Slide 1: June 30, 2009 Quarterly Results
June 30, 2009 Quarterly Results August 6, 2009
Slide 2: Safe Harbor For Forward-Looking Statements
This presentation contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. The forward- looking statements are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. A discussion of these forward-loo
Slide 3: Presenters and Q&A
Phil Heasley, Chief Executive Officer Ron Totaro, Chief Operating Officer Scott Behrens, Chief Financial Officer Q&A: Phil Heasley, Ron Totaro and Scott Behrens
Slide 4: Half-year Review
Phil Heasley, Chief Executive Officer Half-year Review
Slide 5: Business Commentary
Business Commentary We are holding to full year guidance 2H 2009 has arrived with the key category improvements we've been expecting for the past 10 quarters Big American PUF renewals are behind us and now structured as ILF/annuity contracts Emphasizing predictable recurring deals Since quarter-end
Slide 6: Market Commentary
Market Commentary Market for payments share is growing, not shrinking Banks are very focused on this piece of their business model EMEA still represents our greatest absolute growth segment EMEA banks had a tougher time adjusting to the global economic crisis in Q4 2008/Q1 2009 Capital spending in E
Slide 7: Quarterly Business Review
Ron Totaro, Chief Operating Officer Quarterly Business Review
Slide 8: Q2 2009 Business Performance
Q2 2009 Business Performance Revenues essentially flat ex government mandate deal and FX $15 million variance in non-recurring deals (Faster Payments, Middle East switch) Negative foreign currency impact of ~$4 million Stronger recurring revenue over same period prior year Much stronger cash collect
Slide 9: Q2 2009 Sales Results
Q2 2009 Sales Results Q2 2009 Sales Highlights: Significant new account activity: Large new account sale in France including BASE24-eps on IBM, Payments Manager, and Proactive Risk Manager ("PRM") New accounts in AP include BASE24-eps in Vietnam and PRM in New Zealand Significant term extension acti
Slide 10: Q2 2009 Channel Sales Results
Q2 2009 Channel Sales Results Sales (net of Term Extensions) Term Extension Sales Total Sales Q2 2009 v Q2 2008 Channel Performance: Top 5 customers accounted for 35% of sales dollars in the quarter compared to 27% in Q1-09 and 25% in Q2-08 Americas: Top 5 customers accounted for $19.0 million of sa
Slide 11: Historic Sales By Quarter 2008-2009
Historic Sales By Quarter 2008-2009 Historic Sales By Quarter 2008-2009
Slide 12: Channel Summary
Channel Summary Americas Monthly recurring revenue rise of $2.1 million or 6% compared to prior-year and $1.0 million or 3% compared to March quarter Experienced 6th consecutive quarter of service bill rates increases since implementing new pricing strategies Protected revenue base with strategic re
Slide 13: Product & Development Summary
Product & Development Summary Delivered 2 major Beta product enhancement releases to customers in Q2-09 Enterprise Banker (EB) 7.5 Automated Case Manager (ACM) 2.0 Implemented first deployment of Proactive Risk Manager (PRM) on IBM System z using DB2 and Websphere MQ for a customer in Asia- Pacific
Slide 14: Financial Review
Financial Review Scott Behrens, Chief Financial Officer
Slide 15: Key Takeaways from the Quarter
Key Takeaways from the Quarter Sales: Down slightly versus prior-year second quarter Term extensions offset weakness in new application and account sales Revenue: Achieved $87.2 million in the current quarter versus $109.2 million in Q2-08 quarter, represented a flat performance on Q1-09 Q2-08 reven
Slide 16: Takeaways from the Quarter (cont)
Takeaways from the Quarter (cont) Operating Expenses: Decreased $17.6 million (16%) versus prior-year quarter Other Income and Expense: ~ $3.7 million negative versus a gain of $2.0 million in Q2-08 FX loss stood at $4.3 million whereas the swap loss narrowed to $0.3 million compared to FX loss of $
Slide 17: Backlog is Still a Significant Contributor to Revenue
Backlog is Still a Significant Contributor to current period Revenue Mix of revenue from sales vs backlog was similar to prior year Some diminution in the dollar amount of revenue from sales due to term renewals deal size and lack of significant capacity event in Q2-09 Prior year included backlog re
Slide 18: Re-affirmation of Guidance
