STRATEGIC PARTNERS
December 5, 2002
SCOTTSDALE, Ariz. -- eFunds Corporation (Nasdaq: EFDS) reported net income of $10.7 million, or 23 cents per diluted share for the quarter ended Sept. 30, a 22 percent drop compared to net income of $13.7 million, or 29 cents per diluted share in the comparable quarter of 2001.
According to a news releease, net revenue increased to approximately $144 million for the third quarter of 2002 from $141.3 million for 2001's third quarter. Reported operating income was $15.5 million and corresponding operating margins were 10.8 percent for the third quarter of 2002, compared to operating income of $21.8 million and corresponding operating margins of 15.4 percent for the same period last year.
In a filing with the U.S. Securities and Exchange Commission, company officials said that ATM management services revenue increased by 77 percent, to $34.9 million for the quarter, up from $19.7 million during the same period last year. The increases were primarily caused by recent acquisitions of several ATM networks. EFunds currently manages a network of 16,800 ATMs and provides processing for about 9,500 of those machines.
The transition of processing for the Starnetwork to its parent, Concord EFS Inc., was completed during the quarter, and eFunds officials said they do not expect to realize any future material revenue from the relationship.
During the quarter, Concord accounted for $7.6 million in eFunds revenues from software license and maintenance fees and fees for processing transactions for Star and other Concord affiliates. That compares with $26.7 million in revenue from Concord during the same period in 2001.
