Wells Fargo has launched its ‘Single Sign-On’ service. Wells Fargo on-line customers can gain access banking, bill pay, mortgage, student, personal, home equity and auto loans, full-service and discount brokerage and credit card accounts by entering their social security number and password once.
Blackstone (), one of the nation’s leading electronic providers of prepaid telecommunications products and services, Monday named John Marshall to the newly created position of president of Blackstone’s Prepaid Systems Group, a wholly owned subsidiary of Blackstone Communications.
Bringing over 25 years of experience in the electronic payment industry, John was most recently senior vice president, office of the president, for Hypercom (NYSE:HYC) (http://www.hypercom.com), a leading global provider of electronic payment solutions that add value at the point-of-sale for consumers, merchants and acquirers. In his new position, John will be responsible for the overall direction, coordination and evaluation of the Prepaid Systems Group, including the day-to-day operations, sales & marketing, and long term strategic planning.
According to John, “The opportunity that Blackstone has to quickly bring two large, but separate industries together (prepaid calling cards and credit cards) and better serve the merchant, is a ‘once in a lifetime opportunity.’ I am very happy to be a part of the Blackstone team.”
The Blackstone POS terminal, utilizing the Hypercom ICE 5500, is revolutionizing the electronic transaction industry. By integrating the processing of all major credit cards (MasterCard, Visa, American Express, Discover Card and Diners Club), ATM/bank cards and EBT (electronic benefits transfer) with the sale of prepaid cellular and prepaid calling cards into one, easy-to-use POS terminal.
Luis Arias, Blackstone’s president and chief executive officer added, “For the last several months, I have been trying to entice John to join Blackstone. I am thrilled to have him on board and look forward to announcing our major successes in the coming weeks.”
Blackstone has rapidly become one of the country’s largest providers of prepaid telecommunications products and services with over 300,000 retail locations nationwide. Established and headquartered in Miami, Florida since 1995, Blackstone is privately owned, and managed by a team of executives experienced in payment processing, networking, information services, oil & gas and prepaid telecommunications. Under their direction, Blackstone has developed ongoing distribution relationships with internationally recognized companies such as AT&T, VoiceStream, ADMA, Americatel, Cingular, Embratel, Hypercom, Qwest and Universal Savings Bank. Today, Blackstone is successfully merging two industries, prepaid telecommunications and electronic transactions, into one terminal to the benefit of merchants across the United States.
Blackstone POS are trademarks of Blackstone Communications Co., US and foreign patents pending.
Homestead Technologies Inc., a leading provider of Web site hosting services, and RocketCash LLC, the leading solution for shopping online without a credit card, announced an agreement to allow teens who want to build Web sites at Homestead the ability to subscribe to Homestead services using RocketCash services. Through the Homestead Personal Web site building service, anyone can build a Web site to connect and communicate with family and friends.
“Teens have clearly embraced Web sites as a better way to communicate with friends and family,” says Rich Pearson, vice president of marketing at Homestead Technologies. “Our relationship with RocketCash opens the door for teens to be able to take advantage of all Homestead services.”
Anyone who wishes to take advantage of Homestead’s award-winning Web site building services can use a RocketCash account as a form of payment. RocketCash is a free online service that enables people to shop and buy from many online merchants without requiring a credit card. To obtain a RocketCash account, users only need to have an email address and complete the signup form by going to . RocketCash sets up an online debit account by receiving funds from mailing in a check or money order or from a credit card. Users can then use their account to shop online at over 100 merchants, including Homestead, in the RocketCash mall. Through RocketCash’s patent-pending technology users have the freedom and independence to shop on their own while giving parents the peace of mind that comes with security, control and the opportunity to teach financial responsibility.
“In response to teens’ desire to shop and spend online, RocketCash has developed a free web service that solves the problem of teens always having to ask their parents for a credit card,” says Carol Kruse, co-founder and sr. vice president of marketing at RocketCash. “We are excited about adding Homestead to the RocketCash mall and giving our members a fun way to communicate with friends and family by building a Homestead Web site.”
Homestead Technologies, Inc. is the leading Web site building service that provides consumers and professionals with a non-technical solution to build and maintain an Internet presence. Homestead members can take advantage of the Homestead Professional service or the Homestead Personal service. Homestead Professional is a powerful and intuitive new Web site building service designed for professionals and small businesses who need an online presence but lack the time and technical resources to create one. Homestead Professional offers powerful publishing, hosting, marketing and commerce capabilities that help professionals easily and efficiently establish and maintain a unique Internet presence. Homestead Personal is the company’s award-winning, easy-to-use service that enables anyone to communicate with friends and family through highly personalized Web sites. More than 12 million registered members have built customizable Web sites using the company’s proprietary, drag-and-drop Element technology. Elements include everything from text boxes, buttons and photos to dynamic features such as chat rooms and e-commerce payment processing. The company is based in Menlo Park, California, and its services are available at .
CIBC announced third quarter Operating Earnings
(which exclude the sale of subsidiaries, an adjustment for tax rate changes
and the net impact of Amicus) of $525 million or $1.29 per share, diluted.
Operating Return on Equity was 20.0%. Reported Earnings for the third quarter
were $460 million or $1.12 per share, diluted, (which include the net impact
of building Amicus, $(0.17); a gain on the sale of subsidiaries, $0.05; and an
adjustment for tax rate changes, $(0.05)). Adjusted Earnings (which exclude
only the sale of subsidiaries and an adjustment for tax rate changes) were
$459 million or $1.12 per share, diluted.
Operating Earnings for the nine months ended July 31, 2001, were $1,631
million, compared to $1,787 million for the same period last year. Operating
Earnings per share, diluted, were $3.99, compared to $4.21 for the same period
in 2000. Reported Earnings for the first nine months of 2001 were $1,444
million or $3.51 per share, diluted, compared to $1,728 million or $4.06 per
share, diluted, for the same period of 2000. Adjusted Earnings for the nine
month period were $1,445 million or $3.51 per share, diluted compared to
$1,698 million or $3.99 per share, diluted for the same period last year.
Year-to-date, CIBC’s Operating Return on Equity was 21.2%. Since November
1, 1999, CIBC’s total return to shareholders is up 69.5%, the best total
return among the major Canadian banks.
“Our performance in a less than favourable business environment is a
clear reflection of our ongoing effort to build a broad-based franchise that
is capable of weathering downturns in the market,” said John S. Hunkin,
Chairman and Chief Executive Officer. “We remain confident that — through the
fundamental strength and diversity of our business portfolio — we are well-
positioned for growth as market conditions improve.”
To strengthen CIBC’s position, Hunkin said the company is continuing to
focus on four key areas, including:
As in the first half of the year, credit conditions continued to be
challenging in the U.S. during the quarter, with trades and services,
manufacturing and telecommunications being the sectors most affected. “We are
managing our business on the premise that conditions are unlikely to improve
during the fourth quarter,” said Hunkin. CIBC continues to manage its market
risk at reduced levels consistent with its goal of low earnings volatility.
