SCOTTSDALE, Ariz. -- eFunds Corporation (Nasdaq: EFDS) is revising its previously announced results of operations for the year ended Dec. 31, 2001 after making several accounting adjustments for two transactions with Access Cash International and its then-majority owner that were recorded in the second and third quarters of 2001.
eFunds owned 24 percent of Access Cash for the first three quarters of 2001 and acquired the remaining 76 percent of outstanding equity interests in the ISO in October 2001.
A June agreement with Access Cash and a July agreement with the then-majority owner of the ISO were originally accounted for as separate transactions. As a result of a review of the agreements, eFunds has concluded that these two contracts should have been accounted for as a single third quarter transaction, with the result that all exchanges of funds between the company and Access Cash related to these two agreements should be recorded as a net reduction in the purchase price ultimately paid for the remaining interests in Access Cash.
According to a news release, the primary result of all the adjustments to the Access Cash purchase price is a reduction of goodwill of approximately $1.3 million.
The restatement will not have a material impact on eFunds' results of operations for the year ended Dec. 31, 2001, and the company will restate its interim financial statements for the second and third quarters of 2001.
Revenues for the year will be reduced by less than 1 percent from $518.2 million to $513.6 million. 2001 diluted earnings per share will remain unchanged at 79 cents and basic earnings per share will be reduced by one cent to 81 cents.
For the second quarter, revenue will be reduced $2.1 million, and diluted and basic earnings per share will each be reduced by two cents. For the third quarter, revenues will be reduced by $2.4 million, diluted earnings per share will remain unchanged and basic earnings per share will increase by one cent. For the fourth quarter, revenues will remain unchanged, and diluted and basic earnings per share will each increase by one cent.
