Geneva-based STMicroelectronics reported second quarter net revenues of $1.5 billion, a 13% increase from the 2002 first quarter, and just modestly below the $1,587.2 million of last year’s second quarter. Gross profit was $575.8 million, a 27.4% sequential increase from the prior quarter’s $452.0 million. Four out of the five market segments achieved double-digit sequential revenue growth in the second quarter. The “Industrial & Other” segment , which includes smart cards, increased 22.2%. During the second quarter STM sampled to leading wireless manufacturers a 64Mbit Flash memory with a dedicated Multi-banking architecture processed in 0.15-micron technology. Continuing the trend towards vertical package integration, ST completed the development of its first 4-stack multi-memory product holding 2 Flash, 1 SRAM and 1 Pseudo RAM memory.Details
The consortium of ACI Worldwide, Diebold, Thales e-Security, and VeriFone yesterday announced the publication of a draft security specification proposing the first global interoperable method for triple DES session key management. The increasing sophistication and power of mainstream computing equipment shortens the useful life of the current single DES key management systems and requires the industry to proactively address the need for security upgrades.Details
WA-based InfoSpace, a provider of wireless and Internet software and application services, reported Tuesday that its Merchant Services unit processed more than 20 million transactions, accounting for more than $1.5 billion in total dollar volume during the second quarter. InfoSpace’s channel for selling merchant services has grown to include more than 1,200 resellers. Overall 2Q/02 revenues were $33.5 million with a net loss of $13.5 million. Merchant Services accounted for 38% of total revenue, up from 36% in the first quarter. During the quarter, more than 10,000 new merchant accounts were established. Notable merchants added during the quarter included Seattle’s Best Coffee, Cleveland Indians Baseball Company and the Nature Conservancy Catalog. For complete details on InfoSpace’s 2Q/02 results visit CardData ([www.carddata.com]).
FL-based GPM Associates released the Government Buyers Credit Cards database which provides access to 300,000 active government buyers who make purchases with credit cards with no approval process. This verified, transactional data is valuable for all aspects of Database Marketing, Direct Marketing, Telemarketing, E-Commerce, Competitive Analysis and Market Research.Details
China Construction Bank has begun levying a 2 yuan transaction fee for customers using an ATM belonging to another bank. This is the first time a Chinese bank has levied such fees which are not sanctioned by the China’s central bank. Furthermore, the People’s Bank of China and the State Development Planning Commission recently banned all bank fees pending further review. The central bank and the ministry which regulates prices are now developing detailed rules on service charges. The new ATM fees by CCB went into effect this week and currently apply only to Beijing customers. The PBC and SDPC rules do not apply to foreign banks operating in China.Details
Miami-based iDine Rewards Network reported total net operating revenue for the second quarter of $18.8 million and net income of $7.5 million. Gross dining sales for the quarter amounted to a record $65.4 million, representing an increase of 32.3% over the corresponding prior year period’s dining sales of $49.4 million and a 14.8% increase over the $57 million reported in the previous quarter. The company offers its members a variety of dining savings and rewards programs at more than 8,600 restaurants throughout the USA via a registered credit card platform. The Company currently has 12.8 million credit cards registered through 9.8 million enrolled accounts. Dining incentives are offered through the Company’s dining programs, either branded under the name iDine or provided through co-branded and private label partnerships, such as airline frequent flyer programs, club memberships or other affinity organizations. For complete details on iDine’s 2Q/02 results visit CardData ([www.carddata.com]).
The merger of Fair Isaac and HNC Software was approved yesterday by 98% of Fair Isaac stockholders and 70% of HNC’s stockholders. Under the merger agreement, HNC stockholders would receive 0.519 of a newly issued Fair, Isaac share for each share of HNC common stock. Following the merger, HNC stockholders would own approximately 36% of the total outstanding stock of the combined company.Details
San Francisco-based Consumer Action and Capital One announced the third phase of the “Money Wi$e” program which targets Latinos. Through the Money Wi$e partnership, the growing Latino population has access to free brochures in English and Spanish that teach responsible banking methods in simple, straightforward terms. According to the Federal Reserve Bank, nearly 13 million or one out of four Latinos living in the United States do not have bank accounts.Details
PayPal reported yesterday its second consecutive quarter of profits. Revenues for the second quarter totaled $53.8 million and net income was $529,000. PayPal estimates third quarter revenues could range from $56 million to $57 million. For the second quarter, PayPal earned an average transaction revenue rate of 3.33% of total payment volume. PayPal incurred an average transaction processing expense rate of 1.14% of total payment volume; the percentage of payment volume funded by credit cards declined to 46.2% in the second quarter, from 50.5% in 2Q/01, and 47.7% in the first quarter of this year. Transaction revenues less transaction processing expenses and less the provision for transaction losses, which amounted to 0.38% of total payment volume, resulted in a gross margin of 54.3% for the second quarter of 2002. For the second quarter, the payment volume sent to business and premier accounts amounted to 90% of total payment volume. This volume increased to $1.45 billion in the second quarter of 2002, representing 10% growth from $1.31 billion in the first quarter, and 119% growth from $663 million in the second quarter of 2001. In the second quarter, registered accounts grew by 2.5 million to 17.8 million. Business and premier accounts grew by 480,000 in 2Q to a total of 3.7 million, and international accounts grew by 399,000 to a total of 1.8 million. For complete details on PayPal’s 2Q/02 results visit CardData ([www.carddata.com]).
USA Payment Systems said Tuesday it is using Transaction Network 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 cardholders 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.Details
The capitulation in the stock market may drive card-related stocks to new 52-week lows today. Yesterday the Dow fell to 7702, a 23% decline for this year, while the S&P 500 fell to its lowest point since May 1997. The collapse in the U.S. stock market reverberated around the world overnight and may create some panic selling today in the US markets. In after-hours trading, MBNA was trading at $14.15 and AmEx was trading at $28.97. Providian was down slightly in after-hours trading, while the other card stocks were unchanged. Metris hit a new low yesterday as the sub-prime credit card market continues to get battered.
TOP CARD STOCKS
COMPANY 7/23 CLOSE 52-WK LOW
American Express $28.66 $24.20
MBNA $13.80 $13.54
Capital One $30.99 $29.99
Providian $ 2.84 $ 2.00
Metris $ 2.35 $ 2.35
First USA is expanding its National Association of Realtors VISA program to include the “Value Miles Reward Program” beginning in November. Through the partnership, NAR members, national, state and local association staff and their immediate families can take advantage of the exclusive Realtor Platinum Visa card — either a personal or business credit card. Cardmembers enjoy one of the lowest rates available on purchases and balance transfers with no annual fee.Details