S1 Climbs Despite Q4 Loss

Internet banking software firm S1 (Nasdaq: SONE) rose to US$8, up $1.06 or 15.3 percent, in early Wednesday trading, even after the company reported a loss for the fourth quarter 2000.

S1 said it expects first-quarter 2001 revenue of $60 million to $63 million, withfull-year revenue of $275 million to $285 million. The company also said it “remains committed” to reaching a profit this year, before interest, taxes,depreciation and amortization.

After charges for acquisitions and other items, the company ended up with afourth-quarter net loss of $813.4 million, or $14.45 per share, comparedwith a loss of $117.0 million, or $3.05, a year earlier. The loss beforeextraordinary items totaled $27.9 million, or 50 cents per share.

Revenuerose 49 percent from a year earlier, to $60.1 million.

Chief executive officer Jaime Ellertson said the results reflect actionstaken to focus on the company’s key strengths. The “new sharper focus,” Ellertson said, “will be instrumental to meeting our strategic business objectives, includingreaching EBITDA profitability during 2001.”

Still, the loss was bigger than predictedby the company a month ago.

S1 said results for the quarter include charges of about $6 million for the”sunsetting” of the company’s Edify retail banking program, $3 million forthe consolidation of technology systems, $2 million for the merger of thecompany’s VerticalOne unit, $1.5 million for the opening of a new datacenter, and $1.5 million for a management reorganization.

Software license revenue fell 9 percent from a year earlier to $11.1million, while professional services revenue rose 77 percent to $40.6million. Data center revenue of $8.2 million was 156 percent ahead of a yearearlier.

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