ACI Worldwide, Inc. Reports Financial Results for the Quarter and Year Ended December 31, 2012

  ACI Worldwide, Inc. Reports Financial Results for the Quarter and Year Ended
  December 31, 2012

OPERATING HIGHLIGHTS

  *Strong revenue, up 66% over prior year quarter and 45% sequentially over
    Q3
  *Strong sales bookings across all geographies, up 81% over prior year
    quarter and 61% sequentially over Q3
  *Non-GAAP Operating Income and Adjusted EBITDA growth rate of 108% and 95%,
    respectively, over prior year quarter
  *Full year non-GAAP diluted EPS of $2.10, an increase of 43% over prior
    year

Business Wire

NAPLES, Fla. -- February 28, 2013

ACI Worldwide, Inc. (NASDAQ:ACIW), a leading international provider of payment
systems, today announced financial results for the period ended December 31,
2012. Management will host a conference call at 8:30 am EST to discuss these
results as well as 2013 guidance. Interested persons may access a real-time
audio broadcast of the teleconference at www.aciworldwide.com/investors or use
the following numbers for dial in participation: US/Canada: (866) 914-7436,
International/Local: +1 (817) 385-9117. Please provide your name, the
conference name ACI Worldwide, Inc. and conference code 98146721. There will
be a replay available for two weeks on (855) 859-2056 for US/Canada Dial-In
and +1 (404) 537- 3406 for International/Local Dial-In participants.

“We closed out a transitional 2012 with record revenues, sales bookings and
earnings,” said Chief Executive Officer Philip Heasley. “With the S1
integration substantially complete, we are excited to enter 2013 well
positioned to accelerate our growth objectives. Further, the proposed
acquisition of Online Resources will add a highly strategic electronic bill
payment platform to the ACI suite of products, enabling us to be the Universal
Payments Platform company”, continued Mr. Heasley.

FINANCIAL SUMMARY

Sales

Sales bookings in the quarter totaled $309 million, an increase of $138
million, or 81%, over prior year quarter. Sales net of term extensions in the
quarter totaled $198 million, an increase of $81 million, or 69%, over the
prior-year quarter. S1 contributed $81 million to sales in the quarter.
Historical ACI sales increased $57 million, or 33%, over prior year quarter
sales bookings of $171 million.

For the year 2012, sales totaled $766 million, an increase of $210 million, or
38%, as compared with $556 million last year. S1 contributed $189 million to
sales for the year.

Backlog

60-month backlog increased $49 million in the quarter to $2.416 billion as
compared to $2.367 billion as of September 30, 2012. 12-month backlog
increased $12 million to $596 million as compared to $584 million at September
30, 2012.

Revenue

GAAP revenue increased to $224.1 million, an increase of $89.1 million, or
66%, over prior-year quarter. Historical ACI revenue increased $40.7 million,
or 30%, and S1 contributed $48.4 million of revenue in the fourth quarter.
Non-GAAP revenue was $227.7 million, an increase of $92.7 million, or 69%,
over prior year quarter. Non-GAAP revenue excludes the impact of $3.6 million
of deferred revenue that would have been recognized in the normal course of
business by S1 but was not recognized due to GAAP purchase accounting
requirements.

Revenue for the full year 2012 was $666.6 million, an increase of $201.5
million, or 43%. Historical ACI revenue increased $39.6 million, or 8.5%, and
S1 contributed $161.9 million of revenue to the full year. Non-GAAP revenue
was $689.0 million, an increase of $223.9 million, or 48%, over prior year.

Operating Expenses

Excluding $4.4 million and $3.2 million of S1 acquisition related one-time
expenses incurred in the quarters ended December 31, 2012 and 2011,
respectively, operating expenses increased $49.3 million compared to the prior
year quarter primarily due to the addition of $42.7 million of S1 operating
expenses, inclusive of $4.0 million of intangibles amortization. Total GAAP
operating expenses for the quarter were $148.6 million.

