STRATEGIC PARTNERS
March 11, 2002
BUDAPEST -- Euronet Services Inc. announced first quarter revenues of $8.2 million, double the revenues of the previous quarter and four times the revenues for first quarter 1998. The operating loss in the first quarter was $7.7 million, compared with $3.8 million a year earlier. The net loss was $9.7 million, compared with a year-earlier net loss of $3.6 million.
The losses were in line with management's expectations, as the company continues its strategy of controlled expansion and revenue growth.
This reporting period was the first full quarter in which Euronet's newly-acquired software subsidiary, ARKSYS, was consolidated. For the quarter, ARKSYS software and related services accounted for $2.8 million or 34 percent of total revenues, while Euronet's ATM network and related services contributed $5.4 million or 66 percent of revenues.
ARKSYS signed a record level of new software sales contracts in the first quarter. Backlog software orders (defined as fees specified in contracts which have been executed and for which revenue will be recognized within one year) totaled $5.1 million as of March 31, up from $2.3 million on Dec. 31, 1998.
Euronet chairman and CEO Michael J. Brown, commented, "We are encouraged by the trends we are seeing in this quarter and expect even stronger returns later in the year as we begin to reap the benefits of our more vertically-integrated business line. The combination of ARKSYS software with Euronet's ATM network services has created new opportunities for greater revenue growth and economies of scale."
In other Euronet news, the company named Daniel C. Stevens, a senior financial services executive with strong international experience, as its new chief financial officer.
As CFO, Stevens is responsible for the finance-related areas of Euronet's entire operations. He is based in Overland Park, Kan., together with Brown.
Stevens was most recently a partner in Rochdale Principals, an agricultural finance venture organized with other senior executives in the Kansas City area. Prior to that, he was senior vice president, chief financial and risk officer for U.S. Central, a financial intermediary and technology, operational and payment provider for the U.S. credit union industry.
He also served as senior vice president and chief financial officer-USA for the trading, corporate finance and branch operations of the Dutch bank ABN AMRO, as well as chief financial officer for the US operations of the French bank Credit Agricole.
Euronet operates 1,373 ATMs as part of its proprietary network, including 367 in Hungary, 410 in Poland, 452 in Germany, 72 in Croatia, 55 in the Czech Republic, 11 in the U.K. and six in France. In addition, Euronet operates 194 bank-owned ATMs under outsourcing agreements, including 173 in Hungary 19 in Poland and two in France.