Market risk within CIBC’s trading book, measured by risk measurement units,
fell during the quarter to $12.6 million as of July 31, 2001, compared to
$14.8 million at the end of the second quarter and $24.7 million as of October
The growth of Amicus, CIBC’s co-branded retail electronic banking
business, continues to exceed expectations in the area of customer
acquisition. During the quarter, Amicus acquired 121,000 new customers,
bringing the total number of registered customers to 779,000, up 18% from the
previous quarter and 104% from the same quarter in 2000. A highlight during
the quarter was the strategic alliance CIBC entered into with Ahold USA, Inc.,
a leading food retail and food service company, to provide electronic banking
services to the northeastern U.S. market through ABMs, telephone call centres,
the Internet and in-store pavilions. CIBC’s alliance with Ahold is expected to
launch next year and builds upon existing Amicus partnerships with Loblaw
Companies Limited in Canada and Safeway Inc. and Winn-Dixie Stores, Inc. in
Ongoing Business Development
In addition to Amicus, CIBC is continuing to focus on growth across all
of its business units. Developments in the quarter include:
— Electronic Commerce
– PC banking customers (non-Amicus business) grew by 13% to 1.16
million during the quarter. Year-over-year, PC banking customers
are up 66%.
– Telephone banking customers grew to 2.92 million, up 7% from the
second quarter and 26% from the third quarter of 2000.
— Retail and Small Business Banking
– Supporting its goal to provide its retail and small business
customers with Smart, Simple Solutions, CIBC continued its
technology upgrade in the quarter with the installation of 1,090
counter workstations in its branch network. Year-to-date, 1,590
upgraded workstations have been installed in 330 branches.
– To make it easier for its customers to do business, CIBC has
extended operating hours at 86 branches across Canada year-to-date.
– CIBC also continued to expand its bizSmart initiative, with the
opening of nine additional kiosks during the quarter, increasing the
total number operating across Canada to 37. CIBC also expanded
bizSmart’s product offering to include a Personal GIC and a Personal
Line of Credit which offers a credit limit up to $50,000 at an
interest rate of prime plus 1.75%.
— Wealth Management
– CIBC Investor Services Inc. introduced a new website,
www.investorsedge.cibc.com , to enhance and simplify online investing
for customers. The new website has improved navigation and expanded
features including access to CIBC World Markets Canadian equity
– As at the end of June, CIBC Mutual Funds ranked second among the big
six Canadian banks in year-to-date net sales and moved up to third
among all Canadian mutual fund companies. CIBC continued to rank
first in index fund net sales for fiscal 2001, as at June 30, 2001.
— CIBC World Markets
– CIBC World Markets participated in a number of significant
transactions during the quarter, including acting as the sole
underwriter and lead arranger of a US$2.0 billion credit facility to
finance George Weston Limited’s acquisition of Bestfoods Baking
Company. CIBC World Markets was also joint arranger in the financing
of Apax Partners & Co., and Hicks, Muse, Tate & Furst Inc.’s
acquisition of Yell Directories, which include the U.K. Yellow
Pages, from British Telecommunications plc for pnds stlg 2.14
– CIBC World Markets launched its research broadcast via its new
Internet webcast facility. CIBC eTV is a proprietary, web-based
online television station that provides CIBC’s clients with leading
edge research. More information is available at
Overall Performance and Accountability
During the quarter, CIBC took additional steps in support of its
commitment to maximize the value of its franchise. First, the company
announced the sale of its Guernsey private banking business to The Bank of
N.T. Butterfield & Son Limited. The sale generated an after-tax gain of $22
million and is consistent with Wealth Management’s strategy to focus on
supporting its North American client base and growing its Caribbean and Asian
Second, CIBC announced it is in advanced discussions with Barclays PLC,
one of the largest financial services groups in the United Kingdom, to combine
the retail, corporate and offshore banking operations of both companies in the
Caribbean into a new entity called FirstCaribbean International Bank(TM).
Under the proposed transaction, which is expected to close early next year,
CIBC and Barclays would each own approximately 45% of the new entity, with the
remainder held publicly. CIBC believes the future earnings potential from its
interest in FirstCaribbean will be greater than continuing with a controlling
interest of a smaller operation.
“Our outlook for the fourth quarter remains cautious, particularly in
light of market conditions in North America,” said Hunkin. “Our focus moving
forward will be to, above all, continue to focus on our customers’ needs; all
our businesses are getting more competitive and we have to be even more
proactive and creative to grow revenue. Also, we will defer all non-essential
spending, but continue to make selective strategic investments, striking the
right balance between short term earnings strength and longer term value
FINANCIAL AND OPERATIONS COMMENTARY – OVERVIEW
CIBC’s third quarter Operating Earnings, as noted in the following table,
were $525 million, down $117 million from the third quarter of 2000 and up $31
million from the prior quarter. Operating Earnings for the quarter were lower
than a year ago due to the effects of continued weaker markets, which were
partially offset by a greater proportion of income being earned in
subsidiaries that operate in lower tax jurisdictions. The improvement in
Operating Earnings from the prior quarter reflects stronger results in
Electronic Commerce and CIBC World Markets. Operating EPS, diluted, were
$1.29, down from $1.54 in the same quarter last year and up from $1.19 in the
prior quarter. Operating Return on Equity was 20.0%, compared with 25.5% in
the third quarter of 2000 and 19.4% in the previous quarter.
Reported Earnings were $460 million for the quarter, down $141 million
from the same quarter a year ago and down $9 million from the prior quarter.
Reported EPS, diluted, were $1.12, down from $1.43 in the third quarter of
2000 and comparable to $1.13 in the prior quarter. Reported Return on Equity
for the quarter was 17.4%, compared with 23.8% in the same quarter last year
and 18.4% in the prior quarter.
Reported Earnings for the nine months ended July 31, 2001 were $1,444
million, down $284 million from the same period in 2000. Reported EPS,
diluted, and Reported Return on Equity for the nine months ended July 31, 2001
were $3.51 and 18.6% respectively, versus $4.06 and 23.5% for the same period
FINANCIAL AND OPERATIONS COMMENTARY – SEGMENTED
CIBC’s management structure has four business lines — Electronic
Commerce, Technology and Operations; Retail and Small Business Banking; Wealth
Management; and CIBC World Markets. These business lines are supported by four
functional groups — Treasury and Balance Sheet Management (TBM); Risk
Management; Administration; and Corporate Development.
In 2000, CIBC introduced the Manufacturer / Customer Segment /
Distributor Management Model to measure and report the results of operations
of the four business lines. Under this model, internal payments for sales
commissions and distribution service fees are made between business lines. As
well, revenue and expenses relating to certain activities (such as the
payments business described under Electronic Commerce) are fully allocated to
other business lines. In addition, the revenue and expenses of the four
functional groups are generally allocated to the four business lines. This
model allows management to better understand the economics of our customer
segments, our products and our delivery channels.
In 2001, CIBC continued to refine certain estimates and allocation
methodologies underlying the model. Key changes include refinements to
customer segmentation and cost recovery methodologies. These changes primarily
affected Imperial Service in the Wealth Management business line and both
retail banking and small business banking in the Retail and Small Business
Banking business line.
Prior year segmented financial information has been restated to conform
with the presentation used in 2001. In 2001, the sales and service fees paid
to segments for certain products were renegotiated among the business lines.
Prior year financial information was not restated to reflect these fee
Business line return on equity is measured using risk-adjusted (economic)
capital which in many instances may be different from regulatory capital. The
difference between economic capital allocated to the business lines and
regulatory capital is held in Corporate and Other. From time to time
enhancements are made to CIBC’s economic capital model as part of our risk
measurement process. These changes are made prospectively.