Excluding $31.5 million and $6.7 million of S1 acquisition related one-time
expenses incurred in the years ended December 31, 2012 and 2011, respectively,
operating expenses increased of $168.6 million, or 43%, primarily from the
addition of $159 million of S1 operating expenses, inclusive of $13.9 million
of intangible amortization. Total GAAP operating expenses were $592.2 for the
full year 2012. Historical ACI operating expense growth was led primarily by
higher deferred cost recognition upon project go-lives.

Operating Income

Consolidated GAAP operating income was $75.5 million for the quarter. Non-GAAP
operating income totaled $83.6 million, an increase of $43.4 million, or 108%,
above the prior-year quarter. Non-GAAP operating income excludes the $3.6
million deferred revenue adjustment due to purchase accounting as well as the
impact of $4.4 million of acquisition-related one-time expenses.

Operating income for the full year 2012 was $74.4 million, versus $66.2
million for the full year 2011. Excluding the $22.5 million deferred revenue
adjustment due to purchase accounting as well as the impact of $31.5 million
of acquisition-related one-time expenses, operating income increased $55.4
million, or 76%, to $128.3 million.

Adjusted EBITDA

Adjusted EBITDA increased to $101.1 million, an improvement of $49.2 million,
or 95%, compared to the prior year quarter. Adjusted EBITDA excludes the
impact of $3.6 million of deferred revenue that would have been recognized in
the normal course of business by S1 but was not recognized due to GAAP
purchase accounting requirements and $4.4 million of acquisition related
one-time expenses.

Full year 2012 Adjusted EBITDA was $191.4 million, an increase of $78.9
million, or 70%, as compared to $112.6 million for full year 2011.

Liquidity

We ended the year with $76.3 million in cash on hand as of December 31, 2012.
During the quarter, we repaid $20.7 million in refundable liability to IBM
upon termination of our Alliance and $10.4 million in debt. We ended the
quarter with a debt balance of $374.3 million. As of December 31, 2012, we had
up to $62 million of unused borrowings under our Revolving Credit Facility.

Operating Free Cash Flow

Operating free cash flow (“OFCF”) for the quarter and full year 2012 was $23.6
million, and $23.5 million, respectively, both impacted by back-end timing of
sales bookings and revenue during the year. OFCF for the quarter and full year
2011 was $30.0 million, and $67.2 million, respectively

Other Expense

Other expense for the quarter was $1.5 million, an increase of $0.5 million as
compared to other expense of $1.0 million in the prior-year quarter.

Other expense for the full year 2012 was $9.1 million as compared to other
expense of $1.9 million for the full year 2011. The increase was primarily the
result of $8.0 million of increased interest expense due to increased
borrowings partially offset by a gain of $1.6 million on the shares of S1
stock previously held as available-for-sale.

Taxes

Income tax expense in the quarter was $24.3 million, or a 33% effective tax
rate, compared to income tax expense of $12.1 million, or a 34% effective tax
rate in the prior year quarter. Income tax expense for the year ended December
2012 was $16.4 million, or a 25% effective tax rate, as compared to $18.5
million, or a 29% effective tax rate, for the prior year ended December 2011.
The year-over-year decrease in the effective tax rate was largely due to the
mix of lower domestic earnings at the U.S. tax rate offset by higher foreign
income at lower tax rates.

Net Income and Diluted Earnings Per Share

Net income for the quarter ended December 31, 2012 was $49.7 million, compared
to net income of $23.9 million during the same period last year.

GAAP earnings per share for the quarter was $1.24 per diluted share compared
to $0.70 per diluted share during the same period last year. Excluding the
tax-adjusted impact of $4.4 million of S1 acquisition related one-time
expenses and the impact of $3.6 of million deferred revenue that would have
been recognized in the normal course of business by S1 but was not recognized
due to GAAP purchase accounting requirements, earnings per share was $1.37 per
diluted share, versus $0.76 per share last year, up 81%.

GAAP earnings per share for the year ended December 2012 was $1.22 compared to
$1.34 per diluted share for the year ended December 2011. Excluding the
tax-adjusted impact of $31.5 million of S1 acquisition related one-time
expenses and the impact of $22.5 of million deferred revenue that would have
been recognized in the normal course of business by S1 but was not recognized
due to GAAP purchase accounting requirements, earnings per share was $2.10 per
diluted share, versus $1.47 per share last year, up 43%.

