FIME and Thales are making a joint offering for the host card emulation (HCE) mobile services market. The partners have combined expertise to provide near field communication (NFC) service providers and issuing banks with a complete three-phase portfolio of functional and security consultancy and testing services.
Bangor Savings Bank has implemented the Datacard “CardWizard” secure ID and card personalization solutions software for instant-issue MasterCard debit cards. This lets new bank customers become cardholders within hours after leaving the branch with their new debit card. Bangor Savings Bank is working with Datacard Group on a three-phase implementation that will consist of rolling out the “CardWizard” software to all 55 of its branch locations throughout Maine by mid-year 2011. Providing the personalized MasterCard debit cards in a matter of minutes to its customers, Bangor Savings Bank is utilizing the Datacard “FCP 20/20” card printer for brilliant, high-definition, full-color retransfer printing, approved by both Mastercard and Visa.
Contactless provider Kontiki held its 33rd conference to discuss the
goals and contents of initiative funded by the German Federal Ministry
of Transport, Building and Urban Affairs (BMVBS) for the implementation
of eTicketing in Germany, perspectives in developing distribution
channels for local public transport
in presentations, as well as in special and plenary discussions. These
topics were also integrated into the assigned tasks of the Kontiki
working groups Migration, Interoperability, and Mobility. The conference
included a review of the modernisation of the vehicle fleet that
included the development of a modern fare and distribution system as
well as the BOB ticket (Comfortable without Cash). A project titled ”
d(((eti,” the focus of which is the distribution of electronic tickets
via the Internet, was introduced. ” D(((eti” is developing a whole
distribution system, from route plans to fare information to ticket
purchases. The goal is to realise the system as an open source system,
which will then carry no licensing costs.
Visa is launching four new mobile payments programs. Two commercial mobile payments programs are being started in Brazil and Korea, along with two mobile offers and transaction notification pilots in the USA. Visa has more than a dozen pilot and commercial programs using its mobile platform underway worldwide. Visa recently announced a partnership with Chase Bank for a pilot program to deliver personalized mobile offers to select consumers in Phoenix, AZ. PNC Bank, SunTrust Bank, U.S. Bank, Wachovia, and Wells Fargo along with RBC, TD Bank, and Vancity in Canada, are testing a transactions notification program that is able to send near real-time information to cardholders. This week, Visa announced the availability of remote mobile payments in Brazil by Banco do Brasil, the first program of its kind in Latin America. As a world first and in partnership with T-Money provider Korea Smart Card Company, card issuer Shinhan Bank and Korea Telecom Freetel, Visa has made it possible for commuters to use their Visa account to top up their T-Money balances automatically on the phone’s SIM card when it falls below a certain level.
Visa is launching four new mobile payments programs. Two commercial mobile payments programs are being started in Brazil and Korea, along with two mobile offers and transaction notification pilots in the USA. Visa has more than a dozen pilot and commercial programs using its mobile platform underway worldwide. Visa recently announced a partnership with Chase Bank for a pilot program to deliver personalized mobile offers to select consumers in Phoenix, AZ. PNC Bank, SunTrust Bank, U.S. Bank, Wachovia, and Wells Fargo along with RBC, TD Bank, and Vancity in Canada, are testing a transactions notification program that is able to send near real-time information to cardholders. This week, Visa announced the availability of remote mobile payments in Brazil by Banco do Brasil, the first program of its kind in Latin America. As a world first and in partnership with T-Money provider Korea Smart Card Company, card issuer Shinhan Bank and Korea Telecom Freetel, Visa has made it possible for commuters to use their Visa account to top up their T-Money balances automatically on the phoneâs SIM card when it falls below a certain level.
Alaric International will be providing the Barbados Public Workers’
Co-operative Credit Union Ltd (BPWCCUL) with its
debit card solution. In doing so, Alaric will be providing EFT
authorization and switching for the implementation of the national
CarIFS (Caribbean Integrated Financial Services) debit solution, which
has just recently made available debit switching to credit unions.
Authentic will link the Union to the CarIFS Network while Prism Services,
the network manager, is fully endorsing the development.
