S1 Corp. 4th-quarter profit rises 86 percent on improved sales, lower costs

S1 Corp. 4Q profit up 86 percent

NORCROSS, Ga. — Financial-services software provider S1 Corp. said Friday profit for the fourth quarter rose 86 percent as revenue improved and expenses fell.

The company reported net income of $9.9 million, or 18 cents per share, compared with $5.3 million, or 10 cents per share, a year earlier.

Revenue rose to $59.5 million from $58.6 million a year ago, due to higher sales in the support and maintenance division. Software license, professional services and data center revenue slipped lower.

Expenses fell to $50.7 million from $54.4 million.

Shares of S1 fell 6 cents to $6.21 in afternoon trading.

For the year, the Norcross, Ga.-based company said it earned $30.4 million, or 55 cents per share, compared with $21.9 million, or 38 cents per share, in 2008.

Revenue increased 5 percent to $238.9 million from $228.4 million.

The company completed on March 4 the $28.9 million acquisition of PM Systems Corp., a provider of internet banking, bill pay and security products for U.S. credit unions. The deal was funded from available cash.

PM Systems is expected to generate $9.6 million, in revenue net of transaction costs and other adjustments, this year.

Revenue for the year, including the PM Systems acquisition effect, is expected to be in the range of $248 million to $254 million, and earnings per share are expected to be between 51 cents and 57 cents.

CEO Johann Dreyer said market conditions will remain challenging, but global sales opportunities are expected to improve, specifically in payments and cash management products.