Brookfield, Wis., July 21, 2005—Fiserv, Inc. (Nasdaq: FISV) announced today
continued strong earnings for the second quarter of 2005.
Net income per share-diluted from continuing operations for the second quarter of 2005 was $0.59 per share, compared to $0.49 per share for the second quarter of 2004. Processing and services revenues were $913.1 million, an increase of 10% over the second quarter of 2004.
For the six-month period ended June 30, 2005, Fiserv processing and services
revenues were $1,795.4 million, a 9% increase over the first six months of 2004. Net income per share-diluted from continuing operations (excluding realized gain from sale of investment of $0.14 per share) was $1.17 per share compared to $0.97 per share for the first six months of 2004.
"We are very pleased with our results for the first half of 2005, posting record revenues and earnings along with strong operating margins in our businesses. Our financial segment internal revenue growth rate was 6% for the first half of 2005, which is a solid improvement over the prior year 2% growth rate," said Leslie M. Muma, president and chief executive officer of Fiserv.
During the second quarter, Fiserv completed three acquisitions. Fiserv acquired the assets of the U.S. eLending operations of Emergis, Inc. (TSX: EME), which provides mortgage lenders the tools that will enable them to more easily obtain an array of Fiserv and third-party services needed to process, close and fund mortgage loans via the Internet and provides the capability to
manage, electronically sign, and store mortgage documents in a secure electronic environment.
The second acquisition was Interactive Technologies, Inc., a developer of fee management and billing software for large and mid-sized financial services organizations. The latest acquisition was Administrative Services Group, Inc., a regional employee benefits plan administrator.
In the first half of 2005, Fiserv repurchased 6.5 million shares of common stock, and in July, the Board of Directors authorized the repurchase of an additional 10 million shares of the company’s common stock, bringing the total remaining shares available for repurchase to 10.8 million.
OUTLOOK FOR THE THIRD QUARTER AND FULL YEAR
Fiserv has updated its earnings and revenue outlook for the third quarter and the full year. For the third quarter of 2005, processing and services revenues are estimated to be approximately $905 to $925 million and net income per share-diluted is estimated to be $0.53 to $0.56.
Based on the strong results through the second quarter, Fiserv is raising its full year 2005 estimated net income per share-diluted earnings (excluding realized gain from sale of investment of $0.14 per share) to a range of $2.24 to $2.28 from a range of $2.19 to $2.23.
Internal revenue growth rates for the full year 2005 are projected to be in the mid-single digits in the Financial and Investment segments and upper single digits in the Health segment.
RENEWED AND NEW CLIENT RELATIONSHIPS
Significant client renewals and other new relationships gained in the second quarter include the following: World Omni Financial Corp., one of the nation's largest auto finance companies, licensed the LeMans Loan Origination System to manage its Toyota Auto Finance portfolio in the Southeast U.S., as well as its CenterOne third-party servicing division portfolio across the entire country; the Washington State Health Care Authority agreed to renew its contract with the Harrington unit of Fiserv Health to administer benefits to state employees for four years effective Jan. 1, 2006; Credit Union On-Line (CUOL), a Waltham, Mass.-based credit union service organization representing $2.9 billion in assets, selected Fiserv XP Systems to provide the XP2 information system to the CUOL client base; CoopDesarrollo, Mexico's sixth largest credit
union, will be one of the first Mexican credit unions to comply with new Mexican government regulations by using the ICBS core banking system from Fiserv's CBS Worldwide unit; Aequitas Capital Management selected Fiserv Credit Processing Services' PLUS System to provide selected hospitals and healthcare providers with a turnkey consumer medical finance program;
and Merchants Bank, a $1.1 billion-asset bank based in South Burlington, Vt., expanded its already significant relationship with Fiserv to include check processing services.
Module manages state forms for compliance, with regulatory and statutory reporting standards Sapiens International Corporation, (NASDAQ and TASE...View article
StoneRiver, Inc., a trusted insurance technology partner with solutions across multiple business lines, today announced that it is bringing key StoneR...View article
Integration of Customer Communications and Workers' Compensation Systems StoneRiver, Inc., the trusted insurance technology partner with solutions acr...View article