Net income for the quarter was $47 million, down $12 million from the
third quarter of 2000 due to higher Amicus spending to support customer growth
and increases in the provision for credit losses, partially offset by strong
revenue growth in cards and mortgages. Net income was up $14 million from the
prior quarter, after excluding the second quarter after-tax gain of $43
million from the sale of the Merchant Card Services business. The increase was
primarily due to strong revenue growth in cards and mortgages, partially
offset by higher spending in Amicus. Excluding the gain, net income for the
nine months ended July 31, 2001 was $139 million, down $32 million from the
same period in 2000.
Revenue was $497 million, up $72 million from the third quarter of 2000,
and up $58 million from the prior quarter after excluding the pre-tax gain of
$58 million from the sale of the Merchant Card Services business. Revenue,
after adjusting for the gain, was $1,392 million for the nine months ended
July 31, 2001, up $157 million from the same period in 2000.
Revenue details are as follows:
– Mortgages includes both residential and commercial mortgages. Revenue
was $130 million for the quarter, up $49 million from the third
quarter of 2000 due to a 12% increase in residential loan balances
outstanding and improved spreads. Revenue was up $22 million from the
prior quarter due to an increase in prepayment interest amounts
related to refinancing, a 4% increase in residential loan balances
outstanding and three extra days this quarter versus the prior
– Cards comprises a portfolio of credit cards. Revenue was $266 million
for the quarter, up $20 million from the third quarter of 2000
primarily due to a 19% growth in average balances under administration
and lower cost of funds, partially offset by the loss of revenue from
the sale of the Merchant Card Services business. Revenue was up $12
million from the prior quarter after excluding the gain. This was due
to a 3% increase in average balances under administration, an 18%
increase in purchase volumes, lower cost of funds and three extra days
in the quarter, which more than offset the loss of ongoing revenue
from the Merchant Card Services business.
– Insurance provides creditor insurance products. Revenue was $13
million in the quarter, down $33 million from the third quarter of
2000 due to discontinued insurance businesses, partially offset by
growth in creditor insurance revenue. Revenue was comparable to the
– Other includes Amicus, electronic and self-service banking, the
allocation of a portion of treasury revenue and INTRIA third-party
technology services. Revenue was $88 million in the quarter, up $36
million from the third quarter of 2000 and up $23 million from the
prior quarter. The increase in revenue reflects higher treasury
revenue and Amicus growth.
Non-interest expenses were $354 million, up $63 million from the third
quarter of 2000 as a result of Amicus business growth, partially offset by
lower expenses related to discontinued insurance businesses. Non-interest
expenses were up $25 million from the prior quarter due to Amicus growth, and
the timing of Technology and Operations allocations to the business lines. Non-
interest expenses for the nine months ended July 31, 2001 were $999 million,
up $120 million from the same period in 2000.
The regular workforce headcount totaled 16,371 at quarter end, up 421
from the prior quarter in order to support business growth in Amicus and
mortgages. As well, staffing was increased in Technology and Operations, the
costs of which are allocated to the business lines. Headcount increases were
also experienced in electronic banking to improve service levels.
Developments in the quarter included:
– Amicus and Ahold USA, Inc., a leading food retail and food service
company, announced an intention to forge an alliance to provide
electronic banking services to the northeastern U.S. market through
ABMs, telephone call centres, the Internet and in-store pavilions.
– Amicus added 48 new pavilions during the quarter, increasing the total
number of pavilions operating to 378. Also during the quarter, Amicus
acquired 121,000 new customers, bringing the total number of
registered customers to 779,000, up 104% from the same quarter last
– Amicus commenced selling four index mutual funds and a money market
fund in Florida through its grocery store pavilions in Winn-Dixie
– CIBC continued to expand its extended speech recognition telephone
service within its retail banking network during the quarter. In
addition to being able to register and pay bills by phone using only
their voice, CIBC’s 2.9 million telephone banking customers will be
able to complete other voice-command transactions in the coming months
including: mortgage information requests, cheque reordering, as well
as receiving information on branch and bank machine locations.
– During the quarter, it was announced that Amicus and Yahoo! Inc. will
no longer provide person-to-person banking services on Yahoo! Inc.’s
U.S. website. Yahoo! Inc.’s decision to provide this service globally
did not align with Amicus’ strategy of a continued focus on core
retail businesses in North America.
Net income was $96 million, consistent with the third quarter of 2000 as
increased infrastructure investment more than offset higher revenue and a
lower provision for credit losses. Net income was down $4 million from the
prior quarter mainly due to increased infrastructure investment, partially
offset by higher revenue. Net income for the nine months ended July 31, 2001
was $324 million, up $40 million from the same period in 2000.
Revenue was $659 million, up $8 million from the third quarter of 2000.
The increase resulted from volume growth on personal deposits and consumer
loans and higher treasury revenue, partially offset by lower student loan
revenue, declining spreads on deposits and the effects of refinements to
segment revenue among the business lines. Revenue was up $26 million from the
prior quarter, primarily due to three extra days this quarter and higher
treasury revenue, partially offset by lower deposit spreads and the effects of
refinements to segment revenue among the business lines. Revenue for the nine
months ended July 31, 2001 was $1,950 million, up $40 million from the same
period in 2000 primarily due to volume growth on personal deposits and
Revenue details are as follows:
– Retail banking is the individual customer segment (customers other
than those in Imperial Service). Revenue is earned from sales and
service fees paid by CIBC’s product groups, primarily the investments,
deposits and lending products businesses. Revenue was $249 million in
the quarter, consistent with the third quarter of 2000. Lower deposit
spreads and the effects of refinements to segment revenue among the
business lines were offset by increased sales and service fees.
Revenue was up $5 million from the prior quarter due to three extra
days this quarter and higher sales and renewal fees, partially offset
by the effect of lower rates.
– Small business banking is the customer segment supporting small
owner-operated businesses, including owners’ personal holdings.
Revenue is earned from sales and service fees paid by CIBC product
groups, primarily the investments, deposits and lending products
businesses. Small business banking also includes bizSmart, which earns
revenue from net interest spreads. Revenue was $167 million in the
quarter, down $9 million from the third quarter of 2000 due to lower
deposit spreads and the effects of refinements to segment revenue
among the business lines. Revenue was up $7 million from the prior
quarter due to three extra days in the quarter.
– West Indies is a full-service banking operation in eight countries,
servicing all customer segments through a 45 branch network and
electronic delivery channels. Revenue is earned on net interest
spreads and sales and service fees. Revenue was $70 million in the
quarter, comparable with the third quarter of 2000 and the prior
– Lending products comprises personal (including student loans), small
business and agricultural lending portfolios. Revenue is earned
through net interest spreads and service fees; part of this revenue is
paid to the customer segments. Revenue was $155 million in the
quarter, unchanged from the third quarter of 2000. Improved consumer
and small business interest spreads and higher consumer loan volumes
drove revenue up, but this was largely offset by a $11 million
decrease in student loan revenue. Student loan revenue declined as a
result of a strategic business decision to exit risk share lending
programs when CIBC’s contract with the federal government expired last
year. Revenue was unchanged from the prior quarter as the effect of
three extra days was offset primarily by higher sales and renewal
– Other consists primarily of the allocation of a portion of treasury
revenue. Revenue was $18 million in the quarter, up $18 million from
the third quarter of 2000 and up $11 million from the prior quarter
largely due to higher treasury revenue.
Non-interest expenses were $485 million, up $38 million from the third
quarter of 2000 due to salary increases effective January 1, 2001, extended
branch hours, staffing of small business advisory teams and infrastructure
investment. Non-interest expenses were up $30 million from the prior quarter
primarily due to three extra days in the quarter and infrastructure
investment. Non-interest expenses for the nine months ended July 31, 2001 were
$1,372 million, up $79 million from the same period in 2000.