BB&T has teamed with ClairMail of Novato, CA and mFoundry of Sausalito, CA to offer mobile banking services . Under the terms of the partnership, the companies will co-market and sell an enhanced, combined solution which integrates the ClairMail System’s mobile banking and payments platform and applications with mFoundry’s Spotlight client-based application. BB&T’s three-phase rollout of the new service is set to begin next month and is expected to be completed in the first quarter when a full menu of mobile banking options will be available to BB&T clients. The services include two-way mobile messaging, mobile Web access and mobile banking applications. BB&T holds $127.6 billion in assets and more than 1,500 financial centers in 11 states. mFoundry is an award-winning mobile application platform provider. ClairMail optimizes any mobile phone for two-way customer interaction.
Duncan-based Island Savings Credit Union has completed its conversion to Fincentric’s “i-Wealthview Banking.” The new software provides Island Savings with core banking capabilities, integrated delivery channels and real-time, online transaction processing. “i-Wealthview Banking” provides a complete front-to-back office banking solution that supports its many delivery channels such as branch, ATM, POS, IVR and Internet. Based in British Columbia, Island Savings is one of the ten largest credit unions in BC and is the largest Vancouver Island-based credit union, serving over 30,000 members and managing assets of over CN$550 million.
Diebold said Tuesday it has finalized an agreement with Barnes & Noble College Bookstores to place ATMs at various college campus bookstores across the country. The three-phase project consists of seven initial deployments, followed by another 90 installations in the fall and concluding with more than 100 additional sites by year-end 2001. Designed for retail outlets with more than 500 monthly transactions, Diebold’s ‘Placement Program’ allows merchants to provide an ATM owned and operated by Diebold in their store at no cost. Diebold provides retailers with a portion of the transaction revenue, a choice of self-service product and full turnkey services, such as transaction processing, vault cash, cash replenishment, service and monitoring, and unique marketing tools, like on-screen advertising, and dispensing phone cards and coupons. Diebold currently has an agreement in place for ATM deployments at selected Wal-Mart and Uni-Marts locations. (CF Library 6/6/01)
Total System Services has successfully converted 24 million Sears credit card accounts to the ‘TS2’ card-processing system during the week of March 2. These accounts, the second part of a three-phase conversion, represent 36% percent of the Sears private-label card portfolio. Since completing the conversion, TSYS now processes 31 million Sears accounts. TSYS will convert the final phase in the second quarter of 1999, thus completing its largest conversion ever, a total of 65 million accounts.
CheckFree Holdings Corporation announced Wednesday quarterly revenues of $61.8 million for the third quarter ended March 31, 1998 compared to $50.2 million for the same period in the prior year. For the nine months ended March 31, 1998, the Company reported revenues of $170.4 million, compared to $121.4 million for the same period in the prior year.
Excluding a non-cash charge related to the vesting of warrants issued in connection with the Integrion alliance and a gain on disposition of assets related to the sale of the Item Processing software business, the Company reported net income of $57,000 for the quarter, or zero cents per share, compared to a net loss of $4.8 million, or ten cents per share for the same period in the prior year. Including the non-cash charge related to the Integrion warrants and the gain on disposition of assets, the Company reported a net loss for the quarter of $17.5 million, or 32 cents per share, compared to a net loss of $142.9 million, or $2.83 per share for the same period in the prior year.
For the nine months ended March 31, 1998, excluding the non-cash charge related to the Integrion warrants, a gain on asset dispositions, exclusivity amortization and a charge for purchased in-process research and development, the Company reported a net loss of $4.4 million, or eight cents per share, compared to a net loss of $17.9 million, or 40 cents per share for the same period in the prior year. Including the non-cash Integrion warrant charge, the gain on dispositions, exclusivity amortization and purchased in-process research and development, the Company reported a net loss on a year-to-date basis of $9.5 million, or 17 cents per share, compared to a net loss of $155.9 million, or $3.50 per share for the same period in the prior year.
“I am extremely pleased with the financial results we’ve been able to achieve this quarter,” said Peter J. Kight, chairman and chief executive officer of CheckFree. “We hit our first profitable quarter as a publicly held company right on schedule, and we believe it is just the beginning of the rewards our employees and shareholders can expect as we prepare for the next generation of financial electronic commerce services.” Mr. Kight added, “During the quarter, we completed our fiscal 1999 planning process and expect to achieve revenue of $265 to $270 million, and earnings per share of 32 cents for fiscal year 1999. The 1999 plan assumes the completion of the previously announced software divestiture by June 30, 1998, and revenue growth of 35 percent over fiscal year 1998.”
