SCOTTSDALE, Ariz. - eFunds Corporation (NYSE: EFD - News) reported net income of $11.3 million, or 22 cents per diluted share, compared with net income of $10.1 million, or 21 cents per diluted share, in the fourth quarter of 2003.
Revenue decreased $4.9 million to $130.5 million in 2004's fourth quarter, compared to net revenue of $135.4 million in the fourth quarter of 2003. The decrease was principally due to the sale of the company's ATM portfolio in November 2004.
For the year ended Dec. 31, 2004, net income increased to $40.8 million, or 83 cents per diluted share, compared to net income of $28.9 million, or 61 cents per diluted share, reported in 2003.
eFunds recorded net revenue of $552.1 million for the year ended Dec. 31, 2004, compared to net revenue of $532.1 million recorded in 2003.
"We focused on fulfilling our 'back-to-basics' agenda, significantly improving our operating and financial performance, and bringing both organic and acquired growth back to eFunds," said Paul Walsh, chairman and chief executive. "With the sale of our ATM portfolio, we narrowed our focus around electronic payments, risk management and outsourcing solutions and solidified our commitment to the continued expansion of these businesses."
According to a news release, the company's board has approved a $100 million stock repurchase program. The company also announced that it has recently entered into a $100 million revolving credit facility with a syndicate of banks led by JP Morgan Chase. The facility is designed to provide eFunds with the liquidity needed to fund short-term settlement obligations and possible acquisitions..
The company said it expects net income to increase 17 percent to 22 percent in 2005 over the net income of $40.8 million reported in 2004.