Weighted Average Shares Outstanding

Total diluted weighted average shares outstanding were 39.9 million for the
year ended December 31, 2012 as compared to 34.2 million shares outstanding
for the year ended December 31, 2011. The number of weighted average shares
outstanding was increased by 5.9 million due to the issuance of shares related
to the acquisition of S1 Corporation.

2013 Guidance

ACI is guiding on three metrics for calendar year 2013. On an organic basis,
we currently expect to achieve revenue in a range of $765-$785 million,
operating income of $150-$160 million and Adjusted EBITDA of $230-$240
million.

About ACI Worldwide

ACI Worldwide powers electronic payments and banking for more than 1,750
financial institutions, retailers and processors around the world. ACI
software enables $13 trillion in payments each day, processing transactions
for more than 250 of the leading global retailers, and 18 of the world’s 20
largest banks. Through our integrated suite of software products and hosted
services, we deliver a broad range of solutions for payments processing, card
and merchant management, online banking, mobile, branch and voice banking,
fraud detection, and trade finance. To learn more about ACI and the reasons
why our solutions are trusted globally, please visit www.aciworldwide.com. You
can also find us on www.paymentsinsights.comor on Twitter@ACI_Worldwide.

Non-GAAP Financial Measures

ACI Worldwide, Inc.
Reconciliation of Selected GAAP Measures to Non-GAAP Measures (1)
(unaudited and in thousands, except per share data)
                                                                                                                  
                     FOR THE THREE MONTHS ENDED DECEMBER 31,
                     2012                            2012            2011                            2011
                     GAAP          Adjustments   Non-GAAP      GAAP          Adjustments   Non-GAAP      $ Diff       % Diff
                                                                                                                                    
Revenues: (2)                                                                                                  
Total revenues       $ 224,095    $  3,635     $ 227,730    $ 135,037    $  -         $ 135,037    $ 92,693      69   %
                                                                                                                                    
Expenses:
Cost of
software               6,968            -              6,968           4,077            -              4,077           2,891        71   %
license fees
Cost of
maintenance,           53,502           -              53,502          27,445           -              27,445          26,057       95   %
services and
hosting fees
Research and           33,586           -              33,586          20,781           -              20,781          12,805       62   %
development
Selling and            22,730           -              22,730          20,023           -              20,023          2,707        14   %
marketing
General and
administrative         21,616           (4,430 )       17,186          20,191           (3,200 )       16,991          195          1    %
(3)
Depreciation
and                   10,158       -          10,158      5,477        -          5,477       4,681     85   %
amortization
Total expenses        148,560      (4,430 )    144,130     97,994       (3,200 )    94,794      49,336    52   %
                                                                                                                                    
Operating              75,535           8,065          83,600          37,043           3,200          40,243          43,357       108  %
income
                                                                                                                                    
Other income
(expense):
Interest               209              -              209             676              -              676             (467   )     -69  %
income
Interest               (3,031  )        -              (3,031  )       (1,008  )        -              (1,008  )       (2,023 )     201  %
expense
Other, net            1,298        -          1,298       (714    )     -          (714    )    2,012     -282 %
Total other
income                (1,524  )     -          (1,524  )    (1,046  )     -          (1,046  )    (478   )   46   %
(expense)
                                                                                                                                    
Income before          74,011           8,065          82,076          35,997           3,200          39,197          42,879       109  %
income taxes
Income tax            24,347       2,823      27,170      12,106       1,120      13,226      13,944    105  %
expense (4)
Net income           $ 49,664     $  5,242     $ 54,906     $ 23,891     $  2,080     $ 25,971     $ 28,935    111  %
                                                                                                                                    
Depreciation
and                    13,948           -              13,948          7,035            -              7,035           6,913        98   %
amortization
Stock-based            3,525            -              3,525           4,563            -              4,563           (1,038 )     -23  %
compensation
                                                                                                               
Adjusted             $ 93,008     $  8,065     $ 101,073    $ 48,641     $  3,200     $ 51,841     $ 49,232    95   %
EBITDA
                                                                                                                                    
