Hypercom 2Q/02

Hypercom reported second quarter operating income of $3.3 million compared to 2Q/01’s operating loss of $2.1 million. The company also announced this morning that President and CEO Christopher Alexander has been elected Chairman of the Board to succeed George Wallner, the company’s founder and chief strategist. Net revenues for second quarter of $75.1 million were unchanged from the prior year and slightly under previous guidance. The revenue shortfall was primarily due to a timing issue in product delivery, and further, a currency translation charge due to the devaluation of the Brazilian real and Argentine peso. Net income for the second quarter was $380,000 compared to last year’s net loss of $5.8 million. By business unit, the core point-of-sale and network systems business achieved an operating profit of $5.5 million for the first six months of 2002, versus a prior year operating loss of $6.3 million for the same period. During the quarter, the company began shipping its new “ICE 5500Plus” and “ICE 5700Plus” terminals that incorporate Hypercom’s new “SureLoad” clamshell printing technology. For complete details on Hypercom’s 2Q/02 results visit CardData ([www.carddata.com][1]).

[1]: http://www.carddata.com

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eFunds 2Q/02

eFunds Corporation reported this morning that net income for the second quarter was $3.9 million compared to $7.7 million one year ago. Revenues for the second quarter were $133.0 million, essentially flat as compared with revenues of $132.8 million reported in 2Q/01. Results for the second quarter included $10.4 million in restructuring and other pre-tax charges. eFunds said revenue declines from data and software sales over the prior year period were offset by growth in its ATM management and electronic payments businesses. Revenues from electronic payments increased 3% to $47.3 million from $45.7 million in the second quarter of 2001. Revenue growth was driven by higher EBT case counts and renewals of certain government contracts at improved rates. Electronic payments reported operating income rose to $14.1 million in the second quarter compared to operating income of $11.5 million in the second quarter of 2001. The ATM management services segment reported revenues of $27.5 million, as compared to $18.3 million reported in the second quarter of 2001. The growth in this segment was due primarily to acquisitions, as well as increased branding and equipment sales revenue. For complete details on eFunds’ 2Q/02 results visit CardData ([www.carddata.com][1]).

[1]: http://www.carddata.com

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Bankruptcy Reform

The wrangling between Sen. Charles Schumer and Rep. Henry Hyde over abortion-related language in the bankruptcy reform legislation officially ended last night as committee conferees signed off on the package. The House could vote on the legislation today, and the Senate could follow next week. It could become effective as early as next March, if President Bush signs the law, as he has previously indicated. The abortion provision prevents protestors, who bar others from abortion services through the use of intimidation or interference, the ability to discharge debts arising from those actions. During the first three months of this year, 379,012 bankruptcy petitions were filed, the highest number of cases ever filed in any first calendar quarter. The total filings also broke the bankruptcy filing record for any 12-month period. The reform legislation, the most comprehensive in 25 years, will add a needs-based provision to the bankruptcy law, forcing some petitioners into a Chapter 13 repayment program instead of a Chapter 7 liquidation program. (CF Library 5/20/02)

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5C FLASH STANDARD

Hitachi, Matsushita Electric Industrial Co, Ingentix GmbH & Co. KG/Ltd., SanDisk Corporation and Toshiba announced the creation of the “Mobile Commerce Extension Standard” for flash memory cards. Adding these security capabilities will enable flash memory cards to be used in electronic payment and the purchase of entertainment content such as music and video. Flash memory cards are mainly used to capture and store digital photos, digital video, data and audio. The new 5C standard outlines how the security features can be implemented in flash memory cards. The new standard will be promoted and licensed in the open market so that card standard organizations, card manufacturers and device vendors can use it for the implementation of their products. It is expected that complete standard specifications and licensing documents will be available to the public by October, 2002.

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TruePay

Fort Knox National Company has announced the upcoming release of its new “TruePay” electronic payment program. The TruePay program combines FKNC’s telephone and Internet payment technologies into a multi-channel, unified solution for bill payment. TruePay also provides consumer-direct payment options, allowing customers to expedite next day payments by phone or Internet.

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EMERGIS 2Q/02

Montreal-based BCE Emergis reported second quarter revenue of $141.9 million compared to $132.0 million for the first quarter and to $158.7 million in the second quarter of 2001. The net loss for the quarter, including restructuring and other charges, was $95.8 million, compared to a net loss of $90.6 million for the same quarter one year ago. The company also announced that CFO, Nelson Gentiletti, will be leaving the company by the end of August. J.P. Mazzanti, currently Vice President and Controller, has been appointed interim CFO. Subsequent to quarter end, Emergis announced the expansion of its relationship with VISA, extending the contract signed last year with VISA U.S.A. through the signing of a new agreement with VISA International to support the worldwide development and hosting of Visa Commerce.

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Global Payments Board

Atlanta-based Global Payments announced a plan for Paul Garcia, currently President and CEO, to assume the additional role of Chairman of the Board of Directors succeeding Robert Yellowlees, and also announced that Garry Betty, president and CEO of EarthLink, has been elected to serve on the Company’s Board of Directors. Global Payments Inc. is a leading provider of electronic transaction processing services to merchants, ISOs, financial institutions, government agencies and multi-national corporations located throughout the United States, Canada, the United Kingdom and Europe.

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TNS CONNECTIONS

USA Payment Systems is using Transaction Network Services’networks and services to transport payment card authorizations from ATMs in the UK and from debit-card enabled slot machines in the U.S. TNS is providing the network for USA Payment Systems to process transactions from ATM/debit-card enabled slot machines located in U.S. casinos. The application, which is currently testing in one casino, will allow ATM/debit-card holders to receive cash right from the machine, instead of having to acquire cash through ATMs or credit card advances. USA Payment Systems is targeting more than 400,000 slot machines for the application. USA Payment Systems drives over 60,000 credit card/POS terminals, 1500 ATMs, and processes over 5 million transactions per month. Major customers of USA Payment Systems include Bank of America and Global Cash Access.

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Penna GE Biz Cards

GE Business Productivity Solutions has signed The First National Bank of Slippery Rock, Pennsylvania, to market commercial credit cards to the bank’s business customers. Under the agreement, GEBPS will make the Productivity Visa Card available to The First National Bank of Slippery Rock’s middle market and small business customers. The Productivity Card suite of products benefits companies by helping streamline purchasing and payment processes and control costs.

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Chase Signs ISO

Los Angeles-based Direct Card Services has signed a three-year agreement with Chase Merchant Services to be an ISO. Direct Card Services, as a registered ISO, will solicit merchants for payment processing services and submit the merchant applications to Chase Merchant Services. Those merchants that are approved will be equipped to accept payment processing of card transactions.

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Viad 2Q/02

Viad reported second quarter revenue of $418.5 million and net income of $32.3 million. Payment Services’ revenues grew 10.1% to $206.0 million from $187.0 million in the 2001 second quarter. MoneyGram’s transactions grew over 32% from the prior year’s second quarter. Viad says its Wal-Mart MoneyGram rollout is now complete and they are processing transactions from almost every U.S. Wal-Mart location. Viad says the Payment Services segment will again show continued growth and is expected to deliver revenue growth in the low double-digit to low teens for the quarter. For complete details on Viad’s 2Q/02 results visit CardData ([www.carddata.com][1]).

[1]: http://www.carddata.com

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