News

Revenues up 27 percent in eFunds' 2nd quarter

July 29, 2001

SCOTTSDALE, Ariz. --eFunds Corporation(Nasdaq:EFDS), announced that total revenues for the three-month period ended June 30, 2001 increased 27 percent over the comparable period in the prior year to $128.2 million.

Reported net income increased over the comparable period in the prior year to $8.7 million, or 19 cents per basic share, compared to net income of $3.7 million, or nine cents per basic share, for the same period in 2000, before special charges. With charges included, net income for the quarter ended June 30, 2000 was a loss of $4.5 million, or 11 cents a share.

Special charges for the three and six months ended June 30, 2000 consist of a net provision of $9.7 million for losses on certain electronic benefit transfer contracts and $2.9 million for costs related to the company's separation from Deluxe Corporation.

The company also incurred $3.2 million of special charges in the first half of 2001, primarily related to its closure of its operations in Bothell, Wash.

For the six months ended June 30, 2001, revenues increased 25.6 percent to $252.7 million versus revenues of $201.2 million for the same period in 2000.

Excluding special charges in both periods, net income for the six months ended June 30, 2001 was $14.9 million, or 33 cents per basic share, compared to net income of $5 million, or earnings per basic share of 12 cents, in 2000.

Including special charges in both periods, net income for the half year ended June 30, 2001 was $12.8 million, or 28 cents per basic share, compared to a year-earlier net loss of $3.4 million, or 8 cents per basic share.

Revenues from transaction processing products and services, which represented approximately 45 percent of total second quarter revenues in 2001, increased 55.1 percent over the second quarter of 2000.

According to an eFunds news release, the company's ATM management and deployment agreement was a major contributor to this growth as well as continued increases in transaction volumes, which increased an average of approximately 21 percent over the previous year across all categories of ATM, POS and ACH processing. Slightly increased revenues from the company's government services business also contributed to the year-over-year transaction processing growth.

The company expects a recently-announced branding agreement with the Ontario, Calif.-based CO-OP Network to improve the performance of the ATM contract. eFunds expanded its ATM deployment and management agreement with St. Paul, Minn.-based Access Cash International to include equipment sales and extended the contract through March 2002.