SCOTTSDALE, Ariz. -- eFunds Corporation (Nasdaq: EFDS) reported net income of $4.6 million or 10 cents a share on revenue of of $130.5 million for 2003's first quarter, down from net income of $8.5 million or 18 cents per share in 2002's first quarter.
The company attributed its decrease in revenue to the expiration of several contracts in its Electronic Payments segment, including one with the Star Systems network, as well as lower software license sales in the Professional Services segment.
The company's ATM segment -- which has lower operating margins than eFunds' other lines of business -- accounted for a growing portion of the company's earnings, rising to 26 percent of total net revenue in the first quarter of 2003, up from 15 percent in 2002's first quarter.
(See related story eFunds wants to boost ATM margins)
Revenue in the Electronic Payments segment dropped 19 percent, from $46.5 million in 2002's first quarter to $37.8 million in the latest quarter. Decision Support and Risk Management dropped 3 percent, from $37.3 million in 2002's first quarter to $36.2 million in the latest quarter. Professional Services dropped 23 percent, from $29.5 million in 2002's first quarter to $22.6 million in the latest quarter. ATM Management and Services increased 64 percent, to $33.8 million in the latest quarter, up from $20.6 million in 2002's first quarter.
Yet ATM operating expenses increased 57 percent, from $20.3 million in 2002's first quarter, to $31.9 million in the latest quarter. Operating expenses in Electronic Payments dropped 6 percent, from $34.1 million in 2002's first quarter, to $32.2 million in the latest quarter. Operating expenses also dropped in the other segments, from $31.6 million to $25.2 million in Decision Support and Risk Management and from $21.4 million to $18.1 million in Professional Services.
The company reaffirmed its guidance for 2003, saying it expect its full year revenue and earnings per share in 2003 will be in line with its 2002 reported results.
"As we stated last quarter, we see 2003 as a transition year in which we will focus on building the long-term future of our company," said Paul Walsh, chairman and chief executive, in a statement.
