STRATEGIC PARTNERS
October 27, 2002
SCOTTSDALE, Ariz. -- Transaction processor eFunds Corp. (NasdaqNM:EFDS - News), is delaying the release of its financial results for the third quarter ended Sept. 30, while it reviews how it accounted for certain transactions during 2000 and 2001. The company has indefinitely postponed its quarterly conference call scheduled for Oct. 30.
According to an eFunds news release, the review will focus on the company's India-based operations, and includes two data licensing agreements valued at a combined $11.2 million. The company also reviewing the appropriateness of accounting for certain deals with the Star EFT network.
Issues being considered as part of the review include assessing whether revenues recognized in earlier periods should be deferred and recognized over later periods or treated as a reduction in operating expenses, according to the release.
"PricewaterhouseCoopers LLP has been engaged to assist us in our efforts and our goal is to complete this process as soon as reasonably possible," Chief Executive Paul Walsh said in the release.
The SEC has requested additional information related to certain of the matters that are part of its inquiry involving eFunds' restatement of certain 2001 results. According to the release, eFunds intends to cooperate fully with this request.
The SEC investigation centered on eFunds' 2001 purchase of Access Cash International, one of four purchases of ISOs that eFunds has announced in the past year. (See related story eFunds under SEC investigation)
Shares of eFunds stock, which were halted from trading on Oct. 25, were trading at $8.68 early on Oct. 28, down 10 percent from Oct. 24's $9.65 close.
