SCOTTSDALE, Ariz. - eFunds Corporation (NYSE: EFD) says its fourth quarter net income rose to $10.1 million, or 21 cents per diluted share, compared with net income of $881,000, or 2 cents per diluted share, in 2002's fourth quarter.
Net revenue increased $3.8 million to $135.4 million in 2003's fourth quarter, compared to net revenue of $131.6 million in 2002's fourth quarter.
Results for 2003's fourth quarter included a $1.6 million charge, primarily related to the write-off of in-process research and development following the Company's acquisition of Oasis Technologies Ltd. and a $1.4 million benefit from a reduction of the reserve for estimated future losses on government services contracts.
For the year ended Dec. 31, 2003, net income increased to $28.9 million, or 61 cents per diluted share, on net revenue of $532.1 million, compared to 2002's net income of $24.6 million, or 53 cents per diluted share, on net revenue of $543.1 million.
According to a news release, the revenue decline was largely attributable to the loss of the Star and EMEVS contracts during 2002 and a decline in revenues from IT consulting services during 2003. The effect of the revenue declines was somewhat offset by increased revenue from ATM acquisitions completed in 2002 and new EBT contracts.
Results for 2003 included $4.2 million in restructuring and other charges and a $3.7 million benefit from a reduction of the reserve for estimated future losses on government services contracts. 2003 results were also positively impacted by a decrease in the company's estimated annual effective tax rate from approximately 32 percent to just under 28 percent.
The company believes revenues for 2004 will increase approximately 5 percent to 10 percent over 2003's revenues. The company also expects diluted earnings per share to increase 25 percent to 30 percent, which is in line with the current consensus of analyst estimates published on FirstCall.
