Aci Worldwide, Inc. · NASDAQ:ACIW
Aci Worldwide — Q1 2009 Earnings Presentation
34 slides from Aci Worldwide's earnings presentation, May 6, 2009
Slide 1: March 31, 2009 Quarterly Results
March 31, 2009 Quarterly Results May 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- lo
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: Business Review
Ron Totaro, Chief Operating Officer Business Review
Slide 5: Q1 2009 Update
Q1 2009 Update Very similar business performance to prior year Revenue and sales mirrored Q1-08 Pipeline for Q2 and beyond robust Sales of $61 million, down $3 million versus Q1-08 sales Demonstrated market interest in our products as evidenced by more sales of new accounts than in March 2008 quarte
Slide 6: Q1 2009 Sales Results
Q1 2009 Sales Results Q1 2009 had strong new account sales performance compared to prior year but fewer term extensions as a result of timing Weaker than anticipated sales in EMEA as sales processes were impacted by bank nationalizations and later budgetary cycles at many big European banks, a lot o
Slide 7: Q1 2009 Channel Sales Results
Q1 2009 Channel Sales Results Sales (net of Term Extensions) Term Extension Sales Total Sales Q1 2009 v Q1 2008 Channel Performance: Americas ... Top 5 customers accounted for $16.3 million of sales in Q1- 09 vs. $5.9 million of sales in Q1- 08. Americas strong sales driven by two major renewals (in
Slide 8: Historic Sales By Quarter 2008-2009
Historic Sales By Quarter 2008-2009 Historic Sales By Quarter 2008-2009
Slide 9: Americas Q1 2009 Highlights
Americas Q1 2009 Highlights Revenue Performance Y-o-Y: Americas Q1-09 revenue of $49.9 million was up ~$6 million vs. Q1-08 Growth in monthly recurring revenues of $2.5 million Implementation Services Fees increased $2.5 million MasterCard Standard Chartered Bank Key Sales Highlights Total Channel s
Slide 10: EMEA Q1 2009 Highlights
EMEA Q1 2009 Highlights Revenue Performance Y-o-Y: EMEA Q1-09 revenue of $29.0m, down ~ $8 million versus Q1-08 License fees declined on an FX-adjusted basis due to a capacity deal of $4.2 million recognized in the prior-year quarter Services and maintenance revenue showed strong growth in Q1-09 Key
Slide 11: Asia-Pacific Q1 2009 Highlights
Asia-Pacific Q1 2009 Highlights Revenue Performance Y-o-Y: Asia Pacific Q1-09 revenue of $9.3 million essentially flat versus prior- year quarter Key Sales Highlights Q1-09 Sales $4.6 million vs. $14.0 million in prior year driven by Prior year sales of large wholesale contracts in Korea and in Mala
Slide 12: Organization Update
Organization Update Product Management Organization New Chief Product Officer building out his organization Rolling out general managers by product Services Organization New heads in Asia and in EMEA now in place (March 09) Assessing services operations- rates, utilization and billed expenses as wel
Slide 13: Financial Review
Financial Review Scott Behrens, Chief Financial Officer
Slide 14: Key Takeaways from the Quarter
Key Takeaways from the Quarter Revenue reduction of 3%; achieved $88.2 million in the current quarter versus $90.7 million in March 2008 quarter Strengthening of US $ resulted in ~$6 million decline in global revenue Revenue decrease in initial software license fees linked to terms/capacity Continui
Slide 15: Takeaways from the Quarter (cont)
Takeaways from the Quarter (cont) OFCF was impacted by decrease in cash receipts Timing of ~ $6 million in trade receivables Expenses decreased $2.4 million versus prior- year quarter primarily due to: Approximately $8 million FX benefit Approximately $4 million in restructuring benefit $5 million i
Slide 16: Expense Walk Q1 2008 to Q1 2009
Expense Walk Q1 2008 to Q1 2009 Professional fees of approximately $2.6 million were related to: Recruitment fees Consulting fees related to operational process improvement Professional legal and audit fees related to the Q1 2008 restatement Professional legal and audit fees related to the Q1 2008 r
Slide 17: Backlog is Still a Significant Contributor to Current Period Revenue
