7/24...FSIV...Continues To Report Growth Trend With Strong Earnings for Second Quarter of 2000
BROOKFIELD, Wis.--(BUSINESS WIRE)--July 24, 2000--Fiserv, Inc. (Nasdaq: FISV - news) announced today record earnings for the second quarter of 2000.
For the three-month period ended June 30, 2000, Fiserv revenues were $416.4 million, a 21% increase over the $343.3 million reported for the second quarter of 1999. Net income per share-diluted for the second quarter of 2000 was $0.34 per share, before recognizing $0.02 per share from a realized gain from sale of investment, compared to $0.27 per share for the second quarter of 1999.
For the six months ended June 30, 2000, revenues were $812.8 million, a 19% increase over the $680.4 million reported in 1999. Net income per share-diluted for the six months ended June 30, 2000, was $0.68 per share, before recognizing $0.02 per share from a realized gain from sale of investment, compared to $0.53 in 1999.
``During the first half of 2000 we reported a steady increase in revenues, the result of ongoing growth across all of our business lines,'' said Leslie M. Muma, President and CEO of Fiserv, Inc. ``As we build on the momentum reported during the first quarter, most of our business units continued to perform at or above our expectations, both in terms of internal revenue growth from existing clients and new sales contracts. Due to our second quarter earnings exceeding consensus analyst estimates by $0.02 per share, we are increasing our full-year diluted earnings per share target, excluding the impact of realized gains on sale from investment, from approximately $1.33 per share to approximately $1.35 per share.
``Our clients and prospects continue to show an increasing demand for advanced technology, especially Internet-related,'' Muma added. ``Our existing clients are looking to grow their technology offerings for their customers, and these financial organizations are turning to Fiserv as their trusted solution provider. We're seeing a continuation of the robust sales growth we saw in the first quarter, and our pipeline continues to be strong as we move into the second half of the year.''
Fiserv announced a number of major agreements in the second quarter, including First Montauk Securities Corp. of Red Bank, New Jersey, which chose Fiserv Securities, Inc. to provide clearing services for its nationwide network of more than 400 independent financial professionals and 50,000 retail and institutional customers. Laurentian Bank, Canada's seventh largest domestic bank in terms of total assets, signed an agreement to use the Fiserv InformEnt data warehouse system to develop and implement an enterprisewide integrated information management solution. The Canadian Imperial Bank of Commerce (CIBC), Canada's third largest domestic bank in terms of total assets, expanded its already extensive relationship with Fiserv by licensing Claims Workstation software for its CIBC Insurance organization. Claims Workstation is a product of The FREEDOM Group, a Fiserv unit in Cedar Rapids, Iowa.
In July, Fiserv announced that it had been chosen to provide the technological backbone for the direct bank recently launched by BMW of North America. The bank is designed to capitalize on the intense loyalty of BMW car and motorcycle owners. In addition to Internet banking services, Fiserv is providing BMW Bank of North America with account processing, check processing, plastic card production and mailing, and electronic funds transfer services. Fiserv also announced that it will double its relationship with The Chase Manhattan Bank through a new agreement to manage a portion of the institution's wholesale check operations. With the agreement, Fiserv will add more than 200 new employees to the Chase item processing center in Syracuse, New York. Fiserv has managed the Syracuse center on behalf of Chase since 1995.
Subsequent to quarter end, Muma announced that Don Dillon had been elected to the position of Chairman of the Board of Fiserv, Inc. Muma continues to serve as President and CEO. Dillon joined Fiserv in 1995 with the Company's acquisition of Information Technology, Inc. (ITI). He has served on the Fiserv Board of Directors and as a member of the executive and management committees since that time.
Fiserv, Inc. (Nasdaq: FISV - news) is an independent, full-service provider of integrated data processing and information management systems to the financial industry. As a leading technology resource, Fiserv serves more than 10,000 financial services providers worldwide, including banks, broker-dealers, credit unions, financial planners/investment advisers, insurance companies, mortgage banks and savings institutions. Headquartered in Brookfield, Wisconsin, Fiserv also can be found on the Internet at www.fiserv.com.
The disclosure set forth above contains forward-looking statements, specifically Mr. Muma's statements regarding future earnings, earnings targets, business prospects and new sales. Such forward-looking statements are subject to inherent risks and uncertainties that may cause actual results to differ materially from those contemplated by such forward-looking statements. The factors that may cause actual results to differ materially from those contemplated by the forward-looking statements include, among others, changes in customers' demand for the Corporation's products, pricing and other actions by competitors, and general changes in economic conditions or U.S. financial markets. These factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements.
-0-
FISERV, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
---------- ---------- ---------- --------
Revenues $416,434 $343,252 $812,836 $680,381
--------- -------- -------- --------
Cost of revenues:
Salaries, commissions
and payroll related
costs 198,029 163,619 387,601 323,165
Data processing
expenses, rentals
and telecommunication
costs 28,457 26,904 56,569 57,524
Other operating expenses 78,371 69,510 153,598 133,483
Depreciation and
amortization of
property and
equipment 17,419 14,891 34,168 29,659
Amortization of
intangible assets 15,626 (a) 4,825 22,802 (a) 9,373
Amortization
(capitalization) of
internally generated
computer software-net (856) 989 (244) 4,040
--------- -------- -------- --------
Total cost of revenues 337,046 280,738 654,494 557,244
--------- -------- -------- --------
Operating income 79,388 62,514 158,342 123,137
Interest expense - net (6,000) (4,315) (11,806) (8,300)
Realized gain from sale
of investment 2,928 0 2,928 0
--------- -------- -------- --------
Income before income
taxes 76,316 58,199 149,464 114,837
Income tax provision 31,289 23,861 61,280 47,083
--------- -------- -------- --------
Net income $45,027 $34,338 $88,184 $67,754
========= ======== ======== ========
Net income per share:
Basic $0.37 $0.28 $0.72 $0.55
Diluted $0.36 $0.27 $0.70 $0.53
Excluding realized
gain from sale of
investment:
Diluted $0.34 $0.27 $0.68 $0.53
Diluted (excluding
goodwill
amortization) $0.41 $0.30 $0.79 $0.58
Shares used in computing net income
per share:
Basic 122,991 123,498 122,807 123,364
Diluted 126,401 127,302 125,972 127,591
(a) Includes a charge of $8.0 million in the second quarter of
2000 for the impairment of goodwill associated with consolidation of
certain ancillary product lines in the Company's software businesses.
--------------------------------------------------------------------------------
Contact:
Fiserv, Inc.
Leslie M. Muma, 262/879-5000
Email this |
