MBNA, which has been under criticism for the closeness of its Board to management, announced two new directors this morning. The issuer says the appointments will make seven of its nine Board members “independent” and comes one business day before Monday’s shareholders? meeting. Mary Boies, a partner at the law firm of Boies & McInnis, and Laura Unger, former Acting Chairman of the SEC, have been appointed to the MBNA Board , effective June 1st. Ms. Boies is also the founder and CEO of Mary Boies Software, a publisher of educational software. Ms. Unger, was the former Acting Chairman of the SEC between 2001 and 2002. She also served as Commissioner of the SEC between 1997 and 2001. She currently serves as the independent consultant for independent research at JPMorgan. Earlier this month the Teachers Insurance and Annuity Association – College Retirement Equities Fund released a letter to shareholders of MBNA asking them to support its proxy resolution seeking greater board independence. The California Public Employees’ Retirement System also announced this week it would withhold votes from directors at MBNA. (CF Library 4/12/04)Details
Diebold’s “Opteva” bulk note acceptor module is being supported by S2 Systems’ “OpeN/2” platform. S2 Systems’ OpeN/2 platform provides the infrastructure framework for enterprise payments to help transform the customer’s multi-channel experience by leveraging the next generation of self-service technologies. S2 Systems, Inc. is a leading global provider of mission-critical enterprise payment and transaction management solutions for the banking, financial services, retail, telecommunications, utilities and travel & hospitality industries. Diebold, Incorporated is a global leader in providing integrated self- service delivery systems, security and services.Details
BellSouth has been selected by Atlanta-based Lynk Systems to provide toll-free long distance services to facilitate dial-in credit card transactions for its customers. Lynk processes transactions initiated by credit and debit cards, checks, and other access cards from merchant point-of-sale terminals, automated teller machines and Web sites. Lynk Systems, Inc. is a proven leader in electronic payment, cash dispensing and e-commerce services. BellSouth Corporation is a Fortune 100 communications company headquartered in Atlanta, Georgia and a parent company of Cingular Wireless, the nation’s second largest wireless voice and data provider.Details
Delinquency among credit card-backed bonds headed south in March, dropping 20 basis points, however charge-offs headed slightly north by 10 basis points. The overall trend for 30-plus delinquencies continues to be relatively stable, and the 60- and 90-plus delinquency buckets continue to move down to more modest levels. According to Standard & Poor’s latest “Credit Card Quality Index,” the March delinquency average was 4.8%, compared to 5.0% in the previous month, and 5.4% one-year ago. Charge-offs hit 7.0% in March, compared to 6.9% in February, and 7.5% one-year ago. Charge-offs in January dipped to the lowest level reported by the index since September 2002. Charge-offs are expected to decline throughout this year as the economy picks up steam and as delinquency improves further.
CREDIT CARD ABS PERFORMANCE
Oct 03 5.2% 6.9%
Nov 03 5.2% 7.0%
Dec 03 5.0% 7.0%
Jan 04 5.1% 6.8%
Feb 04 5.0% 6.9%
Mar 04 4.8% 7.0%
Source: Standard & Poor’s Credit Card Quality Index
Fair Isaac reported that revenues for the first calendar quarter increased 9% and net income jumped 20%. The Company says the soft growth in revenues was due to underperformance in its insurance segment partially offset by standout performances in the Consumer and Software Tools divisions. First quarter revenues were $173.2 million versus $158.6 million reported in the same year ago quarter. Net income for the quarter totaled $30.8 million, compared with net income of $25.6 million in the same quarter last year. Earlier this week, the Company announced it is acquiring London Bridge Software for about $299 million. London Bridge has more than 1,600 clients worldwide and provides a comprehensive portfolio of software and e-Commerce solutions including customer and enterprise management software, banking software, and credit management software. For complete details on Fair Isaac’s first quarter performance visit CardData ([www.carddata.com]). (CF Library 4/27/04)
FAIR ISAAC TRACK RECORD
Revenues Net Income
1Q/03 $158.6 million $25.6 million
2Q/03 $163.0 million $30.0 million
3Q/03 $161.0 million $31.7 million
4Q/03 $169.3 million $28.8 million
1Q/04 $173.2 million $30.8 million
Source: CardData (www.carddata.com)
Smart card specialist, Gemplus, this week reported that payment microprocessor card shipments rose 125% year-on-year, and 11% compared to the previous quarter, driven by the migration from magnetic stripe to EMV cards in Europe and Asia. EMV shipments increased 38% quarter-on-quarter, marking the fifth consecutive quarter showing significant sequential revenue growth. Financial Services revenues for the first quarter were $48.3 million, compared to $43.4 million for the first quarter of 2003. The Financial Service segment produced a gross profit of $10.9 million, a 73% gain over the same period one-year ago. Overall, Gemplus International posted first quarter revenues of $235.7 million, a 27.9% increase over 1Q/03. The Company posted a first quarter profit of 300,000 euros compared to a loss of $33.2 million in the previous quarter, and a loss of $45.3 million one-year ago. During the first quarter, Gemplus deployed 3G cards for the launch of SK Telecom’s 3G network in Korea, which incorporated the “VISA Smart Debit Credit” application by VISA International for the world’s first mobile proximity payment service on a USIM card, called “MONETA.” For complete details on Gemplus’ first quarter performance visit CardData ([www.carddata.com]).