CheckFree currently has agreements with more than 350 financial institutions to provide banking and electronic billing and payment processing services. At March 31, 1998, with the Integrion alliance, more than 2.4 million home banking and bill payment subscribers were relying on CheckFree for behind-the-scenes processing, an increase of 60 percent over the prior year and an eight percent sequential increase over December 31, 1997.
CheckFree Expands Relationship with Intuit to Become the Exclusive Provider of Bill Presentment and Payment for Quicken Software and Web site Through an 18-month agreement, CheckFree will be the exclusive provider of electronic bill presentment and payment processing for Intuit’s Quicken personal financial management software and Quicken.com Web site. Since December 1997, Quicken 98 for Windows customers have been able to both receive and pay their bills with a click of the mouse, enabled by CheckFree’s behind- the-scenes processing. Later this year, electronic bill presentment will also be incorporated into Quicken.com ([http://www.quicken.com]), a leading personal finance Web site. After receiving and processing billing information from its corporate customers, CheckFree will forward bill summary data to Quicken.com subscribers via the World Wide Web. Customers will log on to the site directly, or be directed there by their bank-branded Quicken 98 software package, and view and pay their bills electronically.
“A year and a half ago, we began our relationship with Intuit with the purchase of their processing business,” said Kight. “This acquisition marked a milestone in CheckFree’s history — making us the leading provider of payment processing to financial institutions. With the recent announcement to be the exclusive provider of electronic bill presentment and payment processing for Quicken, we are now clearly leading the emerging market of bill presentment.”
In March, CheckFree completed the Integrion outsourcing agreement that results in CheckFree processing for the former Visa Interactive business acquired by Integrion. In addition, Integrion continues to migrate banks to its IFS platform while it completes the seamless integration with CheckFree’s processing engine. Currently, NationsBank and Bank One are live with customers on the IFS system. PNC, Michigan National and Washington Mutual are in implementation and will be live later this year, as well as another 4 Integrion banks that have committed to full implementation in 1998. Banks using IFS will be the first to offer their customers fully integrated electronic banking, billing, and payment services developed by CheckFree and Integrion.
Genesis Platform Consolidation
Genesis is a three-phase infrastructure project to maximize operating effectiveness for remittance processing, data center costs and electronic banking and bill payment. Completed ahead of schedule, the newly developed processing engine is in production at high volumes with traffic from numerous sources including NationsBank, Chase and Key Bank.
The second phase of the Genesis project — creating a single, centralized, state-of-the-art data center is nearly complete. Most recently, the Austin data center was moved to the new Atlanta center, moving nearly one million customers 950 miles. By June 30, Columbus will be moved to the new center, completing the data consolidations approximately three months ahead of schedule.
During the quarter the company also completed development of the new online systems for banking and bill payment. Beta testing for these applications will be conducted during the fourth quarter and customers will begin to be migrated to the new platform in the second half of the calendar year.
Highlights of the quarter
* April 20, 1998 — CheckFree sells cash management and wire transfer business units to Fundtech Ltd. For $18.25 million. * April 1,1998 – CheckFree announces plans to divest seven of its software products to enhance the company’s focus on core businesses in electronic commerce products and services. The products include: cash management, wire transfer, leasing, item processing, imaging, mortgage and safe box accounting. * March 24, 1998 – CheckFree sells item processing unit to Houston-based CONIX Systems, Inc. * March 11, 1998 – Integrion and CheckFree sign agreement for processing partnership, whereby CheckFree assumed management of the Herndon, Va.- based company’s operations to handle bill payment fulfillment and customer service to approximately 50 of Integrion’s financial institution customers. * March 4, 1998 – CheckFree launches CheckFree Trade RECON(TM), a Windows-based client/server solution for global cash and securities reconciliation. * February 23, 1998 – CheckFree E-Bill receives 1998 Marketing Award for Excellence (MAX), sponsored by Georgia State University’s College of Business Administration and the Atlanta Business Chronicle. The award honors the outstanding product, service and marketing innovations developed in Georgia during the previous year. * January 29, 1998 – CheckFree and Harris Bank of Chicago form strategic ACH business alliance to process the bank’s 45 million ACH transactions conducted per year. * January 28, 1998 – Home Depot replaces its reconciliation system with CheckFree RECON-Plus for Windows for automating reconciliation for its 609 stores nationwide. * January 13, 1998 – CheckFree and CUNA Mutual Group launch electronic billing and payment program to allow CUNA Mutual’s policyholders to receive and pay their premiums on the Internet via CheckFree E-Bill.