Earnings per
share
information
Weighted
average shares
outstanding
Basic                  39,393           39,393         39,393          33,564           33,564         33,564
Diluted                40,055           40,055         40,055          34,232           34,232         34,232
                                                                                                                                    
Earnings per
share
Basic                $ 1.26          $  0.13         $ 1.39          $ 0.71          $  0.06         $ 0.77          $ 0.62         80   %
Diluted              $ 1.24          $  0.13         $ 1.37          $ 0.70          $  0.06         $ 0.76          $ 0.61         81   %
                                                                                                                                    

      This presentation includes non-GAAP measures. Our non-GAAP measures are
(1)  not meant to be considered in isolation or as a substitute for
      comparable GAAP measures, and should be read only in conjunction with
      our consolidated financial statements prepared in accordance with GAAP.
      
      Adjustment for $3.6 million of deferred revenue that would have been
(2)   recognized in the normal course of business by S1 but was not recognized
      due to GAAP purchase accounting requirements.
                                           
      One-time expense related to the acquisition of S1, including, $1.3
(3)   million for facility closures, $0.2 million for employee related
      actions, and $3.0 million for other professional fees in 2012 and $3.2
      million of professional fees in 2011.
      
(4)   Adjustments tax effected at 35%.
      

ACI Worldwide, Inc.
Reconciliation of Selected GAAP Measures to Non-GAAP Measures (1)
(unaudited and in thousands, except per share data)
                                                                                                                   
                     FOR THE YEARS ENDED DECEMBER 31,
                     2012                            2012            2011                            2011
                     GAAP          Adjustments   Non-GAAP      GAAP          Adjustments   Non-GAAP      $ Diff        % Diff
                                                                                                                                     
Revenues: (2)                                                                                                   
Total revenues       $ 666,579    $ 22,461     $ 689,040    $ 465,095    $  -         $ 465,095    $ 223,945    48   %
                                                                                                                                     
Expenses:
Cost of
software               23,592          -               23,592          15,418           -              15,418          8,174         53   %
license fees
Cost of
maintenance,           202,052         -               202,052         118,866          -              118,866         83,186        70   %
services and
hosting fees
Research and           133,759         -               133,759         90,176           -              90,176          43,583        48   %
development
Selling and            87,054          -               87,054          80,922           -              80,922          6,132         8    %
marketing
General and
administrative         108,747         (31,464 )       77,283          71,425           (6,700 )       64,725          12,558        19   %
(3)
Depreciation
and                   37,003      -           37,003      22,057       -          22,057      14,946     68   %
amortization
Total expenses        592,207     (31,464 )    560,743     398,864      (6,700 )    392,164     168,579    43   %
                                                                                                                                     
Operating              74,372          53,925          128,297         66,231           6,700          72,931          55,366        76   %
income
                                                                                                                                     
Other income
(expense):
Interest               914             -               914             1,315            -              1,315           (401    )     -30  %
income
Interest               (10,417 )       -               (10,417 )       (2,431  )        -              (2,431  )       (7,986  )     329  %
expense
Other, net            399         -           399         (802    )     -          (802    )    1,201      -150 %
Total other
income                (9,104  )    -           (9,104  )    (1,918  )     -          (1,918  )    (7,186  )   375  %
(expense)
                                                                                                                                     
Income before          65,268          53,925          119,193         64,313           6,700          71,013          48,180        68   %
income taxes
Income tax            16,422      18,874      35,296      18,461       2,310      20,771      14,525     70   %
expense (4)
Net income           $ 48,846     $ 35,051     $ 83,897     $ 45,852     $  4,390     $ 50,242     $ 33,655     67   %
                                                                                                                                     
Depreciation
and                    50,781          -               50,781          28,378           -              28,378          22,403        79   %
amortization
Stock-based
compensation           15,186          (2,822  )       12,364          11,255           -              11,255          1,109         10   %
(5)
                                                                                                                
Adjusted             $ 140,339    $ 51,103     $ 191,442    $ 105,864    $  6,700     $ 112,564    $ 78,878     70   %
EBITDA
                                                                                                                                     
Earnings per
share
information
Weighted
average shares
outstanding
Basic                  38,696          38,696          38,696          33,457           33,457         33,457
Diluted                39,905          39,905          39,905          34,195           34,195         34,195
                                                                                                                                     