Backlog is Still a Significant Contributor to current period Revenue Similar to Q1-08, revenue derived primarily from backlog Sold smaller number of term extensions versus prior-year quarter as customer accounts expiring in Q2 did not sign early 60-month backlog contribution to revenue relatively co
Slide 18: Enhanced Operating Expense Presentation
Enhanced Operating Expense Presentation Cost of Software redefined as amortization of purchased technology AND third party product royalties Definition now in sync with industry standards Product Management costs reclassified primarily to R&D Depreciation & Amortization (except for purchased technol
Slide 19: Re-affirmation of Guidance
Re-affirmation of Guidance Phasing is consistent with what we expected upon announcement of Q4 and annual guidance in February Do not currently anticipate any change in guidance Expect Q2 sales figures to comfortably exceed prior year Q2 sales of $99.9 million Q2 sales of $99.9 million Q2 sales of $
Slide 20: Appendix
Appendix
Slide 21: Operating Free Cash Flow
Operating Free Cash Flow ($ millions) Quarter Ended March 31, Quarter Ended March 31, 2009 2008 Net cash provided by operating activities* $2.8 $ 46.5 Adjustments: Net after-tax cash payments associated with employee-related actions 1.6 0.5 Early termination of facility 0.0 0.6 Less capital expendit
Slide 22: 60-Month Backlog
60-Month Backlog ($ millions) Quarter Ended Quarter Ended Quarter Ended March 31, December 31, March 31, 2009 2008 2008 Americas $791 $771 $730 EMEA 466 480 523 Asia/Pacific 153 156 154 Backlog 60-Month $1,410 $1,407 $1,408 ACI Deferred Revenue $137 $124 $137 ACI Other 1,273 1,282 1,271 Backlog 60-M
Slide 23: Revenues by Channel
Revenues by Channel ($ millions) Quarter Ended March 31, Quarter Ended March 31, 2009 2008 Revenues: United States $36.3 $32.7 Americas International 13.6 11.3 Americas $49.9 $44.0 EMEA 29.0 37.3 Asia/Pacific 9.3 9.4 Revenues $88.2 $90.7
Slide 24: Monthly Recurring Revenue
Monthly Recurring Revenue ($ millions) Quarter Ended March 31, Quarter Ended March 31, 2009 2008 Monthly license fees $17.7 $16.8 Maintenance fees 31.4 31.4 Processing Services 8.3 8.1 Monthly Recurring Revenue $57.4 $56.3
Slide 25: Deferred Revenue & Expense
Deferred Revenue & Expense ($ millions) Quarter Ended Quarter Ended Quarter Ended Quarter Ended March 31, December 31, March 31, December 31, 2009 2008 2008 2007 Short Term Deferred Revenue $111.5 $99.9 $137.3 $115.5 Long Term Deferred Revenue $25.7 $24.3 $20.3 $27.3 Total Deferred Revenue $137.2 $1
Slide 26: Non-Cash Compensation, Acquisition Intangibles and Non-Recurring Items
Non-Cash Compensation, Acquisition Intangibles and Non-Recurring Items Quarter ended March 31, 2009 Quarter ended March 31, 2009 Quarter ended March 31, 2008 Quarter ended March 31, 2008 Non-recurring items EPS Impact* $ in Millions EPS Impact* $ in Millions Employee Related Non-recurring items $0.0
Slide 27: Other Income / Expense
Other Income / Expense ($ millions) Quarter Ended Quarter Ended Quarter Ended Quarter Ended March 31, 2009 December 31, 2008 March 31, 2008 December 31, 2007 Interest Income $0.3 $0.7 $0.6 $0.8 Interest Expense (0.8) (1.5) (1.4) (1.4) FX Gain / Loss (0.7) 9.3 3.7 1.9 Interest Rate Swap Loss (0.4) (4
Slide 28: Sales by Channel and Product Division
Sales by Channel and Product Division ($ millions) Quarter Ended Quarter Ended Quarter Ended Quarter Ended Quarter Ended March 31, 2009 December 31, 2008 September 30, 2008 June 30, 2008 March 31, 2008 Sales by Channel: Americas $38.9 $119.6 $46.8 $49.9 $19.2 EMEA 17.4 47.1 53.0 42.4 30.6 Asia Pacif
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, excluding cash payments associated with one-time employee related actions, cash payments associated with early termination of leases, less capital expenditure
Slide 30: Limitations of Non-GAAP Financial Measures and Backlog
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: Reclassification and Trademarks
Reclassification and Trademarks 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
Slide 33: 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 34: NMI
NMI EVERY SECOND. EVERY DAY.