S1 Corporation, a global provider of Internet-based solutions to the financial services industry, reported a loss for the year to end-December of $72.9 million before interest, tax, depreciation and amortisation.
This compares with a loss of $10.3 million for the 1999 financial year.
S1's clients include First National Bank of Southern Africa, E-Trade, the New York Stock Exchange, Chase Manhattan Bank, Bank of America, Commonwealth Bank of Australia, Deutsche Bank, JP Morgan and Merrill Lynch International Bank.
S1 Corporation SA established a strategic alliance with Andersen Consulting, now Accenture, in July last year.
Fourth quarter losses are in line with the group's expectations, which it announced in January.
Total revenue for the fourth quarter amounted to $60.1 million, 49% higher than the $40.4 million in the last quarter of 1999, with annual revenue increasing 152% from $92.9 million to $233.9 million.
A fourth-quarter loss of $27.9 million (or $0.50 per share) before interest, tax, depreciation and amortisation compares with a year-earlier loss of $7.2 million ($0.19 per share).
The group incurred a net loss of $813.4 million, or $14.45 a share, for the fourth quarter. The group says this includes a one-off non-cash charge of $778.4 million related to the impairment of certain acquisition-related intangibles.
The loss compares with a net loss of $117 million or $3.05 per share a year earlier.
The annual net loss amounted to $1.18 billion, compared with a year-earlier loss of $125.1 million.
"The fourth quarter results we are announcing today reflect the impact of a number of initiatives we have undertaken to introduce greater operational efficiencies into the business and more effectively position ourselves and our customers for long-term success," says CEO Jaime Ellertson.
"The steps we have taken are part of a clear, aggressive action plan to focus our strengths on high-potential opportunities within our core business units."
He adds that the sharper focus will be key to the group's meeting its business goals, including reaching profitability on the EBITDA (earnings before interest, tax, depreciation and amortisation) level this year.
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