NCR Corporation reported that revenues for the first quarter were up 5% year-on-year to $1.29 billion, and that its net loss for the quarter declined to $5 million, versus a net loss of $27 million in 1Q/03. The Financial Self Service segment generated record first-quarter revenue of $251 million, up 11% from the year-ago period. First-quarter revenue growth included a year-over-year benefit of 7 percentage points from foreign currency fluctuations. Retail Store Automation generated $165 million in 1Q/04 revenue, up 11% from $149 million in the first quarter of 2003. First-quarter year-over-year revenue comparison for Retail Store Automation included a benefit of 5 percentage points from foreign currency fluctuations. NCR says Retail Store Automation reduced its operating loss for the seasonally weak first quarter to $8 million, a $15 million improvement from the prior-year period. Operating results in the first quarter improved due to cost and expense reductions, the favorable impact from foreign currency fluctuations and higher volume. NCR’s Data Warehousing segment reported record first-quarter revenue of $306 million, up 10% from the first quarter of 2003. For complete details on NCR’s first quarter performance visit CardData ([www.carddata.com]).
MBNA Ireland has been ranked as the number one place to work in Europe
according to a survey by Great Places To Work Institute (Europe). MBNA
was recognized from 1,000 companies Europe-wide to take
the top spot. Earlier this year, MBNA was selected as the “Best Company
to Work For in Ireland,” which led to the company going forward for the
European prize. This is only the second year that MBNA Ireland has taken
part in the “Great Places to Work” surveys. MBNA employs more than 29,000
Portland, OR-based TRM today reported net income for the first quarter of $2.5 million compared to a net income of $753,000 for the same period in 2003. Net sales for the quarter grew to $21.0 million, representing an increase of 12.5%. The increase in net sales for the quarter is attributable to ATM unit expansion, higher currency exchange rates for sales by the Company’s foreign subsidiaries, and higher pricing throughout the Company’s ATM and photocopy networks. ATM operations produced net sales of $9.6 million, including $144,000 in ATM machine sales, during the first quarter, representing of 30% over 1Q/03. At the end of the first quarter, the Company’s ATM network consisted of 3,522 revenue-generating machines deployed throughout the UK and USA, which represents an increase of 422 ATM machines when compared to the same date in 2003. The Company had 25,877 revenue-generating photocopiers at quarter-end, a decrease of 2,156 units (or 7.7%) as compared to the same date in 2003, due primarily to elimination of unprofitable locations. For complete details on TRM’s first quarter performance visit CardData ([www.carddata.com]).
MasterCard International has named Javier Perez President of its Latin
America and Caribbean Region, effective May 1. Perez’s current duties as
general manager of MasterCard Europe’s Customer Division will now be
divided up among four executives. John Bushby will head up Northern
Europe, while Gaetano Carboni handles Southern Europe, and, Norbert
Gebhard takes over Central Europe. Additionally, Jeremy Nicholds, as SVP
and commercial director will extend his management of MasterCard’s
strategic customer relationships with Europe’s largest banks to include
brand marketing and new product development for the region. Before
joining MasterCard in 1996, Perez, a native of Spain, held several top
level positions at Banco Bilbao Vizcaya Argentaria.
Musicmatch is launching its “Musicmatch Music Download Cards” at retail outlets nationwide starting in June with the support of Vesta and the AT&T “PrePaid Web Cents Service”. Three different music download cards will be available, including those featuring 10 music tracks for $9.90, 15 music tracks for $14.85 and 20 music tracks for $19.80. Once the card is purchased, tracks can be redeemed from Musicmatch Downloads, one of the most popular digital music stores today. Vesta is the leader in stored value solutions. Musicmatch Inc. is a leader in personalized music software and services, helping people find, manage, enjoy and buy music that best matches their unique tastes.Details
ASK has launched a unique smart card operating system compliant with
ISO7816 and/or ISO14443 A/B standards and “Calypso” enabled. The new
“C.carte” platform can run on various chips whether it be ISO14443 type A
or B chips and is designed for mass transit operators. A customizable
files system offers all features of a true multi-application
implementation, scalable to the clients requirements and business case.
Directories and files can be created after card issuing. The client may
start his AFC system with transport ticketing and add up new applications
as the system is spreading for a city card for example.
In addition to these features, C.carte has a triple DES crypto processor
according to ISO 7816-4 standard, type A cards can emulate Mifare 1K
functions, C.carte complies with Common Criteria Evaluation and benefit
from a high speed exchange rate.