STRATEGIC PARTNERS
October 29, 2001
MEMPHIS, Tenn. --Concord EFS Inc.(NasdaqNM:CEFT-news), which runs payment-processing systems and ATM networks, said net income rose to $81.5 million, or 16 cents per diluted share, in 2001's third quarter, from $50.2 million, or 10 cents per share, a year earlier.
Wall Street had expected the firm to earn 15 cents to 16 cents per share, with a mean estimate of 16 cents, according to market research firm Thomson Financial/First Call.
Concord said deals with two new customers -- retailing giant Wal-Mart and Citizens Financial Corp -- will add to revenues beginning in the fourth quarter.
More than 1,700 Wal-Mart stores will connect to Concord for PIN-secured debit card payments, and Citizens Financial signed a long-term contract for signature debit, ATM and gateway processing services. Citizens is expected to add more than 100 million transactions annually once certification is complete.
In other highlights from the quarter, Ultramar Diamond Shamrock Corporation (UDS) completed its conversion to Concord's settlement processing in early October. UDS, which has been a Concord client since 1985, expanded its relationship with Concord to include payment processing for all its retail gasoline/convenience store locations in the U.S., plus back-end settlement services for credit card payments.
Concord also reached an agreement with eFunds Corporation in which eFunds will provide software and other professional services to facilitate the consolidation of network switch processing from eFunds' platform to Concord's switch processing platform in Maitland.
Concord's board of directors approved a 2-for-1 stock split, which was completed Sept. 28, 2001.
Concord EFS stock closed at $25.76 on Nasdaq on Oct. 29.
