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

Thu Feb 28, 2013 6:00am EST

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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

NAPLES, Fla.--(Business Wire)--
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.com or 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 license fees                             6,968                      -                          6,968                     4,077                      -                          4,077                      2,891                71    %     
 Cost of maintenance, services and hosting fees            53,502                     -                          53,502                    27,445                     -                          27,445                     26,057               95    %     
 Research and development                                  33,586                     -                          33,586                    20,781                     -                          20,781                     12,805               62    %     
 Selling and marketing                                     22,730                     -                          22,730                    20,023                     -                          20,023                     2,707                14    %     
 General and administrative (3)                            21,616                     (4,430  )                  17,186                    20,191                     (3,200  )                  16,991                     195                  1     %     
 Depreciation and amortization                             10,158                     -                          10,158                    5,477                      -                          5,477                      4,681                85    %     
 Total expenses                                            148,560                    (4,430  )                  144,130                   97,994                     (3,200  )                  94,794                     49,336               52    %     
                                                                                                                                                                                                                                                             
 Operating income                                          75,535                     8,065                      83,600                    37,043                     3,200                      40,243                     43,357               108   %     
                                                                                                                                                                                                                                                             
 Other income (expense):                                                                                                                                                                                                                                     
 Interest income                                           209                        -                          209                       676                        -                          676                        (467    )            -69   %     
 Interest expense                                          (3,031   )                 -                          (3,031   )                (1,008   )                 -                          (1,008   )                 (2,023  )            201   %     
 Other, net                                                1,298                      -                          1,298                     (714     )                 -                          (714     )                 2,012                -282  %     
 Total other income (expense)                              (1,524   )                 -                          (1,524   )                (1,046   )                 -                          (1,046   )                 (478    )            46    %     
                                                                                                                                                                                                                                                             
 Income before income taxes                                74,011                     8,065                      82,076                    35,997                     3,200                      39,197                     42,879               109   %     
 Income tax expense (4)                                    24,347                     2,823                      27,170                    12,106                     1,120                      13,226                     13,944               105   %     
 Net income                                            $   49,664               $     5,242                 $    54,906                $   23,891               $     2,080                 $    25,971                $    28,935               111   %     
                                                                                                                                                                                                                                                             
 Depreciation and amortization                             13,948                     -                          13,948                    7,035                      -                          7,035                      6,913                98    %     
 Stock-based compensation                                  3,525                      -                          3,525                     4,563                      -                          4,563                      (1,038  )            -23   %     
                                                                                                                                                                                                                                                             
 Adjusted EBITDA                                       $   93,008               $     8,065                 $    101,073               $   48,641               $     3,200                 $    51,841                $    49,232               95    %     
                                                                                                                                                                                                                                                             
 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    %     
                                                                                                                                                                                                                                                             


 (1)    This presentation includes non-GAAP measures. Our non-GAAP measures are 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.      
                                                                                                                                                                                                                                                                                                  
 (2)    Adjustment for $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.                                                                                               
                                                                                                                                                                                                                                                                                                  
 (3)    One-time expense related to the acquisition of S1, including, $1.3 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 license fees                             23,592                   -                         23,592                  15,418                   -                        15,418                   8,174               53    %     
 Cost of maintenance, services and hosting fees            202,052                  -                         202,052                 118,866                  -                        118,866                  83,186              70    %     
 Research and development                                  133,759                  -                         133,759                 90,176                   -                        90,176                   43,583              48    %     
 Selling and marketing                                     87,054                   -                         87,054                  80,922                   -                        80,922                   6,132               8     %     
 General and administrative (3)                            108,747                  (31,464  )                77,283                  71,425                   (6,700  )                64,725                   12,558              19    %     
 Depreciation and amortization                             37,003                   -                         37,003                  22,057                   -                        22,057                   14,946              68    %     
 Total expenses                                            592,207                  (31,464  )                560,743                 398,864                  (6,700  )                392,164                  168,579             43    %     
                                                                                                                                                                                                                                                 
 Operating income                                          74,372                   53,925                    128,297                 66,231                   6,700                    72,931                   55,366              76    %     
                                                                                                                                                                                                                                                 