Re-affirmation of Guidance Currently expect sales, revenue and GAAP Operating Income on the lower end of the guidance range Fourth quarter sales and revenue generation anticipated to be more significant than Q3 Q4 revenues will include ~$15 million of annual license fee revenues Q3-Q4 sales phasing
Slide 19: Appendix
Appendix
Slide 20: Operating Free Cash Flow
Operating Free Cash Flow ($ millions) Quarter Ended June 30, Quarter Ended June 30, 2009 2008 Net cash provided by operating activities* $16.6 $ (3.4) Adjustments: Less capital expenditures (1.1) (6.0) Less alliance Technical enablement expenditures (1.9) (1.5) Operating Free Cash Flow $13.6 $(10.9)
Slide 21: 60-Month Backlog
60-Month Backlog ($ millions) Quarter Ended Quarter Ended Quarter Ended June 30, 2009 March 31, 2009 June 30, 2008 Americas $817 $791 $744 EMEA 504 466 534 Asia/Pacific 155 153 159 Backlog 60-Month $1,476 $1,410 $1,437 ACI Deferred Revenue $140 $137 $144 ACI Other 1,336 1,273 1,293 Backlog 60-Month
Slide 22: Revenues by Channel
Revenues by Channel ($ millions) Quarter Ended June 30, Quarter Ended June 30, 2009 2008 Revenues: United States $34.6 $40.2 Americas International 11.6 12.3 Americas 46.2 52.5 EMEA 29.7 46.9 Asia/Pacific 11.2 9.8 Revenues $87.2 $109.2
Slide 23: Monthly Recurring Revenue
Monthly Recurring Revenue ($ millions) Quarter Ended June 30, Quarter Ended June 30, 2009 2008 Monthly license fees $17.5 $17.8 Maintenance fees 33.3 32.9 Processing Services 9.0 7.6 Monthly Recurring Revenue $59.8 $58.3
Slide 24: Deferred Revenue & Expense
Deferred Revenue & Expense ($ millions) Quarter Ended Quarter Ended Quarter Ended Quarter Ended March 31, March 31, June 30, 2009 2009 June 30, 2008 2008 Short Term Deferred Revenue $107.7 $111.5 123.0 $137.3 Long Term Deferred Revenue 32.4 25.7 23.1 20.3 Total Deferred Revenue $140.1 $137.2 $146.1
Slide 25: Non-Cash Compensation and Acquisition Intangibles
Non-Cash Compensation and Acquisition Intangibles Quarter ended June 30, 2009 Quarter ended June 30, 2009 Quarter ended June 30, 2008 Quarter ended June 30, 2008 EPS Impact* $ in Millions EPS Impact* $ in Millions Amortization of acquisition-related intangibles and software 0.05 1.9 0.06 2.0 Non-cas
Slide 26: Other Income / Expense
Other Income / Expense ($ millions) Quarter Ended Quarter Ended Quarter Ended Quarter Ended June 30, 2009 March 31, 2009 June 30, 2008 March 31, 2008 Interest Income $0.4 $0.3 $0.7 $0.6 Interest Expense (0.5) (0.8) (1.0) (1.4) FX Gain / Loss (4.3) (0.7) (0.7) 3.7 Interest Rate Swap Loss (0.3) (0.4)
Slide 27: Sales by Channel and Product Division
Sales by Channel and Product Division ($ millions) Quarter Ended Quarter Ended Quarter Ended Quarter Ended Quarter Ended June 30, 2009 March 31, 2009 December 31, 2008 September 30, 2008 June 30, 2008 Sales by Channel: Americas $43.8 $38.9 $119.6 $46.8 $49.9 EMEA 44.7 17.4 47.1 53.0 42.4 Asia Pacifi
Slide 28: Reclassification Recast
Reclassification Recast The Company redefined its cost of software license fees in order to better conform to industry practice. The definition has been revised to be third-party software royalties as well as the amortization of purchased technology. Previously, cost of software license fees also in
Slide 29: Non-GAAP Financial Measures
Non-GAAP Financial Measures ACI is presenting operating free cash flow, which is defined as net cash provided (used) by operating activities less capital expenditures and plus or minus net proceeds from IBM. Operating free cash flow is considered a non-GAAP financial measure as defined by SEC Regula
Slide 30: Non-GAAP Measures and Backlog Estimates
Management generally compensates for limitations in the use of non-GAAP financial measures by relying on comparable GAAP financial measures and providing investors with a reconciliation of non-GAAP financial measures only in addition to and in conjunction with results presented in accordance with GA
Slide 31: Backlog estimates are inherently unreliable
Estimates of future financial results are inherently unreliable. Our backlog estimates require substantial judgment and are based on a number of assumptions as described above. These assumptions may turn out to be inaccurate or wrong, including for reasons outside of management's control. For exampl
Slide 32: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. Generally, forward-looking statements do not relate strictly to historical or current facts and may include words or phrases such as "belie
Slide 33: MNGi
MNGi EVERY SECOND. EVERY DAY.