Net income was $5.9 million, or $0.20 per share on a diluted basis, compared with $6.4 million, or $0.22 per share on a diluted basis, for the quarter ended June 30, 2000. Lightbridge’s second-quarter results are in line with the estimates provided by the Company in its July 2, 2001 news release.
Revenues from the Company’s transaction processing business were $25.1 million during the quarter, compared with $21.7 million in the same quarter of 2000, an increase of 15.6%. Software revenues were $8.9 million, down 2.0% from $9.1 million for the second quarter of 2000.
Consulting services revenues were $11.1 million, compared with $9.6 million in the same quarter in 2000, an increase of 15.7%. Hardware revenues were down significantly to $741,000, from $4.9 million for the same quarter of 2000.
As we announced in our July 2 news release, taking into account the capital spending slowdown and slower subscriber growth in the wireless telecom industry, this has been a solid quarter for the Company, said Pamela D.A. Reeve, Lightbridge’s chief executive officer. We experienced year-over-year quarterly growth in both our transactions, and consulting and services businesses, although revenues in our non-strategic hardware segment declined by $4.1 million. As we indicated previously, we are phasing out of the hardware segment as demand for analog phone technology diminishes and our clients find alternative suppliers of hardware to support prepay.
The second quarter was highlighted by a number of key accomplishments, Reeve said. We continued to broaden our market penetration with the completion of several new software license deals for our Retail Management SystemTM and FraudBuster® application and we enjoyed a strong increase in activity with our consulting and services business for a growing list of worldwide clients.
For the long term, we believe the outlook for the wireless industry and for Lightbridge remains very positive, Reeve continued. Recently, we announced a three-year renewal of our national account contract with one of our core clients, Sprint PCS, to utilize Lightbridge’s Customer Acquisition SystemTM. In addition, the size and quality of the potential deals in our sales cycle, both domestically and internationally, further encourages us.
Our mission remains clear every hour of the day, every day of the week, we help our partners to acquire new subscribers, manage risk, bill for services and retain customers. As we move ahead, we remain focused on achieving a number of key milestones over the next several quarters that support our mission.
Capitalize on the growing interest in prepaid wireless billing in the U. S. by installing our system at one or more large wireless carriers,
Renew and expand our commitments with our current client base,
Develop strategic alliances to broaden our reach around the globe, and
Leverage our existing technology to support new applications within the mobile communications space.
It is our belief that pursuing these actions, when combined with a resumed expansion of the global wireless market, will position Lightbridge to achieve revenue growth in the future, Reeve concluded.
Revenues for the six months ended June 30, 2001 were $95.2 million, up 8.6% from $87.6 million in the same period of 2000. Net income for the six months ended June 30, 2001 was $10.0 million, or $0.35 per share on a diluted basis, compared with $12.0 million, or $0.41 on a diluted basis, for the first six months of 2000. Net income for the six months ended June 30, 2001, excluding merger related costs of $6.0 million in connection with the first quarter 2001 acquisition of Corsair Communications, Inc., was $11.5 million or $0.40 per share on a diluted basis.
Lightbridge’s expectation for the third quarter of 2001 is total revenues of between $41 and $43 million, with diluted earnings per share between $0.14 and $0.16. Transaction revenues are expected to be between $25 and $25.5 million in the third quarter and consulting and services revenues between $10 and $10.5 million. Taking the Company’s 2001 second quarter results in hardware as an indicator of future performance, Lightbridge anticipates that hardware revenues in the third quarter of 2001 will continue to be incidental approximately $.5 to $1 million. Lightbridge expects software revenues to be in the range of $5.5 to $6.0 million in the third quarter of 2001.
