Revenues were $49.3 million, up 16.4% from $42.4 million for the first quarter of 2000. Net income was $4.1 million, or $0.14 per share on a diluted basis, compared to $5.6 million or $0.19 per share on a diluted basis for the quarter ended March 31, 2000. Net income, excluding merger related costs of $6.0 million, in connection with the acquisition of Corsair Communications, Inc., was $5.6 million or $0.19 per share on a diluted basis.
Revenues from the Company’s transaction processing business were $25.9 million during the quarter, compared to $20.4 million in the same quarter of 2000, an increase of 26.6%. Software revenues were $8.2 million, down 3.2% from revenues of $8.4 million for the first quarter of 2000. Consulting services revenues were $10.8 million, compared to $8.8 million in the same quarter in 2000, a 22.0% increase. Hardware revenues were $4.6 million, down slightly from revenues of $4.7 million for the same quarter of 2000.
Pamela D.A. Reeve, Lightbridge’s chief executive officer, commented, This has been another good quarter for the company and we are clearly off to a good start for the year. During the first quarter, we processed our 100 millionth application for wireless service since the Company’s inception and, going forward, we continue to see consistent, solid growth and opportunity in the transaction processing segment of our business. In addition, consulting revenues increased from Q1 2000, while software revenues were within our expected range. We are gratified by the receptivity we are experiencing for our expanded portfolio of products and services.
Reeve continued, We closed our merger with Corsair in mid-February and have made solid progress in integrating the two companies’ people, technology and resources. We are very excited about the opportunities that lie ahead – new markets, new geographies, new clients as well as more to offer to existing clients. As a combined company, we are well positioned to leverage our existing markets and take advantage of high-growth opportunities in the expanding global wireless market.
Revenue is expected to grow 2-3 percent in Q2, 2001 with diluted earnings per share increasing by $0.06-$0.08 driven by modest improvements in margin and the elimination of merger related expenses. Transaction revenue is expected to grow to approximately $27 million with software, consulting and services, and hardware revenues remaining level with Q1, 2001.
Consistent with prior guidance, Lightbridge expects to see annual revenue grow approximately 20 percent over 2000. Total gross margins are expected to be in the mid-fifty percent range for the year with operating expenses in the range of 37 to 39 percent of revenue and diluted earnings per share between $1.02 to $1.05, excluding merger related items. We expect a strong second half including additional software revenues.