The regular workforce headcount totaled 13,143 at quarter end, up 216
from the second quarter with the additional headcount being primarily in
retail banking and small business banking.
Developments in the quarter included:
– CIBC and Barclays PLC announced that advanced discussions are underway
to combine their retail, corporate and offshore banking operations in
the Caribbean, to create FirstCaribbean International Bank(TM). Under
the proposal, which is subject to government and regulatory approval,
Barclays PLC and CIBC would each own approximately 45% of the ordinary
share capital of FirstCaribbean International Bank(TM), with the
remainder held publicly and with the intention to increase public
share holdings up to 20% as soon as practicable. FirstCaribbean
International Bank(TM) would retain the listings of CIBC West Indies
Holdings Limited in Barbados, Trinidad and Tobago and Jamaica.
– Effective August 1, 2001, the provinces of Ontario, Alberta and Prince
Edward Island entered into alternative arrangements for disbursing
student loans. CIBC continues to disburse student loans in the
provinces of Newfoundland, New Brunswick, and Quebec, and is protected
against credit risk exposure under these programs. As the various
student loan programs migrate to a direct lending program, CIBC
continues to leverage its investment in EDULINX Canada Corporation for
the servicing of student loans.
– For customer convenience, 86 branches across Canada have extended
business hours so far this year. By year end, this number is expected
to more than double and almost 30% of our branches will be open on
– Robbery prevention initiatives reduced branch robberies 38% year-to-
date compared with the same period a year ago.
– CIBC’s technology upgrade in retail banking continued, with the
installation of 1,090 upgraded counter workstations this quarter.
Year-to-date, 1,590 upgraded workstations have been installed in 330
branches. In the fourth quarter, we plan to install 678 more counter
workstations in 172 branches and will start the rollout of the new
Windows 2000 based technology platform in approximately 200 branches.
– Small Business Way, a training initiative which provides a
comprehensive small business banking accreditation program, was
introduced at the beginning of the quarter.
– Despite the current economic slowdown, impaired personal loans and
personal lines of credit are currently trending favourably versus the
prior two years, the result of enhanced front-end credit adjudication
and back-end collection processes. Small business and agricultural
impaired loans are trending consistently with the previous two years.
– Nine bizSmart kiosks were opened during the quarter (five in Alberta
and two in each of British Columbia and Ontario), bringing the total
to 37 bizSmart kiosks in operation at quarter end. As well, Personal
Line of Credit, which offers a credit limit up to $50,000 and an
interest rate of prime plus 1.75%, and Personal GIC were added to the
bizSmart product line. In addition, an Internet application for
business customers was also launched.
(1) The calculation of the asset growth rate was adjusted this quarter
to exclude assets that were converted to index mutual funds, at
CIBC’s discretion, in March, 2001.
Net income for the quarter was $90 million. Excluding an after-tax gain
of $22 million from the sale of the Guernsey private banking business, net
income was down $11 million from the third quarter of 2000 primarily due to
lower revenue. Net income, after adjusting for the gain, was down $7 million
from the prior quarter as a result of increased expenses. Excluding the gain,
net income for the nine months ended July 31, 2001 was $253 million, down $69
million from the same period last year due to lower revenue from retail
trading activities and expenses incurred to exit certain business operations.
The decrease was also due to higher than normal annual incentive fees earned
on risk-free participation in the profits of investment partnerships in the
Revenue for the quarter was $598 million. Excluding the gain, revenue was
down $54 million from the third quarter of 2000 as weaker market conditions
prevailed, and up $15 million from the prior quarter. Revenue for the nine
months ended July 31, 2001 was $1,772 million, down $343 million from the same
period in 2000, after adjusting for the gain, primarily due to lower annual
incentive fees and trading volumes.
Revenue details are as follows:
– Imperial Service is the customer segment offering financial advice to
CIBC’s high-value clients. Specially trained financial advisers
support the financial planning and product fulfilment needs of these
clients. Revenue is earned from sales and service fees paid by CIBC’s
product groups, primarily the investments, deposits and lending
products businesses. Revenue was $168 million in the quarter, up $23
million from the third quarter of 2000 due to business volume
increases and revenue allocations renegotiated during the year.
Revenue was up $8 million from the prior quarter.
– Private client investment and asset management generates fees and
commissions from full-service retail brokerage providing equity and
debt investments, mutual fund products, asset management services and
advisory and financial planning services to individuals in Canada and
the United States. Revenue was $256 million in the quarter, down $53
million from the third quarter of 2000 primarily as a result of lower
trading volumes. Revenue was down $11 million from the prior quarter
due to prevailing weaker markets.
– Global private banking and trust provides a comprehensive range of
global solutions, including investment management, trusts, private
banking and global custody to meet the financial management needs of
individuals, families and corporations with significant financial
resources. Revenue for the quarter was $53 million. Excluding the
gain, revenue was $31 million, down $9 million from the same quarter
last year due to the loss of ongoing revenue from CIBC Suisse S.A.
exited in the fourth quarter of 2000. Revenue, after adjusting for the
gain, was comparable with the prior quarter.
– Wealth products include mutual funds, investment management services,
online and discount brokerage services and GICs. These investment
products are developed and distributed to retail, small business and
Imperial Service customers. Revenue was $98 million in the quarter,
down $30 million from the third quarter of 2000. The decrease was due
primarily to lower discount brokerage revenue resulting from declines
in trading activity, as well as increases in the sales and service
fees paid to customer segments. GIC revenue decreased from the same
quarter last year due to narrower net interest margins, along with
increases in commissions paid to customer segments within CIBC.
Revenue was consistent with the prior quarter.
– Other consists primarily of the allocation of a portion of treasury
revenue. Revenue was $23 million in the quarter, up $15 million from
the third quarter of 2000 and up $11 million from the prior quarter,
due to increased treasury revenue.
Non-interest expenses were $488 million, down $26 million from the third
quarter of 2000 primarily due to revenue-related variable expenses. Non-
interest expenses were up $23 million from the prior quarter as a result of
increases in non-credit losses, legal expenses and recruitment expenditures.
Non-interest expenses for the nine months ended July 31, 2001 were $1,413
million, down $192 million from the same period in 2000 due to decreases in
variable expenses associated with lower revenue.
The Wealth Management regular workforce headcount totaled 6,722 at
quarter end, down 136 from the prior quarter primarily due to the sale of the
Guernsey private banking business.
Developments in the quarter included:
– CIBC Investor Services Inc. introduced a new website at
www.investorsedge.cibc.com to improve and simplify the online
investing experience for Investor’s Edge and Imperial Investor Service
clients. The new website has easy-to-use navigation with a host of new
features and functions including access to CIBC World Markets Canadian
equity research. A new online Alerts service allows clients to receive
personalized stock notifications to keep abreast of the latest
developments affecting their investment portfolios.
– During the quarter, CIBC sold its Guernsey private banking business to
The Bank of N.T. Butterfield & Son Limited in Bermuda for an after-tax
gain of $22 million. This transaction is consistent with CIBC Wealth
Management’s strategy of focusing on its North American client base
and growing its Caribbean and Asian operations.
– As at the end of June, CIBC Mutual Funds ranked second among the big
six banks in year-to-date net sales, and moved up to third among all
Canadian mutual fund companies. As at June 30, 2001, CIBC continues to
rank first in index fund net sales for fiscal 2001.
