News

TSA's 1Q revenue shows improvement from '04-'05

February 9, 2006

OMAHA, Neb. - Transaction Systems Architects Inc., a division of ACI Worldwide that develops e-payment and EFT software, announced earnings for the first quarter of 2006, which ended Dec. 31, 2005.

The company's first quarter 2006 revenue hit $85.1 million, a 6 percent increase from the same period last year. Net income for the quarter came in at $15,190, or 40 cents per share, up 15 percent from $12,923, or 34 cents per share, in 1Q '05.

As was the case in 1Q '05, software license fees accounted for the majority of the company's first-quarter revenue, bringing in $43,392 compared to $25,318 for maintenance fees and $16,365 for services. However, earnings for software fees, when compared to 1Q '05, fell $4,414 from $47,806. Earning for maintenance also fell, from $22,080 in '05, while services earnings improved $5,645, from $10,720 in '05.

"We're off to a nice start for fiscal 2006 and we believe the enterprise is performing well," said TNS chief executive Philip G. Heasley. "In this the first quarter of our new structure we have produced good revenues, increased our customer base and produced strong EPS. These results do contain both additional and new expenses." (Read also, TSA combines business units, operates under ACI.) and ACI's parent company reports 13% quarterly revenue increase.)

TSA added seven new customers during the quarter and sold 32 new applications to existing customers. In addition, 15 customers licensed capacity upgrades valued at more than $100,000.

Activity during the quarter included licensing Base24-es to a top bank in Pakistan, Base-24 to a top Mexican retailer, and capacity upgrades by several top 500 world banks. The company also licensed its Proactive Risk Manager fraud detection solution to both new and existing customers.

"As part of the combination of business units announced in October, we have rebranded our solutions under the ACI Worldwide name," Heasley said. "We believe that this will allow us to leverage the ACI brand and more effectively globalize our entire solutions portfolio."