Fiserv reports 2% drop in net income

BROOKFIELD, Wis. - Fiserv Inc. reported a 14 percent revenue increase during the third quarter, up from $1.01 billion in 3Q 2005 to $1.16 billion.

The company's operating income increased 8 percent, from $172 million in 3Q '05 to $186 million.

Net income dropped 2 percent, from $113 million in 3Q '05 to $110 million; but earnings per share increased from 60 cents in 3Q '05 to 63 cents in 3Q '06.

"The financial segment led out strong third quarter performance. Solid revenue growth and increasing margins are indicative of our enhanced focus on delivering results," said Jeff Yabuki, Fiserv's president and chief executive. "We are pleased with our results and we are on track to achieve our full-year targets."

Fiserv segments

The Financial division reported a 10 percent revenue increase, up to $788 in 3Q '06 million from $719 in 3Q '05.

The Health division realized a 28 percent revenue increase, up to $335 million in 3Q '06 from $260 million.

And the Investment division reported a 4 percent increase, up to $34 million in 3Q '06 from $32.7 million in 3Q '05.