Bottomline Technologies swings to a profit

Bottomline Technologies’ bottomline changed from red to black last quarter, but whether that justifies the recent run up in stock price remains to be seen.The Portsmouth-based software payroll firm posted a net income of nearly $1 million, or about 3 cents a share, as opposed to nearly losing $2 million same quarter during the previous year, according to third quarter earnings report of its fiscal year released Thursday after market close.Several days before the report, expectations ran high – perhaps aided by the possibility of strong results from a recent deal with Bank of America – driving up the share price by $2 a share, approaching the company’s 52-week high. It closed Thursday at 42 cents short of that at $19.43.Revenue went up by 20 percent to nearly $40 million in the quarter, which ended on March 31, but much of that $6.5 million increase was eaten away by $2.36 million in equity-based compensation to the company’s chief executives and another $3.2 million in “amortization of intangible assets,” leaving only $950,000 to be shared among the stockholders. Without counting those expenses – demanded by current accounting standards – Bottomline would have reported a “core” net income of $6.5 million.For the three quarters of the fiscal year, the story is pretty much the same. Reported revenue of $116.5 million, was up 13 percent, resulting in net income of $2.8 million, or 11 cents a share. Last fiscal year at this time, the company was $8.7 million in the red for the quarter. But that core net income would have been nearly $20 million, if not for a $10 milllion write-off in intangible assets and some $6.7 million in equity doled out to top executives.The last quarter brings the company’s total assets to $92.7 million, with $58.2 million in cash or cash equivalents. Stockholder equity is at $148.6 million, about $28 million more than three quarters ago. – BOB SANDERS/NEW HAMPSHIRE BUSINESS REVIEW