Bottomline reports a loss

Bottomline Technologies’ bottom line is in the red for the fourth quarter and the year as a whole, partly because of the stock options taken by top company officials.

The Portsmouth-based payroll software firm reported a net loss of $900,000 (4 cents a share) for the quarter, compared to a net gain of $2.2 million in the fourth quarter of last year. And the company lost $1.8 million last year (8 cents a share) compared to a $5.9 million gain last year.

Recent federally mandated changes in accounting rules are responsible for the loss. Part of this is due to the accounting related to previous acquisitions. But it’s mainly because the new rules require a company count stock-based compensation as an expense. The company granted $1.7 million worth of stock options last quarter and $7 million during the entire fiscal year. Without these expenses, the company would have been in the black.

The company had $26 million in sales the fourth quarter, just $300,000 less than last year. Revenue for the fiscal year — $101 million – was up slightly more than $5 million over the previous years.

Bottomline also has some money in the bank — some $80 million in cash and cash equivalents.

“We are progressing as planned and are seeing positive customer response to our products and services,” said Joe Mullen, CEO of Bottomline Technologies. ”We continue to be encouraged about our future business potential.” – BOB SANDERS