BROOKFIELD, Wis. - Fiserv Inc. reported a 13 percent revenue increase for the first quarter of 2006, up from $937.1 million in 1Q 2005 to $1.1 billion. Net income fell, from $139 million, 71 cents per share, to $116.2 million, 64 cents per share.
But, according to a news release, EPS adjustments made in 2005, which related to sale of the company's remaining 3.2 million shares of Bisys Group stock, reduced EPS in 1Q '05 to 52 cents.
"Our first quarter results reflect the value of our mix of businesses, which combined to deliver significant growth in revenue, earnings and cash flow," Fiserv's president and chief executive, Jeff Yabuki, said. "We invested in initiatives that will provide future organic growth.
"For the remainder of 2006, we will continue to focus on building our organic growth capabilities across the enterprise. We remain confident in achieving our growth target for the year."
Contributing to the growth was a $3 billion deal signed between Fiserv's credit union group and Marlborough, Mass.-based Digital Credit Union.
Fiserv also was selected to provide services for the startup of Blue Healthcare Bank, an industrial bank pending regulatory approval under HealthBenefit Corp. The new bank is being formed by the BlueCross and BlueShield Association to provide consumer-directed health-program services.
Fiserv is expected to provide the new "Blue" bank with a core-banking platform, card-processing, item-processing and health savings, health reimbursement and flexible spending-account administration, as well as other services.
"This agreement reflects Fiserv's unique capabilities to serve the growing convergence of healthcare and financial services," Yabuki said.
Thomas Hirsch named Fiserv's new CFO
Fiserv also announced April 25 that it has a new chief financial officer, Thomas Hirsch, who will replace retiring CFO Kenneth Jensen July 1. In addition to CFO, Hirsch will serve as executive vice president and be appointed to the company's management committee May 1.
Hirsch joined Fiserv in 1994 and served most recently as the company's senior vice president and corporate controller, where he also had responsibility for the investor relations and treasury functions. Before Fiserv, Hirsch worked for Deloitte & Touche USA LLP.
Jensen, who announced his retirement in November, will continue to work with Fiserv as a consultant.
