Global e-finance solutions and services provider S1 Corporation says it is expecting to report a net loss of between $318 million and $371 million for the fourth quarter of its financial year.
The market punished the S1 share, which closed 16.13% down on the Nasdaq at $6.50 yesterday after almost 2.12 million shares changed hands. It traded as low as $5.8125 during the day.
S1, which services mainly banks, online brokerages, financial services and insurance companies, counts among its customers online trading company E*Trade, which entered the South African market last year; ABN Amro Bank, and First National Bank of Southern Africa.
The Internet banking group's CEO, Jamie Ellertson, says the bottom line was hurt by efforts to improve efficiency.
"The fourth quarter results, while disappointing, are the result of our efforts to introduce greater operational efficiencies into the business and more effectively position ourselves and our customers for long-term success in this rapidly evolving market," he says.
Revenue is expected to be between $60 million and $60.5 million, while a $25 million to $28 million loss before interest, taxation, depreciation and amortisation is anticipated.
The net loss amounts to $5.64 to $6.58 a share.
Meanwhile, Yodlee.com, a worldwide provider of aggregation services, has completed its deal to acquire VerticalOne Corporation, formerly a wholly owned S1 subsidiary, creating a single, global technology aggregation platform under the Yodlee name.
S1 will receive an approximately 32% stake in Yodlee.
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