BROOKFIELD, Wis. - Fiserv Inc. reported revenue and net income increases of 5 percent and 10 percent, respectively, for the third quarter of 2007. Revenue for the quarter hit $1.17 billion, up from $1.12 billion during the same period last year. Net income came in at $120.9 million, 72 cents per share, up from $110 million, 60 cents per share, in 3Q 2006.
Revenue for the first nine months of the year also showed increases, growing 9 percent at $3.54 billion, up from $3.24 billion in '06. Net income year-to-date, however, dropped slightly, less than 1 percent, from $344 million to $342.7 million. But EPS showed growing, from $1.80 in 2006 to $2.03 in 2007.
"Financial segment performance and proactive management led to strong earnings growth," said Jeffery Yabuki, Fiserv's president and chief executive. "While third-quarter internal revenue growth was negatively impacted by market conditions, we are pleased with the continuing strong results of our core processing and payments products."
Highlights
- Performance in the company's Investment Support Services segment, which is reported as discontinued operations, contributed EPS of 3 cents during the quarter before the inclusion of $6.9 million of transaction-related expenses. The company announced the sale of the Fiserv ISS businesses in two separate transactions in May 2007. One transaction is expected to close by the end of the year, while the other is expected to close in early 2008.
- Fiserv EFT completed 59 new sales in the quarter, with 97 percent of those sales being made within the Fiserv core-processing client base.
- The company signed 82 new clients in the quarter for its electronic bill-payment services and now has nearly 640 electronic billpay clients.
- Fiserv added 272 clients during the quarter for its branch-capture product and 172 clients for its merchant capture product. Fiserv now has more than 970 branch-capture clients and more than 870 merchant capture clients.
- Desert Schools Federal Credit Union, a $3.4 billion financial institution based in Arizona, signed a core-processing deal with Fiserv CBS Worldwide during the quarter. The included Fiserv's NetEconomy risk management service and WireXchange.
- And Urbana, Ill.-based First Busey Corp., a $4 billion bank holding company, chose Fiserv to provide core account processing through Fiserv ITI Outsourcing, as well as budgeting, planning and financial accounting tools through IPS-Sendero, a unit of Fiserv.
- In August, Fiserv announced a $4.4 billion all-cash acquisition of CheckFree Corp. On Oct. 23, CheckFree stockholders voted to approve the transaction, which is expected to close in the fourth quarter.
- In September, Fiserv announced the acquisition of WorkingRx in order to strengthen its workers' compensation pharmacy transaction-processing business in its insurance segment. WorkingRx helps pharmacies reduce the administrative time spent on processing workers' compensation claims.
- In October, Fiserv also announced its acquisition of BancIntelligence, an online advisory solution for financial institutions that provides automated analysis and Web-based strategy development to more than 500 clients located in 49 states.
"We have made significant progress in enhancing our product and services offerings with a goal of providing the greatest value to clients," Yabuki said. "We will continue to shape our business model to strengthen our leadership position in serving the financial services industry."