– Since its conversion to a multi-manager approach in May 2001, Personal
Portfolio Services (PPS), Canada’s leading discretionary investment
management program, achieved net sales of $53 million. Total assets
under management are $6.0 billion.
– CIBC Wood Gundy, CIBC’s Canadian full-service brokerage operation,
continues to focus on growing fee-based asset management programs.
Specifically, Investment Advisory Service increased net assets by $217
million, representing 155% growth, year-to-date.
Net income was $229 million, down $157 million from the third quarter of
2000 which had more robust market conditions and higher merchant banking
revenue. Net income was up $34 million from the prior quarter due to higher
revenue from origination activities. Net income for the nine months ended July
31, 2001 was $695 million, down $284 million from the same period in 2000.
Revenue was $1,066 million, down $233 million from the third quarter of
2000 and up $67 million from the prior quarter. Revenue for the nine months
ended July 31, 2001 was $3,241 million, down $412 million from the same period
Revenue details are as follows:
– Capital markets operates trading, sales and research businesses
serving institutional, corporate and government clients across North
America and around the world. Revenue was $365 million in the quarter,
up $19 million from the third quarter of 2000 and up $14 million from
the prior quarter. The increase was due primarily to the strong
performance of the fixed income business.
– Investment banking and credit products provides advisory services and
underwriting of debt, credit and equity for corporate and government
clients across North America and around the world. Revenue was $480
million in the quarter, up $82 million from the third quarter of 2000
due to increased leveraged finance activity, primarily in Europe.
Revenue was up $82 million from the prior quarter due to improved
leveraged finance conditions, combined with increased U.S. investment
– Merchant banking makes investments to create, grow and recapitalize
companies across a variety of industries. Revenue was $103 million in
the quarter, down $309 million from the third quarter of 2000 which
benefited from higher merchant banking divestiture gains. Revenue was
down $40 million from the prior quarter due to lower realized gains
net of asset write-downs.
– Commercial banking originates financial solutions centred around
credit products for medium-sized businesses in Canada. Revenue was
$125 million in the quarter, comparable with both the third quarter of
2000 and the previous quarter.
– Other includes the allocation of a portion of treasury revenue, net of
unallocated funding charges; CEF Capital, an affiliated Asian merchant
bank holding company; and other revenue not directly attributed to the
main businesses listed above. Revenue was $(7) million in the quarter,
down $29 million from the third quarter of 2000 due to higher treasury
related funding charges. Revenue was comparable to the prior quarter.
Non-interest expenses were $685 million, down $24 million from the third
quarter of 2000 as a result of lower revenue-based compensation expenses. Non-
interest expenses were up $59 million from the prior quarter primarily due to
variable compensation associated with higher revenue. Non-interest expenses
for the nine months ended July 31, 2001 were $2,025 million, down $101 million
from the same period in 2000.
The regular workforce headcount totaled 2,989 at quarter end, up 22 from
the prior quarter.
Developments in the quarter included:
– CIBC World Markets launched a new webcast facility, CIBC eTV, a
proprietary web-based online television station providing clients with
access to current research.
– CIBC World Markets held an official ground breaking ceremony at the
commencement of construction of its new U.S. headquarters to be
located at 300 Madison Avenue in New York.
– CIBC World Markets successfully initiated an equity arbitrage business
in Ireland. This business is expected to play an important role in our
strategy to expand into European equity markets.
– Divestiture of non-strategic facilities continued with the sale of
$316 million of performing loans, resulting in pre-tax charges of $23
million. CIBC World Markets, together with Treasury and Balance Sheet
Management will continue to explore opportunities in this area.
– CIBC World Markets participated in a number of significant
transactions in the quarter:
– Sole underwriter and lead arranger of a US$2.0 billion credit
facility to finance George Weston Limited’s acquisition of
Bestfoods Baking Company.
– Joint-lead arranger, joint bookrunner, documentation agent, and
security agent on a senior debt facility, as well as joint arranger
and administrative agent on a bridge facility for Apax Partners
& Co., and Hicks, Muse, Tate & Furst Inc.’s acquisition of Yell
Directories from British Telecommunications plc for pnds stlg 2.14
– Financial advisor, lead arranger and underwriter on Nomura
Principal Finance Group’s acquisition of Le Meridien from Compass
Group plc for pnds stlg 1.9 billion.
– Co-lead manager and underwriter in a commercial real estate
securitization offering of US$962 million.
Orsus Solutions, a leading provider of technology that aggregates,
integrates and delivers information to web and wireless users, announced
that Bank Leumi, one of Israel’s oldest and largest banks, is using Orsus
Uno to power Israel’s first wireless financial services portal. Using Orsus
Uno, a comprehensive platform for rapidly creating and deploying web and
wireless applications, Bank Leumi is able to provide its mobile customers
with access to 22 types of financial and personal banking services,
including comprehensive information for checking, savings and foreign
currency accounts, in both Hebrew and English. Additionally, mobile
customers are able to access credit card and loan information, obtain
foreign exchange rates, receive alerts and more.
Orsus’ experience in the financial services sector brought to Bank
Leumi a domain expertise and comprehensive technology that allowed the bank
to quickly implement a wireless financial portal, benefiting its mobile and
wireless customers. Orsus’ easy-to-use graphical design interface enabled
Bank Leumi’s internal team to develop personalized applications for
customer deployment after one week of Orsus’ technical training.
“Bank Leumi is a highly valued customer. We are proud that within a
short time we succeeded in providing them with the ability to adapt to the
mobile world quickly,” said Aryeh Finegold, founder and chairman of Orsus
Solutions. “The banking sector has unique demands, and Orsus is confident
in its ability to offer quick solutions to meet these demands.”
Available to Orange and GoNext Customers
Bank Leumi wireless services are available to customers of Orange
Israel and GoNext. Prior to the launch of the newly created banking portal,
Bank Leumi customers were limited to wireless access via Orange phones
utilizing SMS technology. Now, customers of Orange and Israeli wireless
operator GoNext can benefit from wireless banking services, by simply
accessing the bank’s new wireless portal on the mobile Internet.
The Orsus Uno platform includes Uno Studio, an environment for
developing complete web and wireless applications, and Uno Server, a
scalable, standards-based deployment server for Java and Windows.
Professional and novice developers use Uno Studio’s graphical process and
interface editors to prototype applications in hours and perfect them in
days. Depending upon complexity, the accelerated deployment time assists
organizations in meeting their information needs without placing additional
strain on IT resources.
Uno Server is built on a scalable Java architecture that is based on
platform, data-access, web and wireless standards, and runs on Windows
2000, HP, Sun and Linux servers. In addition, Orsus Server runs on J2EE
appservers based on WebLogic/BEA, iPlanet, HP Bluestone, jBoss and JRun.
Orsus is a leading provider of business solutions that transform
enterprise and web information into task-based, personalized applications
for any device or platform. Orsus products empower businesses to
consolidate resources across an enterprise, build intuitive applications
and portals for wireless and web delivery, integrate data and services from
different web sites, and provide employees, customers and partners with
mobile access to corporate systems. Orsus Solutions is headquartered in
Silicon Valley, has a European subsidiary in London, a full-service
Asia-Pacific subsidiary in Singapore, and an R&D center in Israel. For more
information, call 650-988-9100, go to www.orsus.com, or send email to [email protected]
About Bank Leumi
Bank Leumi, one of Israel’s oldest banks, with over 90 years
experience and branches worldwide, offers its customers a full range of
banking products, securities, insurance, asset management and other
financial services. Bank Leumi worked with Orsus to build Israel’s first
wireless financial portal, bringing robust financial information services
and personal banking to the bank’s mobile customer base.
