.com Photo: http: //www.newscom.com/cgi-bin/prnh/19990513/CYBR

SOURCELOGO AP Archive: http://photoarchive.ap.org PRN Photo Desk, 888-776-6555 or 201-369-3467 Company News On-Call: http: //www.prnewswire.com/comp/107369.html or fax, 800-758-5804, ext. 107369 CONTACT: David Gennarelli, Director of Investor Relations of CyberSource Corporation, 650-965-6185, or dgennarelli@cybersource.com CAPTION: CYBR

SOURCELOGO CYBER

SOURCE CyberSource Company Logo. (PRNewsFoto)[KC] SAN JOSE, CA USA 05/13/1999
    MOUNTAIN VIEW, Calif., April 17 /PRNewswire/ --
 CyberSource Corporation (Nasdaq:   CYBS), a leading provider of mission-critical
 eCommerce transaction applications and services for businesses, today reported
 financial results for its first quarter ended March 31, 2001.
     Revenue for the first quarter of 2001 was $7.7 million, a 14 percent
 increase over last year's first quarter revenues of $6.8 million.  Total
 transactions processed for the first quarter of 2001 were 56.8 million, a
 134 percent increase over the first quarter 2000 transaction volume of
 24.2 million and slightly less than the record fourth quarter of 2000
 transaction volume of 58.7 million, which included the holiday shopping
 season.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19990513/CYBRSOURCELOGO )
     Pro forma net loss for the first quarter of 2001 was $10.6 million, or
 ($0.30) per share, as compared to a net loss of $8.0 million, or ($0.31) per
 share, in the first quarter of 2000.  Actual net loss for the first quarter of
 2001 includes one-time costs of $3.3 million related to the previously
 announced restructuring and reorganization of the company.
     "Our transaction business performed well this quarter, however, as I
 discussed two weeks ago in our earnings preview, the continued deterioration
 in corporate IT spending had a major impact on our software and professional
 services business this past quarter," stated Bill McKiernan, chairman and CEO
 of CyberSource.  "While our conservative spending controls helped enable the
 company to meet the consensus EPS number, I believe we have adapted our
 company to the new market environment.
     "Given the current weakness in corporate IT spending, we took the
 necessary and appropriate actions of reducing and reorganizing our workforce
 in the first quarter, particularly in the professional services and sales
 groups," McKiernan continued.  "Combined, these actions will save the company
 between $6 and $7 million per quarter going forward.  The software and
 professional services sales forces have been reorganized to focus more on our
 channel programs, selling through resellers, solutions alliances and OEMs.  We
 have had success selling our transaction services through our channel programs
 and we believe we can leverage similar relationships to market our software
 and professional services businesses.
     "Our transaction business had a very strong first quarter in what is
 traditionally the weakest quarter of the year with respect to transactions
 processed.  The 56.8 million transactions we processed were slightly better
 than expectations.  In today's market environment our 'pay as you grow'
 transaction services model resonates with our customers.  CyberSource has
 emerged as the clear leader in this area with a strong reputation for
 reliability, scalability and excellent customer support.  Those are the
 obvious qualities that attract and retain our blue-chip customers."
     "Our financial position remains strong with no debt and a quarter-end cash
 and short-term investments balance of approximately $80 million.  Gross
 margins continued to improve in the first quarter to a record 36% and we look
 to further improve the margins as the year progresses.  The actions we took in
 the first quarter will aide in further reducing our expenses as we proceed
 toward our goal of becoming cash flow positive by the end of this year,"
 McKiernan concluded.
     CyberSource will host a public conference call to discuss the first
 quarter results and current business developments today at
 4:30 p.m. Eastern time (1:30 p.m. Pacific), which can be accessed by either of
 the following ways:
 
     Live web cast
     http://www.cybersource.com/cgi-bin/ir.pl
     A replay of this web cast will remain available at this location through
     May.
 
