SCOTTSDALE, Ariz. -- eFunds Corporation (Nasdaq: EFDS) reported net income of $900,000 or diluted earnings per share of 2 cents in 2002's fourth quarter, compared to net income of $11.7 million, or diluted earnings per share of 25 cents in 2001's fourth quarter.
According to a news release, net revenue for the fourth quarter was $131.6 million, compared to net revenue of $138.1 million reported in 2001's fourth quarter.
For the full year, net income was $24.6 million resulting in diluted earnings per share of 53 cents, compared to net income of $33.3 million, or diluted earnings per share of 70 cents, reported in 2001.
Excluding restructuring charges of $16.5 million and a $2 million benefit related to the reduction in the estimated future losses on certain government EBT contracts, 2002 diluted earnings per share were 74 cents, consistent with the company's prior guidance.
Full year revenues increased to $543.1 million in 2002 from the $537.2 million recorded in 2001. Revenue increases for 2002 were driven by ATM acquisitions and increased sales of new account inquiry products such as New AccountChex.
The increases were offset by the loss of approximately $5 million of Star network processing revenue during 2002's fourth quarter as compared to the fourth quarter of 2001 and a decline of approximately $32 million in software sales from the levels seen in 2001.
The company attributed its lower diluted earnings per share to a shift in revenue mix from the higher margin software sales seen in 2001 to lower margin revenues provided by the ATM business, as well as the loss of the Star processing revenue and an increase in professional fees.
"While it was a year full of challenge, 2002 was also a year of positive change at eFunds," said Paul Walsh, chairman and chief executive, in the release. "With a new leadership team in place, we exited the year with a sense of optimism and a clear focus on the future."
Walsh said in the release that eFunds' new leadership team is structured to better manage and grow its four core lines of business: Decision Support and Risk Management, ATM Management, Electronic Payments and Professional Services.
Walsh said that eFunds expects its diluted earning per share and revenue for 2003 will be in line with 2002's reported results.
