Accounting rules hurt Bottomline’s bottom line

Bottomline Technologies was in the red for the first quarter of fiscal year 2007, thanks to new accounting rules that now make it count stock compensation to its top executives as an expense, according to on Thursday.

The Portsmouth-based payment and invoice software firm lost $1.5 million for the first quarter, or 6 cents a share, compared to a slight gain from the first quarter last year of a penny per share. That loss includes some $1.8 million paid to the company’s top executives in stock and another $1.5 million in acquisition related amortization of intangible assets.

Without these factors, Bottomline would have actually made $1.8 million, though that would still be less than the $2.7 million it made under the old rules a year ago.

Revenues were $25.2 million, up slightly from the same quarter last year, and subscription and transaction revenue rose 33 percent.

“We are pleased with our first-quarter results,” said Joe Mullen, CEO of Bottomline Technologies. “We are performing as planned – focusing our resources and energy on obtaining multi-year recurring revenue accounts while at the same time achieving our financial targets.” – BOB SANDERS