Infopia Inc., developers of Marketplace Manager, the first intelligent online product sales and exposure service, announced the addition of automated payment processing when merchants receive orders from the network of online auctions and marketplaces where Marketplace Manager places product listings.
Infopia has launched this new feature in conjunction with several partnerships with major players in the payment gateway and merchant account industries including Cardservice International, Authorize.Net, ProPay, iBill and SureFire Commerce. Integration with additional providers will be conducted on a regular ongoing basis.
Until now, Marketplace Manager, after creating, listing and managing product listings, would collect orders from sales and winning bids from hundreds of different shopping sites. The service would then allow the merchant to use any merchant account or service provider to then manually process transactions.
While merchants will still have the manual option, the added functionality enable merchants to select the orders to process via their account with an integrated provider and, at the push of a button, process the transactions automatically.
“We continue to be very responsive to the requests of our customers for added features and functionality,” said Bjorn Espenes, chief executive officer of Infopia. “Our goal is to bring merchants, marketplaces and enabling technology providers together with a full service solution to respond to a growing demand by businesses to participate in third party marketplaces.”
About Infopia Inc.
Infopia Inc. is a privately held, high-growth Internet company and developer of Marketplace Manager(TM), an intelligent online product sales and exposure engine. Marketplace Manager uses patent-pending technology and Artificial Intelligence to penetrate existing online marketplaces for product exposure, returning transactions and marketplace feedback on a product-specific level.
Infopia’s unique service drastically reduces the cost and challenges merchants experience with customer acquisition by creating, strategically placing, and managing product listings in a growing network of high-traffic marketplaces such as auctions, classifieds, b2b exchanges, malls and comparison shopping sites where buyers routinely turn to shop.
The net result for merchants is instant, massive exposure resulting in more product sales, increased revenues, lowered customer acquisitions costs and the development of previously untapped marketing and sales channels.
The Infopia system also provides an easy-to-use management interface showcasing extensive, product-specific market response reports to assist merchants in their inventory and pricing decisions. Founded in 1999, Infopia has already placed product listings valued in excess of $2 billion. For more information call 801/990-4700 or visit .
AmeriNet, Inc. and eUniverse, the leading interactive entertainment network, today announced that AmeriNet’s Debit-it technology will provide electronic online check processing for eUniverse.
Debit-it will first be deployed on eUniverse’s dating site, Cupid Junction. Debit-it will offer visitors secure online checking account debit transactions that are as easy as paying with a credit card.
Features of Debit-it include a real-time user interface that mirrors a credit card transaction, batch processing of checks, the AmeriNet Parsing engine that eliminates 8-10 percent of errors up front, built-in fraud screening, processing of both Web and phone orders, paperless transactions, custom reporting, and ease of integration through a transaction server that integrates in less than two hours.
Debit-it has rapidly become an industry standard for online transactions. In the past month, the Electronic Retailing Association, the national retail trade association with more than 100,000 members who sell goods and services online, and NACHA — The Electronic Payments Association, have reached agreements with AmeriNet for deploying Debit-it.
“Many Internet users don’t have credit cards or, for many reasons, don’t want to use their credit cards on-line,” said Pat Dane, Executive VP of Sales and Marketing for AmeriNet. “Our technology will give them a secure, easy alternative to using credit cards and will help companies, such as eUniverse, save money on transactional and administrative costs.”
“We are happy to offer our visitors safe alternatives to credit card online order processing, and we think Debit-it will increase customer security and comfort with the eUniverse network,” said Brad Greenspan, Chairman and CEO, eUniverse. “We also appreciate the lower cost per transaction and easy reporting method used by Debit-it.”
About AmeriNet, Inc.
AmeriNet, Inc., founded in 1994, has an established history of providing checking account debit transactions over the phone and the Internet. It’s the leader in the DRTV industry for paperless debit transactions. AmeriNet’s proprietary system, called Debit-it, makes purchases as easy as a credit card payment, which gives customers without credit cards or those concerned with security a convenient an easy-to-use option that is very similar to credit card transactions. Debit-it has processed over 5 million transactions over the Internet the past two years. For merchants, Debit-it is cost-effective with credit card transaction fees and helps add and retain customers. AmeriNet is headquartered in Portland, Ore., and has its network operations in Clearwater, Florida
eUniverse, Inc. ([www.euniverse.com]) is the Internet’s leading interactive entertainment network. Focusing on diversion-oriented content, eUniverse is consistently ranked as a top 10 weekly Internet property according to Nielsen//NetRatings. The eUniverse network includes Flowgo ([www.flowgo.com]), the largest entertainment Web site according to Nielsen//NetRatings; dating site Cupid Junction ([www.cupidjunction.com]); leading community site Just Say Wow ([www.justsaywow.com]); and one of the largest e-mail newsletter networks, delivering entertaining and informative content to more than 50 million subscribers, including the recently acquired InfoBeat and IntelligentX family of online publications.
Gemstar-TV Guide International Inc., the nation’s premier provider of Interactive Program Guide services, announced the addition of three major national advertisers to its IPG roster. These include MasterCard International, The Clorox Co. and HotJobs.
Gemstar-TV Guide’s IPG services include the TV Guide Interactive system — the on-screen digital cable guide provided to multichannel video programming distributors, and the GUIDE Plus+ system — the on-screen guide built directly into television sets and VCRs. Gemstar-TV Guide’s IPGs currently reach more than 13 million U.S. television households.
“Our overall media sales strategy is to make it easy for clients to do advertising deals across all of Gemstar-TV Guide’s media — TV Guide magazine, TV Guide Channel, tvguide.com and the IPGs. We’ve stated that the road to success in respect to IPG advertising is to solidify a multitude of deals. With the addition of these three major brands, we’re gaining considerable momentum and adding the support of some very savvy marketers,” said Jeffrey Mahl, president of media sales at Gemstar-TV Guide.
Gemstar-TV Guide’s IPGs offer an enhanced television viewing experience that combines comprehensive program listings information with easy-to-use functionality for navigating the 100-plus-channel digital TV universe.
Gemstar-TV Guide’s IPGs provide comprehensive program listings information and descriptions for the broadcast and cable channels received in the home, featuring plot summaries, airtime, ratings, length and other important details to assist in making viewing choices. The listings can be sorted by category, time or channel, and programs can be selected for viewing at the touch of a button or scheduled for future enjoyment.
For advertisers, Gemstar-TV Guide’s IPG products provide a cost- effective means of reaching more than 13 million television households with strong demographics, comprising digital cable subscribers and high-end television purchasers. In an increasingly fragmented television programming space, the Gemstar-TV Guide IPGs occupy the focal point for viewers seeking suggestions and guidance, thereby permitting advertisers to send messages to interested viewers in a receptive mood.
MasterCard International, a leader in innovation in the payments industry, has signed on as the first long-term credit card category advertiser on Gemstar-TV Guide’s IPGs.
“We’re very excited to partner with Gemstar-TV Guide, the industry leader and the only interactive television guide to have reached a critical mass of subscribers,” said Caryl Hahn, vice president, media, MasterCard International. “We believe that our positioning as the payment brand of choice for millions of subscribers creates a strong presence for MasterCard in the emerging T-commerce environment.”
