SCOTTSDALE, Ariz. -- eFunds Corporation (Nasdaq: EFDS), reported that net income for the quarter ended March 31, 2002 increased to $7.8 million, up from $4.1 million in the first quarter of 2001. Revenues were $133.5 million in 2002's first quarter, up from $130.6 million in the year-earlier quarter.
Operating income rose to $11.5 million in the first quarter of 2002 from $6 million in
the first quarter of 2001. Diluted earnings per share in the first quarter of 2002 increased to 16 cents, compared with diluted earnings per share of 9 cents reported in the same period last
year.
Gus Blanchard, chairman and chief executive officer, noted that the acquisition of Hanco Systems brought the total number of ATMs under eFunds management to 11,000. The ATM business is expected to add approximately $22 million in annualized revenue, Blanchard said in a news release.
The Hanco acquisition was made with cash generated in the quarter, Blanchard said, and contributed $3.2 million in new revenue during the quarter, along with increased branding revenue.
Growth from other transaction processing customers largely offset the decline in processing revenues from the Star network, Blanchard said, with revenue from transaction processing products and services increasing to $67.2 million, or approximately 50 percent of total first quarter revenue, over the $61.8 million recorded in the first quarter of 2001
"We are particularly encouraged to note a shift in our revenue mix this quarter toward sources of longer-term recurring revenue streams and a decreasing emphasis on large software licenses," Blanchard said in the release.