Earnings per
share
Basic                $ 1.26          $ 0.91          $ 2.17          $ 1.37          $  0.13         $ 1.50          $ 0.67          44   %
Diluted              $ 1.22          $ 0.88          $ 2.10          $ 1.34          $  0.13         $ 1.47          $ 0.63          43   %
                                                                                                                                          

      This presentation includes non-GAAP measures. Our non-GAAP measures are
(1)  not meant to be considered in isolation or as a substitute for
      comparable GAAP measures, and should be read only in conjunction with
      our consolidated financial statements prepared in accordance with GAAP.
      
      Adjustment for $22.5 million of deferred revenue that would have been
(2)   recognized in the normal course of business by S1 but was not recognized
      due to GAAP purchase accounting requirements.
                                           
      One-time expense related to the acquisition of S1, including, $14
(3)   million for employee related actions, $4.9 million for facility
      closures, $3.2 million for IT exit costs and $9.3 million for other
      professional fees.
                                           
(4)   Adjustments tax effected at 35%.
                                           
(5)   Accelerated stock compensation expense for terminated employees related
      to the S1 acquisition.

To supplement our financial results presented on a GAAP basis, we use the
non-GAAP measure indicated in the tables, which exclude certain business
combination accounting entries and expenses related to the acquisition of S1,
as well as other significant non-cash expenses such as depreciation,
amortization and share-based compensation, that we believe are helpful in
understanding our past financial performance and our future results. The
presentation of these non-GAAP financial measures should be considered in
addition to our GAAP results and are not intended to be considered in
isolation or as a substitute for the financial information prepared and
presented in accordance with GAAP. Management generally compensates for
limitations in the use of non-GAAP financial measures by relying on comparable
GAAP financial measures and providing investors with a reconciliation of
non-GAAP financial measures only in addition to and in conjunction with
results presented in accordance with GAAP. We believe that these non-GAAP
financial measures reflect an additional way of viewing aspects of our
operations that, when viewed with our GAAP results, provide a more complete
understanding of factors and trends affecting our business. Certain non-GAAP
measures include:

  *Non-GAAP revenue: revenue plus deferred revenue that would have been
    recognized in the normal course of business by S1 if not for GAAP purchase
    accounting requirements. Non-GAAP revenue should be considered in addition
    to, rather than as a substitute for, revenue.
  *Non-GAAP operating income: operating income (loss) plus deferred revenue
    that would have been recognized in the normal course of business by S1 if
    not for GAAP purchase accounting requirements and one-time expense related
    to the acquisition of S1. Non-GAAP operating income should be considered
    in addition to, rather than as a substitute for, operating income.
  *Adjusted EBITDA: net income (loss) plus income tax expense, net interest
    income (expense), net other income (expense), depreciation, amortization
    and non-cash compensation, as well as deferred revenue that would have
    been recognized in the normal course of business by S1 if not for GAAP
    purchase accounting requirements and one-time expense related to the
    acquisition of S1. Adjusted EBITDA should be considered in addition to,
    rather than as a substitute for, operating income.

ACI is also presenting operating free cash flow, which is defined as net cash
provided by operating activities, plus net after-tax payments associated with
employee-related actions and facility disclosures, net after-tax payments
associated with IBM IT outsourcing transition, and less capital expenditures.
Operating free cash flow is considered a non-GAAP financial measure as defined
by SEC Regulation G. We utilize this non-GAAP financial measure, and believe
it is useful to investors, as an indicator of cash flow available for debt
repayment and other investing activities, such as capital investments and
acquisitions. We utilize operating free cash flow as a further indicator of
operating performance and for planning investing activities. Operating free
cash flow should be considered in addition to, rather than as a substitute
for, net cash provided by operating activities. A limitation of operating free
cash flow is that it does not represent the total increase or decrease in the
cash balance for the period. This measure also does not exclude mandatory debt
service obligations and, therefore, does not represent the residual cash flow
available for discretionary expenditures. We believe that operating free cash
flow is useful to investors to provide disclosures of our operating results on
the same basis as that used by our management.

