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Guidance for the first quarter and full fiscal year 2007:
CyberSource is providing guidance for the first quarter of 2007 and for the full fiscal year 2007 based on information available as of January 25, 2007.
• For the first quarter ending March 31, 2007: Total revenue is expected to be $20.6 million. Transaction and support revenue is expected to be $19.3 million, of which $0.4 million is expected from BidPay. Enterprise software revenue is expected to be $0.6 million and professional services revenue is expected to be $0.7 million. The company expects to process between 245 and 250 million transactions in the first quarter. GAAP gross profit is expected to be $9.3 million, while GAAP operating expenses are expected to be $10.4 million. The company expects to record a GAAP net loss for the first quarter of $0.3 million or ($0.01) per share based on a weighted average share count of 37 million shares. Non-GAAP net income for the first quarter is expected to be $1.4 million and non-GAAP earnings per share is expected to be $0.04 based on a weighted average share count of 37 million shares.
• For the full year 2007: Total revenue is expected to be between $90 and $95 million, GAAP gross profit is expected to be between $44 and $46 million, and GAAP operating expenses are expected to be between $40 and $43 million. GAAP net income for 2007 is expected to be between $3.5 and $4 million or $0.09 to $0.11 per share. GAAP earnings per share is based on a weighted average share count of 38 million shares. Guidance does not take into account any further reductions in the company`s valuation allowance against its deferred tax asset, which would result in a tax benefit during the period of the reduction. CyberSource will continue to evaluate whether a further reduction is appropriate. Non-GAAP net income for the full year 2007 is expected to be between $13.5 and $14.5 million or $0.36 to $0.38 per share. Non-GAAP earnings per share is based on a weighted average share count of 38 million shares.
Public call/web cast details
CyberSource will host a public conference call today, January 25, 2007 at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss the fourth quarter and fiscal year results. The call can be accessed in 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 February 4, 2007.
Live conference call
Dial 888-542-8515 (U.S. and Canada) 706-634-2163 (International). The call`s ID number is: 5779846.
A taped replay of this call will be available through February 4, 2007. The dial-in numbers for the taped replay are 800-642-1687 (U.S.) 706-645-9291 (local or international). The call`s ID number is 5779846.
About CyberSource
CyberSource Corporation is a leading provider of electronic payment and risk management solutions. CyberSource solutions enable electronic payment processing for Web, call center, and POS environments. CyberSource also offers industry leading risk management solutions for merchants accepting card-not-present transactions. CyberSource Professional Services designs, integrates, and optimizes commerce transaction processing systems. Over 18,000 businesses use CyberSource solutions, including half the companies comprising the Dow Jones Industrial Average. The company is headquartered in Mountain View, California, and has sales and service offices in Japan, the United Kingdom, and other locations in the United States. For more information, please visit CyberSource`s web site at www.cybersource.com or email info@cybersource.com.
GAAP versus non-GAAP Results and Guidance
In addition to financial results presented on a GAAP basis, the company has provided non-GAAP measures of gross profit, operating expenses, net income and earnings per share, which are adjusted to exclude certain non-cash items. For purposes of this release, non-GAAP gross profit, operating expenses, net income and earnings per share exclude stock based compensation expense under SFAS 123R, the non-cash portion of the income tax provision, a reduction in the tax allowance, depreciation and amortization expense, and other non-recurring charges and income. A reconciliation of the historical GAAP to non-GAAP measures is attached with the financial statements. The company believes that presentation of non-GAAP financial measures may provide investors with additional meaningful and relevant financial information. Management believes the non-GAAP measures help indicate trends in the company`s business, and management uses the non-GAAP measures to plan and forecast future periods. Non-GAAP information is not determined using GAAP and should not be considered superior to or as a substitute for GAAP measures or data prepared in accordance with GAAP. Furthermore, non-GAAP information may not be comparable across companies, as other companies may use different non-GAAP measures. The company does not provide guidance for certain financial measures such as depreciation and stock-based compensation expense and as a result, is not able to provide a reconciliation of GAAP and Non-GAAP financial measures for forward-looking data. The company intends to calculate the various Non-GAAP financial measures in future periods consistent with the methodology used in the three and twelve months ended December 31, 2006, as presented in this release.
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