     Live conference call
     888-542-8515 (U.S. and Canada) 706-634-2163 (International)
     A taped replay of this call will be available for 48 hours.  The dial-in
     numbers are 800-642-1687 (U.S.) 706-645-9291 (International).  The call's
     ID number is:  514791.
 
     About CyberSource
     CyberSource is a leading developer and provider of enterprise eCommerce
 transaction software and services, and a pioneer in the area of Internet fraud
 detection.  More than 3,000 businesses throughout the world have chosen to use
 the CyberSource eCommerce Transaction Suite.  The CyberSource eCommerce
 Transaction Suite offers customer-controlled, real-time services including
 payment, tax calculation, stored value and risk management.  CyberSource
 Global Professional Services develops comprehensive eCommerce solutions that
 are built upon CyberSource's mission-critical transaction software and
 services to provide security, reliability, and extensibility for rapid growth.
 Customers and partners of CyberSource include leading retailers, manufacturers
 and businesses selling online, as well as over half of the 30 companies that
 comprise the Dow Jones Industrial Average, including Home Depot and Wal-Mart.
 CyberSource Corporation is headquartered in Mountain View, Calif., and has
 offices in Japan and the United Kingdom, as well as various other locations
 throughout the United States.  The company can be found on the World Wide Web
 at www.cybersource.com.  CyberSource information is also available via email
 at info@cybersource.com or ir@cybersource.com.
     Statements in this release that are not purely historical are
 forward-looking statements, including any statements regarding beliefs, plans,
 estimates, projections, expectations, goals or intentions regarding the
 future.  Forward-looking statements in this release include statements
 regarding (1) adapting the company to the new market environment, (2) the
 appropriateness in reducing and reorganizing the company's workforce, (3) the
 ability of the company to leverage channel relationships to market software
 and professional services, (4) attracting and retaining blue chips customers,
 (5) increasing gross margins as the year progresses, and (6) becoming cash
 flow positive by the end of 2001.  Factors that could cause actual results to
 differ materially include risks and uncertainties such as any unforeseen event
 or any unforeseen technical difficulties related to the Internet as a whole or
 to the CyberSource services in particular, the rate of spending by
 CyberSource's customers, the rate of internal spending, the pace of growth of
 eCommerce, the development by CyberSource and its competitors of new products
 and services, and general economic conditions.  It is important to note that
 actual outcomes could differ materially from those in such forward-looking
 statements.  Readers should also refer to the documents filed by CyberSource
 with the Securities and Exchange Commission, specifically the annual report
 filed on Form 10-K covering the one-year period ending December 31, 2000,
 filed with the Securities and Exchange Commission on April 2, 2001, which
 identify important risk factors.
 
     For more information visit http://www.cybersource.com
     Or email to info@cybersource.com or ir@cybersource.com.
 
     NOTE:  CyberSource is a registered trademark in the U.S. and other
 countries.  CyberSource eCommerce Transaction Suite is a service mark of
 CyberSource Corporation.  All other brands and product names are trademarks or
 registered trademarks of their respective companies.
 
 
                              CyberSource Corporation
                Pro Forma Consolidated Statements of Operations (A)
                       (In thousands, except per share data)
 
                                                Three Months Ended March 31,
                                                         2001           2000
                                                             (Unaudited)
     Revenues:
       Transaction and support                         $5,345         $4,396
       Professional services                            1,272          2,354
       Enterprise software                              1,099             --
         Total revenues                                 7,716          6,750
 
     Cost of revenues:
       Transaction and support                          4,072          3,784
       Professional services                              601          1,558
       Enterprise software                                274             --
         Total cost of revenues                         4,947          5,342
 
     Gross profit                                       2,769          1,408
 
     Operating expenses:
       Product development                              4,939          2,952
       Sales and marketing                              6,538          5,457
       General and administrative                       3,110          2,963
         Total operating expense                       14,587         11,372
 
     Loss from operations                            (11,818)        (9,964)
     Loss on investment in joint venture                (106)             --
     Interest income, net                               1,308          1,920
     Net loss                                       $(10,616)       $(8,044)
 
 
     Basic and diluted net loss per share             $(0.30)        $(0.31)
 
     Shares used in computing basic and diluted
      net loss per share                               35,138         25,674
 
      Non-financial Operating Data:
       Transactions processed                          56,788         24,245
 
 
     Note (A):  The pro forma results for the three months ended March 31, 2001
 and 2000 provide information reflecting the elimination of one-time costs
 relating to the acquisition of ExpressGold.com Corporation and PaylinX
 Corporation, non-cash deferred compensation and intangible asset amortization
 and restructuring charges related to our reduction in force.
 