Reconciliation of
Operating Free        Quarter Ended December      Year Ended December 31,
Cash Flow                31,
(millions)
                         2012           2011       2012        2011
Net cash provided
(used) by                $  3.5         $ 31.2       ($9.3 )   $ 83.5
operating
activities
Net after-tax
payments
associated with             0.4             -            6.2           -
employee-related
actions
Net after-tax
payments                    1.9             -            2.7           -
associated with
lease terminations
Net after-tax
payments
associated with S1          -               3.3          8.8           3.7
related
transaction costs
Net after-tax
payments
associated with             -               -            10.2
cash settlement of
S1 options
Net after-tax
payments
associated with             0.2             0.2          0.9           0.9
IBM IT Outsourcing
Transition
Plus IBM Alliance
liability                   20.7            -            20.7          -
repayment
Less capital                (3.1  )         (3.1 )       (16.7 )       (19.0 )
expenditures
Less Alliance
technical                  -           (1.6 )    -         (1.9  )
enablement
expenditures
Operating Free           $  23.6       $ 30.0    $ 23.5     $ 67.2  
Cash Flow

ACI also includes backlog estimates, which include all software license fees,
maintenance fees and services specified in executed contracts, as well as
revenues from assumed contract renewals to the extent that we believe
recognition of the related revenue will occur within the corresponding backlog
period. We have historically included assumed renewals in backlog estimates
based upon automatic renewal provisions in the executed contract and our
historic experience with customer renewal rates.

Backlog is considered a non-GAAP financial measure as defined by SEC
Regulation G. Our 60-month backlog estimate represents expected revenues from
existing customers using the following key assumptions:

  *Maintenance fees are assumed to exist for the duration of the license term
    for those contracts in which the committed maintenance term is less than
    the committed license term.
  *License and facilities management arrangements are assumed to renew at the
    end of their committed term at a rate consistent with our historical
    experiences.
  *Non-recurring license arrangements are assumed to renew as recurring
    revenue streams.
  *Foreign currency exchange rates are assumed to remain constant over the
    60-month backlog period for those contracts stated in currencies other
    than the U.S. dollar.
  *Our pricing policies and practices are assumed to remain constant over the
    60-month backlog period.

Estimates of future financial results are inherently unreliable. Our backlog
estimates require substantial judgment and are based on a number of
assumptions as described above. These assumptions may turn out to be
inaccurate or wrong, including for reasons outside of management’s control.
For example, our customers may attempt to renegotiate or terminate their
contracts for a number of reasons, including mergers, changes in their
financial condition, or general changes in economic conditions in the
customer’s industry or geographic location, or we may experience delays in the
development or delivery of products or services specified in customer
contracts which may cause the actual renewal rates and amounts to differ from
historical experiences. Changes in foreign currency exchange rates may also
impact the amount of revenue actually recognized in future periods.
Accordingly, there can be no assurance that contracts included in backlog
estimates will actually generate the specified revenues or that the actual
revenues will be generated within the corresponding 60-month period.

Backlog should be considered in addition to, rather than as a substitute for,
reported revenue and deferred revenue.

Forward-Looking Statements

This press release contains forward-looking statements based on current
expectations that involve a number of risks and uncertainties. Generally,
forward-looking statements do not relate strictly to historical or current
facts and may include words or phrases such as “believes,” “will,” “expects,”
“anticipates,” “intends,” and words and phrases of similar impact. The
forward-looking statements are made pursuant to safe harbor provisions of the
Private Securities Litigation Reform Act of 1995.

Forward-looking statements in this press release include, but are not limited
to, statements regarding: (i) expectations that our growth objectives will
accelerate in 2013 partly as a result of the substantial completion of the S1
integration; (ii) expectations that the addition of Online Resources’
electronic bill payment platform (through our pending acquisition of Online
Resources Corporation) will enable us to be recognized as the “universal
payments platform company”; and (iii) expectations regarding 2013 financial
guidance related to revenue, operating income and adjusted EBITDA.