Founded in 1981, CheckFree ([http://www.checkfree.com]) is the leading provider of electronic commerce services, software and related products for more than 2.4 million consumers, 1,000 businesses and 850 financial institutions. CheckFree designs, develops and markets services that enable its customers to make electronic payments and collections, automate paper-based recurring financial transactions and conduct secure transactions on the Internet.
Certain of the Company’s statements in this news release contain forward- looking statements, including the statements regarding projections of future revenues and profitability (4th paragraph), incorporation of CheckFree’s bill presentment technology into quicken.com (6th paragraph), CheckFree’s lead in the emerging market of bill presentment (7th paragraph), implementation of additional Integrion clients (8th paragraph) and expected completion of the Genesis project (10th paragraph). These forward-looking statements involve risks and uncertainties, including without limitation the timely implementation of existing bank processing agreements, the ability of the Company to sell its processing services to additional banks, the acceptance of the Company’s electronic banking and bill payment services by financial institutions, businesses and their customers, the acceptance of the Company’s applications software, services and related products by financial institutions, the impact of competitive services and products, the effect of any future acquisitions or divestitures, and the timely development and acceptance of new electronic commerce services and products, as well as the various risks inherent in the Company’s business and other risks and uncertainties detailed from time to time in the Company’s periodic reports filed with the Securities and Exchange Commission, including Form 10-K for the year ended June 30, 1997. One or more of these factors have affected, and could in the future affect, the Company’s business and financial results in future periods and could cause actual results to differ materially from plans and projections. All forward-looking statements made in this press release are based on information presently available to management, and the Company assumes no obligation to update any forward-looking statements.
CHECKFREE HOLDINGS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Results of Operations
(In thousands, except per share data)
Three Months Ended Nine Months Ended
March 31, March 31,
1998 1997 1998 1997
and servicing $42,147 $30,293 $115,093 $72,658
License fees 8,116 8,181 21,411 21,675
Maintenance fees 6,644 7,300 19,904 15,654
Other 4,843 4,414 13,945 11,368
Total Revenues 61,750 50,188 170,353 121,355
Cost of processing,
servicing and support 34,213 30,357 94,332 75,784
Research and development 9,360 8,556 26,157 22,527
and royalties 6,692 8,868 22,002 21,278
administrative 5,215 3,923 15,748 12,924
and amortization 6,264 6,697 19,380 18,013
In process research
and development — 140,000 719 140,000
stock warrants 32,409 —- 32,409 —
Exclusivity amortization — 2,994 2,963 2,994
Total Expenses 94,153 201,395 213,710 293,520
Net gain on
disposition of assets 3,080 6,250 28,449 6,250
Loss from operations (29,323) (144,957) (14,908) (165,915)
Interest, net 752 250 1,866 1,132
income taxes (28,571) (144,707) (13,042) (164,783)
Income tax benefit (11,031) (1,851) (3,581) (8,876)
Net loss $(17,540) $(142,856) $(9,461) $(155,907)
Basic and diluted
earnings per share:
Net loss per
common share $(0.32) $(2.83) $(0.17) $(3.50)
number of shares 55,281 50,499 54,989 44,511
reconciliation of net
income (loss) and
and income (loss)
income taxes $(28,571) $(144,707) $ (13,042) $(164,783)
amortization — 2,994 2,963 2,994
In process research
and development — 140,000 719 140,000
stock warrants 32,409 — 32,409 —
Net gain on
disposition of assets (3,080) (6,250) (28,449) (6,250)
Adjusted income (loss)
before income taxes 758 (7,963) (5,400) (28,039)
expense (benefit) 701 (3,153) (1,011) (10,178)
Net Income (loss)
amortization, in process
research and development,
charge for stock
warrants and net gain on
disposition of assets $57 $(4,810) $(4,389) $(17,861)
Net income (loss) per
common share, excluding
in process research and
for stock warrants and net
gain on disposition
of assets $0.00 $(0.10) $(0.08) $(0.40)
CHECKFREE HOLDINGS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
March 31, June 30,
Cash, cash equivalents,
and investments $63,973 $36,516
Accounts receivable, net 31,285 44,507
Assets held for sale 25,216 —
Other current assets 9,854 5,200
Total current assets 130,328 86,223
Deferred income taxes 11,105 3,063
Property and equipment, net 45,965 44,027
and intangible assets, net 43,414 83,540
Other 7,066 6,983
Total assets $ 237,878 $223,836
Accounts payable, accrued
liabilities and other $28,469 $40,293
Deferred revenues 25,358 26,498
Total current liabilities 53,827 66,791
– less current portion 6,748 8,401
Net stockholders’ equity 177,303 148,644
and stockholders’ equity $ 237,878 $223,836
Members and customers of the American National Standards Institute can now begin receiving standards electronically by shopping for them at ANSI Online’s new Electronic Standards Store.