Clorox, a longtime advertiser on the TV Guide Channel, will add the IPG to its TV Guide multimedia ad buy.
Also joining the IPG advertiser collective is HotJobs. Playing on its theory that the anxiety levels of disaffected workers heighten on Sunday night, the online job search company will use the Gemstar-TV Guide IPGs to reach audiences with its messages — before Monday.
According to Mahl: “HotJobs has an innovative outlook on how the television medium can be translated beyond broadcast ads to reach consumers. It also helped HotJobs that our research shows that Interactive Program Guide users in either the digital cable or consumer electronics space are 54 percent more likely than regular TV viewers to have Internet access.” (a)
About Gemstar-TV Guide International Inc.
Gemstar-TV Guide International Inc. is a leading global technology and media company focused on consumer entertainment. The company has three major business sectors: the Technology and Licensing Sector, which is responsible for developing, licensing and protecting the company’s intellectual property and technology — the company’s technology includes the VCR Plus+(R) system, interactive program guide (“IPG”) products and services marketed under the GUIDE Plus+(R) and TV Guide Interactive(SM) brands and the electronic book (“Gemstar eBook(TM)”); the Interactive Platform Sector, which derives recurring income from advertising, interactive services, content sales and e-commerce on the company’s proprietary platforms, including IPG, eBook and tvguide.com; and the Media and Services Sector, which operates the TV Guide(R) magazines, TV Guide Channel(SM), TVG Network(SM) and other television media properties, provides programming and data services, and operates a media sales group that services all of the company’s media properties.
The IPG products are integrated into various devices, including televisions, VCRs and set-top boxes (cable, satellite, telco, Internet) and can display a multiday television program guide on the television screen from which the consumer can view, select, tune to or record programs. The Gemstar eBook is a reading device that can store tens of thousands of pages, and permits a user to purchase and receive instant delivery of any book, magazine or newspaper over a standard telephone line.
The company’s media properties are used by 100 million U.S. homes, and its products and services are available in more than 60 countries worldwide.
The company’s services, technology and intellectual property are licensed to major technology, media and communication companies in the consumer electronics, Internet, personal computer, satellite, cable television and telco industries. Licensees and customers include Adelphia, AOL Time Warner, AT&T, Cablevision, Charter, Comcast, Cox, Matsushita, Microsoft, Mitsubishi, Motorola, Philips, Shaw, Sony, Thomson Multimedia, Zenith and others. The company has more than 170 issued U.S. patents in the general area of audio-visual technologies with more than 4,200 claims and more than 190 issued foreign patents, continues to actively pursue a worldwide intellectual property program, and currently has roughly 300 U.S. and 800 foreign patent applications pending.
For more information, access the corporate Web site at [www.gemstar-tvguideinternational.com].
MasterCard International has a comprehensive portfolio of well- known, widely accepted payment brands, including MasterCard, Cirrus and Maestro. More than 1.7 billion MasterCard, Cirrus and Maestro logos are present on credit, charge and debit cards in circulation today. An association composed of more than 20,000 member financial institutions, MasterCard serves consumers and businesses, both large and small, in 210 countries and territories. MasterCard is a leader in quality and innovation, offering a wide range of payment solutions in the virtual and traditional worlds. MasterCard’s award-winning Priceless advertising campaign is now seen in 80 countries and in more than 36 languages, giving the MasterCard brand a truly global reach and scope. With more than 21 million acceptance locations, no card is accepted in more places and by more merchants than the MasterCard Card. In 2000, gross dollar volume exceeded US$856 billion. MasterCard can be reached through its World Wide Web site at .
About The Clorox Co.
The Clorox Co., with 11,000 employees worldwide, is a $3.9 billion multinational manufacturer and marketer of household products and products for institutional markets.
HotJobs.com is a leading Internet recruiting solutions company that develops and provides companies with innovative recruiting solutions and services. HotJobs.com (), the company’s popular consumer job board, provides a direct exchange of information between opportunity seekers and employers, and includes features such as HOTBLOCK, which enables job seekers to block specific companies from searching their resumes. In addition, HotJobs also offers an Agency Desktop, which provides a direct, business-to- business exchange between corporate hiring managers and staffing agencies. More than 10,600 companies subscribe to HotJobs’ online employment exchanges. HotJobs also provides employers with progressive recruiting solutions such as its Resumix(R) and Softshoe(R) hiring management software, Career Expos, its HotReach affiliate program, and Diversity Marketing Solutions.
The Electronic Retailing Association and AmeriNet have teamed to provide check processing services for ERA members who market goods and services on-line. The firms have agreed to launch an electronic transaction system called ‘Debit-it’ designed exclusively for ERA membership. Features of ‘Debit-it’ include a user interface that mirrors a real time credit card transaction; batch processing of checks; an AmeriNet Parsing engine that eliminates 8 – 10% of errors up front; fraud screening built into the check processing system, processing of web and phone orders; paperless transactions; custom reporting, and ease of integration through a transaction server that integrates in less than two hours.
Credit cardholders or AAdvantage members can now access the ‘OneStop Self-Service’ check-in at Houston’s airport. Passengers with electronic tickets traveling domestically are now able to check in, select a seat and obtain a boarding pass with the swipe of a credit card or an AADVANTAGE ‘EXECUTIVE PLATINUM’,’PLATINUM’ or ‘GOLD’ card. Passengers with bags also have the option of checking their own luggage through the self-service kiosks. American also offers a telephone check-in service whereby AADVANTAGE members can now check-in for domestic itineraries within three hours before departure. The ‘OneStop Self-Service’ check-in is currently available in Albuquerque, Atlanta, Austin, Chicago, Dallas, Detroit, Minneapolis/St. Paul, Nashville, Raleigh/Durham, San Antonio, San Jose, and Seattle. American says it will expand the program to more than 30 airports within a few months.
Five additional firms have joined the Fargo Technology Alliance, a global technology group which promotes effective, advanced smart card solutions, Fargo Electronics, Inc. announced Thursday. Fargo is the world’s leader in innovative technologies for desktop plastic card personalization systems.
“The Fargo Technology Alliance unites smart card solutions with Fargo’s international and domestic network of distribution partners. With 17 Alliance members — the very best smart and proximity card application software developers and manufacturers — now working together with our global distribution system, Fargo is able to provide a wider range of complete solutions for end users. This generates sales for all companies involved, and builds Fargo’s competitive advantage,” said Gary R. Holland, President and CEO of Fargo.
“The use of advanced technology, such as smart and proximity cards, is creating new opportunities for distributed card personalization systems,” Holland noted. “Some marketing studies suggest that within the next five years, more than 50 million U.S. residents will carry chip-based smart ID cards. The U.S. Department of Defense Common Access Card project, which uses over 1,500 Fargo printers, is a prime example of the implementation of this technology.”
Alliance members can participate in special Technology Showcase events with Fargo’s Distribution Partners in conjunction with industry conferences and trade shows. The second Fargo Technology Showcase will take place on Sunday, September 30, in San Antonio, Texas, one day prior to the American Society of Industrial Security (ASIS) 47th Annual Seminar and Exhibit October 1-4. Keynote speaker will be Joseph Grillo, president and CEO of HID Corporation, Irvine, Calif.
The five newest members are: CASI-RUSCO, Boca Raton, Fla.; Leapfrog Smart Products, Inc. (OTCBB:FROG.OB), Maitland, Fla.; Lexington Technology, Inc., Huntington Beach, Calif.; Synercard Corp., Quebec, Canada; and Unicard Systems, Sydney, Australia.