 Other income (expense):                                                                                                                                                                                                                         
 Interest income                                           914                      -                         914                     1,315                    -                        1,315                    (401     )          -30   %     
 Interest expense                                          (10,417  )               -                         (10,417  )              (2,431   )               -                        (2,431   )               (7,986   )          329   %     
 Other, net                                                399                      -                         399                     (802     )               -                        (802     )               1,201               -150  %     
 Total other income (expense)                              (9,104   )               -                         (9,104   )              (1,918   )               -                        (1,918   )               (7,186   )          375   %     
                                                                                                                                                                                                                                                 
 Income before income taxes                                65,268                   53,925                    119,193                 64,313                   6,700                    71,013                   48,180              68    %     
 Income tax expense (4)                                    16,422                   18,874                    35,296                  18,461                   2,310                    20,771                   14,525              70    %     
 Net income                                            $   48,846             $     35,051               $    83,897              $   45,852             $     4,390               $    50,242              $    33,655              67    %     
                                                                                                                                                                                                                                                 
 Depreciation and amortization                             50,781                   -                         50,781                  28,378                   -                        28,378                   22,403              79    %     
 Stock-based compensation (5)                              15,186                   (2,822   )                12,364                  11,255                   -                        11,255                   1,109               10    %     
                                                                                                                                                                                                                                                 
 Adjusted EBITDA                                       $   140,339            $     51,103               $    191,442             $   105,864            $     6,700               $    112,564             $    78,878              70    %     
                                                                                                                                                                                                                                                 
 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    %     
                                                                                                                                                                                                                                                 


 (1)    This presentation includes non-GAAP measures. Our non-GAAP measures are 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.      
                                                                                                                                                                                                                                                                                                  
 (2)    Adjustment for $22.5 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.                                                                                              
                                                                                                                                                                                                                                                                                                  
 (3)    One-time expense related to the acquisition of S1, including, $14 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 Cash Flow (millions)                       Quarter Ended December 31,                          Year Ended December 31,                     
                                                                             2012                          2011                  2012                       2011             
 Net cash provided (used) by operating activities                            $     3.5                     $     31.2                 ($9.3  )              $    83.5        
 Net after-tax payments associated with employee-related actions                   0.4                           -                    6.2                        -           
 Net after-tax payments associated with lease terminations                         1.9                           -                    2.7                        -           
 Net after-tax payments associated with S1 related transaction costs               -                             3.3                  8.8                        3.7         
 Net after-tax payments associated with cash settlement of S1 options              -                             -                    10.2                                   
 Net after-tax payments associated with IBM IT Outsourcing Transition              0.2                           0.2                  0.9                        0.9         
 Plus IBM Alliance liability repayment                                             20.7                          -                    20.7                       -           
 Less capital expenditures                                                         (3.1  )                       (3.1  )              (16.7  )                   (19.0  )    
 Less Alliance technical enablement expenditures                                   -                             (1.6  )              -                          (1.9   )    
 Operating Free Cash Flow                                                    $     23.6                    $     30.0            $    23.5                  $    67.2        


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 $8,117 and $4,843, respectively               176,313                      93,355           
 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 Facility                                           188,000                      75,000           
 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' EQUITY                                      $      1,250,886             $      664,642          
                                                                                                                                      


 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 (1)                                6,968                                4,077           
 Cost of maintenance, services and hosting fees (1)               53,502                               27,445          
 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 exercised                                                (165     )                       (553     )     
 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 rights                                                (54      )                       (1,719   )     
 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 exercised                                                165                              553            
 Repurchase of restricted stock for tax withholdings                                          (331     )                       (64      )     
 Proceeds from revolving portion of credit agreement                                          -                                75,000         
 Repayment of interim revolving credit facility                                               -                                (75,000  )     
 Repayment of revolver portion of credit agreement                                            (6,000   )                                      
 Repayment of term portion of credit agreement                                                (4,375   )                       -              
 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 equivalents                                         (11,353  )                       17,398         
 Cash and cash equivalents, beginning of period                                               87,682                           179,700        
 Cash and cash equivalents, end of period                                               $     76,329                     $     197,098        
                                                                                                                                              


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

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