ACI Worldwide Inc. has issued guidance for the full year and included the impact of new accounting standards issued by the Financial Accounting Standards Board, which it adopted Jan. 1.
The new accounting standards are related to revenue from contracts with customers, and the company expects them to impact the timing and amount of revenue recognition for its on-premise licensing arrangements. It does not, however, expect the new standards to impact its other revenue streams or cash flows from operations.
Under the old standards, the company expects 2018 revenue of $1.05 billion to $1.08 billion, representing 3% to 5% growth year over year on a comparable GAAP basis for the full year. Adjusted EBITDA is expected to be in a range of $270 million to $285 million, which excludes roughly $5 million to $7 million in significant transaction-related expenses. The company expects to generate between $210 million and $220 million of revenue in the first quarter.
Under the new standards, ACI expects full-year revenue of $1.03 billion to $1.06 billion, and adjusted EBITDA to be in a range of $255 million to $270 million, excluding roughly $5 million to $7 million in significant transaction-related expenses. The company expects to generate between $200 million and $210 million of revenue in the first quarter.
For 2019, adjusted EBITDA is targeted to be between $300 million and $315 million. For 2020, the target for adjusted EBITDA is $335 million to $350 million.
For the fourth quarter of 2017, the company reported net income of $33.2 million, or 28 cents per share, compared with $66.7 million, or 56 cents per share, in the year-ago quarter.
The S&P Capital IQ consensus GAAP EPS estimate for the quarter was 39 cents.