CASI-RUSCO, an Interlogix (Nasdaq:ILXI) company, is a world leader in enterprise security management systems. CASI-RUSCO systems provide electronic access control, CCTV management and alarm monitoring in solutions that meet the unique needs of global, multi-site corporations down to the needs of small businesses with cost effective, easy-to-use systems.
Leapfrog has extensive experience and off-the-shelf, comprehensive, solutions in the healthcare, access control and campus (both corporate and university) sectors. Leapfrog’s healthcare division, Conduit, develops smart card-based solutions that assist the healthcare industry in becoming more efficient and cost-effective by reducing fraud, streamlining administrative procedures, and increasing the quality of healthcare services provided to the patients.
Lexington Technology is a developer of ID card personalization software and related applications. Lexington provides business solutions that incorporate its data-bridging techniques, and that simplify complex business processes, allowing users to issue, track and manage the identity of people and assets. Lexington Technology provides an open ID card personalization platform, which allows for third party application encoding of smart cards, as well as direct configuration and encoding from within its products. For developers of applications needing card personalization capability, Lexington provides development tools that allow for integration of these functions into third party applications.
Synercard Corporation was formed in 1997 to exploit the emerging market opportunities in the areas of Internet and Intranet-enabled smart card personalization and issuance for advanced photo ID cards. Today, Synercard designs, develops and, through an international network of value-added resellers, markets software products, which simplify and streamline the process of managing and issuing advanced photo ID cards and smart cards for organizations of any size anywhere.
Unicard provides complete smart card solution for university, college and campus environments. The solution is used for many applications within a campus environment. Using just a single smart card, the solution incorporates a growing number of applications including, photo ID, monetary and loyalty purses, access control, student library card and membership applications. The range of products include student ID card production interfaced into university student/staff and library databases, smart card readers for PC’s, readers for doors and for vending copies, cash to card vending machines and touch screen point of sale software. It also includes a complete Web based reporting and management system.
“In just a few short years, Fargo card personalization technology has expanded from relatively simple systems for door access to much more complex personalization systems for the education, loyalty, healthcare, e-commerce and mass transit markets, just to name a few,” Holland said. “At the same time, card encoding is evolving from relatively simple bar code and magnetic stripe cards to complex schemes with smart cards, proximity cards, and hybrid cards, which use multiple technologies on a single card.”
“The primary goal of the Fargo Technology Alliance is to increase the sale of smart card products, card personalization systems and services,” according to Joseph Schuler, Fargo’s Director – Business Development. “The program is pulling together a wide range of expertise and products, providing information on technology and markets, and creating a network of relationships to promote successful business-to-business partnering. Further, the Alliance has quickly become a valuable resource that sets our combined solutions apart from everyone else.”
“The Alliance is open to smart card software developers and manufacturers whose products or services complement Fargo products. Fargo facilitates a direct sales relationship between its Distribution Partners and Alliance Members,” Schuler said.
The 12 other members of the Alliance are: Bull CP8; CardLogix; CardSmart Technologies; Gemplus (Euronext:Sicovam 5768 and Nasdaq:GEMP); IDenticard Systems; ImageWare (AMEX:IW); Intraproc GmbH; NFive Software; Schlumberger (NYSE:SLB); SmartDynamics, LLC; Supercom Smart Cards Inc. (Easdaq:SPRC); and UbiQ Inc.
For more information on Fargo Technology Alliance members, see their web sites: Bull CP8 at www.cp8.bull.com; CASI-RUSCO at www.casi-rusco.com; CardLogix at www.cardlogix.com; CardSmart Technologies at www.YourCardSolution.com; Gemplus at www.gemplus.com; IDenticard Systems at: www.identicard.com; ImageWare Systems Inc. at www.iwsinc.com; Intraproc at www.intraproc.com; Leapfrog at www.leapfrog-smart.com, or www.conduithealthcare.com; Lexington at www.lexingtontech.com; Nfive Software at www.nfive.com; Schlumberger at www.slb.com; SmartDynamics at www.smartdynamics.com; SuperCom Smart Cards at www.supercomsmart.com; Synercard at www.synercard.com; and UbiQ at www.ubiqinc.com; and Universal at [www.unicard.com.au]
Fargo Electronics, Inc. (Nasdaq:FRGO) is the world’s leader in innovative technologies for desktop plastic card personalization systems. Based in Eden Prairie, Minnesota, Fargo printing systems create personalized plastic identification cards complete with digital images and text, lamination, and electronically encoded information.
Personalized identification cards provide physical, information and transaction security for a wide variety of applications including retail stores, e-commerce, government installations, schools, sports and recreation facilities, clubs and associations, and correctional facilities. More than 50,000 Fargo systems are currently installed throughout the U.S. and in over 100 other countries. For more information, visit Fargo’s website at [www.fargo.com].
Businesses and government agencies were given a compass, as Visa U.S.A. announced the launch of the Visa SupplierLocator.
This new Internet tool will assist Visa commercial customers in identifying suppliers that accept Visa commercial payment products, along with providing the ability to search for suppliers identified by distinct criteria such as minority ownership information, merchant location, and business classification.
An easy-to-use Web resource, the Visa SupplierLocator enables Visa commercial cardholders to conveniently identify new suppliers that accept Visa. Additionally, it is equipped with functionality to provide an onscreen map of each selected U.S. merchant location. The Visa SupplierLocator can also benefit suppliers by giving them an opportunity to gain visibility and potentially grow their customer base.
“Similar to a favorite search engine, the Visa SupplierLocator will become an invaluable resource,” said Michael L. Dreyer, Senior Vice President, Commercial Solutions, Visa U.S.A. “This tool is another example of Visa’s continued efforts to add tremendous value at every stage of the procurement and payment cycle.”
The information available on the Visa SupplierLocator comes from the Visa Merchant Profile Database (VMPD), a repository of high-integrity supplier information gathered from sources including transaction detail and public information. This data enables Visa commercial cardholders to make more informed purchasing decisions and to meet federal and state regulatory requirements.
The Visa SupplierLocator is the best place to start when looking for a supplier, greatly simplifying a once daunting task. Although inclusion in the SupplierLocator carries no endorsement by Visa of a supplier’s products or services, this data is an invaluable resource to business. This tool is another example of Visa’s commitment to remain the best way to pay and be paid in the commercial marketplace.
In addition to the Visa SupplierLocator, Visa commercial cardholders benefit from a wide variety of products and services that help organizations build flexible solutions that promote cost efficiency and financial control. Visa’s enhanced reporting and supplier data helps make businesses financially smarter.
The Visa SupplierLocator is available on the Internet, and can be accessed at [www.visa.com] under “Business Highlights.”
Visa is the world’s leading payment brand and largest consumer payment system, enabling banks to provide their consumer and merchant customers with the best way to pay and be paid. More than 14,000 U.S. financial institutions rely on Visa’s processing system, VisaNet, to facilitate over $810 billion in annual transaction volume – including more than half of all Internet payments – with virtually 100 percent reliability. U.S. consumers carry more than 353 million Visa-branded smart, credit, commercial, stored value and check cards, accepted at approximately 22 million locations worldwide. Visa has long led the industry in developing payment security standards, and has been named the most trusted payment brand online. Visa’s people, partnerships, brand and payment technology are helping to create universal commerce – the ability to safely conduct transactions anytime, anywhere and by any device. Please visit [www.visa.com] for additional information.