All of the foregoing forward-looking statements are expressly qualified by the
risk factors discussed in our filings with the Securities and Exchange
Commission. Such factors include but are not limited to, increased
competition, the performance of our strategic product, BASE24-eps, demand for
our products, restrictions and other financial covenants in our credit
facility, consolidations and failures in the financial services industry,
customer reluctance to switch to a new vendor, the accuracy of management’s
backlog estimates, the maturity of certain products, our strategy to migrate
customers to our next generation products, ratable or deferred recognition of
certain revenue associated with customer migrations and the maturity of
certain of our products, failure to obtain renewals of customer contracts or
to obtain such renewals on favorable terms, delay or cancellation of customer
projects or inaccurate project completion estimates, volatility and disruption
of the capital and credit markets and adverse changes in the global economy,
our existing levels of debt, impairment of our goodwill or intangible assets,
litigation, future acquisitions, strategic partnerships and investments, risks
related to the expected benefits to be achieved in the proposed transaction
with Online Resources, the complexity of our products and services and the
risk that they may contain hidden defects or be subjected to security breaches
or viruses, compliance of our products with applicable legislation,
governmental regulations and industry standards, our compliance with privacy
regulations, the protection of our intellectual property in intellectual
property litigation, the cyclical nature of our revenue and earnings and the
accuracy of forecasts due to the concentration of revenue generating activity
during the final weeks of each quarter, business interruptions or failure of
our information technology and communication systems, our offshore software
development activities, risks from operating internationally, including
fluctuations in currency exchange rates, exposure to unknown tax liabilities,
and volatility in our stock price. For a detailed discussion of these risk
factors, parties that are relying on the forward-looking statements should
review our filings with the Securities and Exchange Commission, including our
most recently filed Annual Report on Form 10-K, Registration Statement on Form
S-4, and subsequent reports on Forms 10-Q and 8-K.

ACI WORLDWIDE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(unaudited and in thousands, except share and per share amounts)
                                                            
                                                December 31,      December 31,
                                                2012              2011
ASSETS
Current assets
Cash and cash equivalents                       $ 76,329          $ 197,098
Billed receivables, net of allowances of          176,313           93,355
$8,117 and $4,843, respectively
Accrued receivables                               41,008            6,693
Deferred income taxes, net                        34,342            25,944
Recoverable income taxes                          5,572             -
Prepaid expenses                                  16,746            9,454
Other current assets                             5,816           9,320    
Total current assets                             356,126         341,864  
                                                                  
Property and equipment, net                       41,286            20,479
Software, net                                     129,314           22,598
Goodwill                                          501,141           214,144
Other intangible assets, net                      127,900           18,343
Deferred income taxes, net                        63,370            13,466
Other noncurrent assets                          31,749          33,748   
TOTAL ASSETS                                    $ 1,250,886      $ 664,642  
                                                                  
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable                                $ 33,926          $ 11,532
Accrued employee compensation                     35,194            27,955
Current portion of Term Credit Facility           17,500            -
Deferred revenue                                  139,863           132,995
Income taxes payable                              3,542             10,427
Deferred income taxes                             174               -
Alliance agreement liability                      -                 20,667
Accrued and other current liabilities            36,400          23,481   
Total current liabilities                        266,599         227,057  
                                                                  
Noncurrent liabilities
Deferred revenue                                  51,519            32,721
Note payable under Term Credit Facility           168,750           -
Note payable under Revolving Credit               188,000           75,000
Facility
Deferred income taxes                             14,940            -
Other noncurrent liabilities                     26,721          12,534   
Total liabilities                                716,529         347,312  
                                                                  
Stockholders' equity
Preferred stock                                   -                 -
Common stock                                      232               204
Common stock warrants                             -                 24,003
Treasury stock                                    (186,784  )       (163,411 )
Additional paid-in capital                        534,953           322,654
Retained earnings                                 199,987           151,141
Accumulated other comprehensive loss             (14,031   )      (17,261  )
Total stockholders' equity                       534,357         317,330  
TOTAL LIABILITIES AND STOCKHOLDERS'             $ 1,250,886      $ 664,642  
EQUITY
                                                                             

ACI WORLDWIDE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited and in thousands, except per share amounts)
                                   
                                       For the Three Months Ended December 31,
                                       2012                   2011
                                                                