                              CyberSource Corporation
                       Consolidated Statements of Operations
                       (In thousands, except per share data)
 
                                                Three Months Ended March 31,
                                                     2001            2000
                                                            (Unaudited)
 
     Revenues:
       Transaction and support                         $5,345         $4,396
       Professional services                            1,272          2,354
       Enterprise software                              1,099             --
         Total revenues                                 7,716          6,750
 
     Cost of revenues:
       Transaction and support                          4,072          3,784
       Professional services                              601          1,558
       Enterprise software                                274             --
         Total cost of revenues                         4,947          5,342
 
     Gross profit                                       2,769          1,408
 
     Operating expenses:
       Product development                              4,939          2,952
       Sales and marketing                              6,538          5,457
       General and administrative                       3,110          2,963
       Amortization of goodwill and other
        intangible assets                              12,320             --
       Acquisition related costs                           --            834
       Deferred compensation amortization                 769            262
       Restructuring charge                             3,271             --
         Total operating expense                       30,947         12,468
 
 
     Loss from operations                            (28,178)       (11,060)
     Loss on investment in joint venture                (106)             --
     Interest income, net                               1,308          1,920
     Net loss                                      $ (26,976)       $(9,140)
 
     Basic and diluted net loss per share             $(0.77)        $(0.36)
 
     Shares used in computing basic
      and diluted net loss per share                   35,138         25,674
 
     Non-financial Operating Data:
       Transactions processed                          56,788         24,245
 
 
 
                            CyberSource Corporation
                          Consolidated Balance Sheets
                                 (In thousands)
 
                                                     March 31,   December 31,
                                                       2001          2000
                                                            (unaudited)
 
         Assets
 
     Current assets:
       Cash, cash equivalents and
        short-term investments                        $79,996        $92,003
       Accounts receivable, net                         7,283          8,689
       Prepaid expenses and other current assets        1,607          1,733
         Total current assets                          88,886        102,425
 
     Intangible assets                                124,251        136,570
     Property and equipment, net                       20,077         21,554
     Investment in joint venture                          454            560
     Other noncurrent assets                              611            746
         Total assets                                $234,279       $261,855
 
         Liabilities and Stockholders' Equity
 
     Current liabilities:
       Accounts payable                                  $878         $1,108
       Other accrued liabilities                        8,803          9,922
       Deferred revenue                                 3,255          3,312
       Current obligations under capital leases           267            415
         Total current liabilities                     13,203         14,757
 
     Noncurrent obligations under capital leases            4             65
 
     Total stockholders' equity                       221,072        247,033
         Total liabilities and
          stockholders' equity                       $234,279       $261,855
 
 
 SOURCE  CyberSource Corporation
 
 Web site:  http: //www.cybersource.com
 
 Photo:  http: //www.newscom.com/cgi-bin/prnh/19990513/CYBRSOURCELOGO AP Archive:  http://photoarchive.ap.org PRN Photo Desk, 888-776-6555 or 201-369-3467
 
 Company News On-Call:  http: //www.prnewswire.com/comp/107369.html or fax, 800-758-5804, ext. 107369
 
 CONTACT: David Gennarelli, Director of Investor Relations of CyberSource Corporation, 650-965-6185, or dgennarelli@cybersource.com
 
 CAPTION: CYBRSOURCELOGO    CYBERSOURCE    CyberSource Company Logo. (PRNewsFoto)[KC]    SAN JOSE, CA USA    05/13/1999