SCOTTSDALE, Ariz. - eFunds Corporation reported net income of $10.7 million, or 22 cents per diluted share, for the third quarter of 2004, compared with net income of $9.1 million, or 19 cents per diluted share, in 2003's third quarter. EPS bested Reuters Estimates consensus of 21 EPS by a penny.
Revenue in 2004's third quarter increased 5.2 percent to $140.1 million, compared to revenue of $133.1 million a year earlier. This was below the Reuters Estimates consensus of $143.2 million.
For the nine months ended Sept. 30, eFunds reported net income of $29.5 million, or 60 cents per diluted share, compared with net income of $18.8 million, or 40 cents per diluted share, reported in the first nine months of 2003. Revenue increased 6.3 percent to $421.7 million for the first nine months of 2004, compared to $396.6 million reported in the same period of 2003.
"Beyond this quarter's solid operating results, we are also very excited about the previously-announced transaction to sell our ATM portfolio to TRM Corporation," said Paul Walsh, The company's chairman and CEO. "The consummation of this transaction will position us to focus on our higher-growth and higher-margin opportunities, while expanding our global footprint."
The company expects its three core business segments -- Electronic Payments, Risk Management and Global Outsourcing -- will achieve full year revenues of approximately $425 million to $435 million. It expects full year diluted EPS to increase 25 to 30 percent in 2004 over the diluted EPS of 61 cents reported in 2003
Full year 2004 revenues for the ATM management segment will depend upon the consummation date of the ATM portfolio sale. The segment had revenues of $103 million for the nine-month period ended September 30.