Revenues:
Software license fees                  $   94,731               $  60,762
Maintenance fees                           58,862                  39,164
Services                                   38,985                  21,956
Software hosting fees                     31,517                13,155   
Total revenues                            224,095               135,037  
                                                                
Expenses:
Cost of software license fees              6,968                   4,077
(1)
Cost of maintenance, services              53,502                  27,445
and hosting fees (1)
Research and development                   33,586                  20,781
Selling and marketing                      22,730                  20,023
General and administrative                 21,616                  20,191
Depreciation and amortization             10,158                5,477    
Total expenses                            148,560               97,994   
                                                                
Operating income                           75,535                  37,043
                                                                
Other income (expense):
Interest income                            209                     676
Interest expense                           (3,031    )             (1,008   )
Other, net                                1,298                 (714     )
Total other income (expense)              (1,524    )            (1,046   )
                                                                
Income before income taxes                 74,011                  35,997
Income tax expense                        24,347                12,106   
Net income                             $   49,664              $  23,891   
                                                                
Earnings per share information
Weighted average shares
outstanding
Basic                                      39,393                  33,564
Diluted                                    40,055                  34,232
                                                                
Earnings per share
Basic                                  $   1.26                 $  0.71
Diluted                                $   1.24                 $  0.70
                                                                

(1) The cost of software license fees excludes charges for depreciation but
includes amortization of purchased and developed software for resale. The cost
of maintenance, services and hosting fees excludes charges for depreciation.

ACI WORLDWIDE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited and in thousands)
                                                             
                                                   For the Three Months Ended
                                                   December 31,
                                                   2012            2011
Cash flows from operating activities:
Net income                                         $ 49,664        $ 23,891
Adjustments to reconcile net income to net
cash flows from operating activities
Depreciation                                         3,596           2,012
Amortization                                         10,352          5,023
Deferred income taxes                                12,542          415
Stock-based compensation expense                     3,525           4,563
Excess tax benefit of stock options                  (165    )       (553    )
exercised
Other                                                852             419
Changes in operating assets and liabilities,
net of impact of acquisitions:
Billed and accrued receivables, net                  (48,003 )       (29,977 )
Other current and noncurrent assets                  2,092           (1,269  )
Accounts payable                                     5,965           (305    )
Accrued employee compensation                        (2,737  )       1,600
Accrued liabilities                                  2,311           2,327
Alliance liability                                   (20,667 )       -
Current income taxes                                 5,886           12,725
Deferred revenue                                     (21,470 )       10,625
Other current and noncurrent liabilities            (266    )      (269    )
Net cash flows from operating activities            3,477         31,227  
                                                                   
Cash flows from investing activities:
Purchases of property and equipment                  (3,018  )       (1,358  )
Purchases of software and distribution               (54     )       (1,719  )
rights
Alliance technical enablement expenditures          -             (1,600  )
Net cash flows from investing activities            (3,072  )      (4,677  )
                                                                   
Cash flows from financing activities:
Proceeds from issuance of common stock               398             305
Proceeds from exercises of stock options             1,671           1,698
Excess tax benefit of stock options                  165             553
exercised
Repurchase of restricted stock for tax               (331    )       (64     )
withholdings
Proceeds from revolving portion of credit            -               75,000
agreement
Repayment of interim revolving credit                -               (75,000 )
facility
Repayment of revolver portion of credit              (6,000  )
agreement
Repayment of term portion of credit                  (4,375  )       -
agreement
Payments for debt issuance costs                     -               (11,789 )
Payments on debt and capital leases                 (1,332  )      (550    )
Net cash flows from financing activities            (9,804  )      (9,847  )
                                                                   
Effect of exchange rate fluctuations on cash        (1,954  )      695     
Net increase (decrease) in cash and cash             (11,353 )       17,398
equivalents
Cash and cash equivalents, beginning of             87,682        179,700 
period
Cash and cash equivalents, end of period           $ 76,329       $ 197,098 
                                                                             

Contact:

ACI Worldwide
John Kraft, 239-403-4627
Vice President, Investor Relations & Strategic Analysis
john.kraft@aciworldwide.com
 
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