STRATEGIC PARTNERS
December 30, 2001
SCOTTSDALE, Ariz. -- eFunds Corporation (Nasdaq: EFDS), said that revenues and profits for the fourth quarter of 2001, which ends Dec. 31, while expected to be above year-ago results, will not meet the company's previous projections. eFunds' new estimate is for fourth quarter revenues in the range of $127 million to $130 million, with diluted earnings per share of 20 cents to 23 cents.
These expectations are below previous guidance expressed in the company's Oct. 26 earnings release and subsequent conference call. eFunds had expected fourth quarter revenues to be in a range of $140 million to $145 million with basic and diluted earnings per share to be approximately 30 cents and 29 cents, respectively, and an annualized effective tax rate of 35.5 percent.
Annual revenues for 2001 are estimated to be in the range of $515 million to $518 million, or more than 23 percent over 2000 revenues of $418 million, according to eFunds. Diluted earnings per share for 2001 are estimated to be in the range of 76 cents to 79 cents, compared to diluted earnings per share of 34 cents in 2000, excluding special items in both years.
These estimates assume an annualized effective tax rate of 35 percent.
Gus Blanchard, chairman and chief executive officer of eFunds, blamed the overall economic slowdown, as well as the timing of new contracts and lengthening sales cycles, for his company's expectations of lower earnings.
He said several eFunds clients have deferred buying decisions on large DebitBureau-based and professional services (business process management and call center) contracts. "While prospects for eventually closing these deals remain encouraging, the decision points have clearly been extended into next year," he said.
He added, "However, despite this current difficult environment, we continue to be optimistic about the long-term opportunities for eFunds. Our balance sheet is strong and cash balances healthy; cash flow is positive and improving; operating margins are growing; and our programs to lower operating expense, while increasing sales productivity, are beginning to show results."
More information on eFunds' fourth-quarter and full-year 2001 results will be available on Jan. 30, 2002, when the company intends to report its final results.