The store was created on the World Wide Web to meet the Institute’s needs for a faster and more cost-efficient way for members and customers to purchase and receive standards.
Launched as a pilot program last month, the ESS is open for business and currently carries an inventory of over 50 of the most frequently requested ANSI published standards including standards from committees T1 and X3, and international standards, including ISO 9000 and ISO 14000. More than 2,000 individuals have registered at the site after only one month of operation.
Store Inventory to be Expanded
In the coming weeks, the store will offer 300 more of the most widely sought American National Standards. ANSI is also negotiating with other national and international standards developers to expand the store’s inventory. The opening of the store marks the first phase of a three-phase rollout in 1998.
All the standards in the ANSI Electronic Standards Store are stored in Adobe Acrobat PDF+Text format. This format contains a complete bitmap picture of the original document, but with recognized text hidden behind the picture. This provides the advantages of searchable text while ensuring that the document is identical in appearance to the original.
Documents can be purchased online by a single user with any major credit card (Visa, MasterCard and American Express).
ESS Saves Time, Cuts Shipping Costs
“Although prices will be the same for paper or electronic copies, customers who obtain their standards electronically can save significantly in shipping and handling costs,” said Bob Feghali, ANSI’s vice president of sales and administration and chief information officer. “Customers will also see a tremendous savings in time, as documents can be downloaded immediately upon purchase.” Because of the large file size of some of the documents, ANSI is giving customers up to seven days following purchase to download the documents.
Members and customers can be assured, Feghali said, that all their transactions in the ESS are totally secure. ANSI has worked with leading companies in Internet security to maximize the safety of the transactions that are conducted over the World Wide Web.
In addition, all copyright provisions have been met to maintain the integrity of the standards, a provision that is similar to the publishing and distributing of hard copies. Documents can be searched and printed, but not modified.
ESS-NSSN Link Planned
In phase II, ANSI will establish a link between the NSSN, ANSI’s comprehensive standards retrieval service, and ANSI’s electronic store. The NSSN contains information on more than 250,000 national, international, foreign and regional standards. Users of the NSSN will have the ability to identify the standards they require and have the option of purchasing ANSI published and international standards from the ANSI store (if available), or be directed to the appropriate SDO or its designated reseller, all in one seamless transaction.
In phase III, ESS will be integrated with the ANSI Online catalog to electronically offer more than 50,000 national and international standards in electronic format if available, or hard copy format.
“The ESS will eventually replace the current e-mail system for ordering standards,” Feghali said. “ANSI’s goal is to provide true 24-hour store service that is both cost and time efficient.” In the future, ANSI plans to add value-added services including subscription-based ordering systems for standards and corporate or organizational deposit accounts.
ANSI is a private non-profit organization that administers and coordinates the U.S. voluntary standardization system. Its mission is to enhance U.S. global competitiveness and the American way of life by promoting, facilitating, and safeguarding the integrity of the voluntary standardization system. ANSI is the official U.S. representative to the world’s leading standards bodies; the International Organization for Standardization and, via the U.S. National Committee, the International Electrotechnical Commission.