News

eFunds hits revenue record in 3rd quarter

October 28, 2001

SCOTTSDALE, Ariz. --eFunds Corporation(Nasdaq:EFDS-news), a provider of electronic payment, risk management and related technology and business process management services, said revenue for the quarter ended Sept. 30, 2001 was a record $135.4 million, an increase of 30 percent over year-earlier revenue of $104 million.

Excluding special items in both periods, net income for the third quarter of 2001 increased to $11.6 million from $4.4 million in 2000, an increase of more than 160 percent, according to an eFunds news release.

Basic and diluted earnings per share increased to 25 cents and 24 cents, respectively, from basic and diluted earnings per share of 10 cents for the third quarter of 2000.

Excluding special items, operating income increased 132.9 percent to $18 million and EBITDA (earnings before interest, taxes, depreciation and amortization) climbed to $28.2 million for the third quarter of 2001, an increase of 82.6 percent over the comparable period last year.

During the quarter, a special pretax credit of $2.5 million resulted from the reduction of the company's reserve for future government contract losses.

On an "as reported' basis, net income rose to $13.2 million, or 29 cents per basic and 28 cents per diluted share, in the quarter, compared to $3.9 million and nine cents per basic and diluted share respectively, in the third quarter last year.

One highlight of the third quarter was the execution of an agreement to purchase all of the remaining equity interests in Access Cash International for approximately $43.9 million in cash.

In addition to providing additional debit transaction volumes and revenue, the Access Cash network is expected to provide a strategic platform for future expansion, according to the news release. This transaction, which was closed in October 2001, represents the company's first acquisition since separating from Deluxe Corporation last year.