SIM Voice Card

SchlumbergerSema, a business unit of Schlumberger Limited, and Domain Dynamics Limited, the UK voice and signal specialist, announced a security breakthrough for mobile phones which safeguards access to handsets by means of voice authentication. This new system runs on a SIM (subscriber identity module) card and requires no additional hardware, making it cost-effective and simple to introduce.

The technology ensures that only legitimate users can access a phone by using a locking mechanism, which operates in the familiar fashion of a PIN code. Authentication simply requires the user to speak a phrase or word as the phone is switched on, which is compared in real-time with a reference voiceprint stored inside the tamper-proof SIM card’s memory.

Voice authentication is the most natural method of introducing state-of-the-art security into the mobile phone marketplace,” said Jorgen Rasmussen, president, Cards at SchlumbergerSema. “By basing the solution on the standardized SIM platform, it becomes cost-effective and simple, providing a highly flexible mechanism for operators to address the widespread public concern over privacy and security.”

The new system has been developed through a partnership between SchlumbergerSema, which provides the SIM ToolKit applet, Domain Dynamics Ltd, which provides the voice authentication algorithm, and Mitsubishi Electric Telecom, which has implemented the technology on the Trium Mondo GSM/GPRS PDA phone.

The system is provided as a SIM ToolKit applet, which may be loaded onto any standard Java Card(TM) SIM. Leveraging the unique nature of the signal processing algorithm designed by Domain Dynamics Ltd, and the lean nature of the man-machine interface program, the applet is extremely small — requiring just 2.5 Kbytes of memory in total.

SchlumbergerSema ([][1]) is a leading information technology services company providing consulting, systems integration, managed services, and products to the telecommunications, energy and utilities, finance, transport, and public sector markets. Domain Dynamics Ltd ([][2]) the voice and signal specialist provides powerful, compact and cost-efficient solutions for word recognition, voice authentication biometrics, signal processing, and machinery condition monitoring and is focusing primarily on solutions to applications in noisy or restricted environments. Java Card is a trademark of Sun Microsystems.




SCM Microsystems, Inc., a leading provider of
solutions that open the Digital World, announced that it will acquire
Towitoko AG, a leading supplier of smart card-based security solutions for
home banking and private PC access in the German-speaking market. With this
acquisition, SCM strengthens its PC Security business with the addition of
proven software applications for smart card data management and security, as
well as by increasing its market penetration in Germany.

SCM expects the acquisition of Towitoko AG will be completed during the
second quarter of 2002. The company further expects the acquisition to result
in additional revenues of approximately $5 million and operating income of
$500,000 in the current fiscal year. SCM is paying approximately $5 million in
cash to purchase Towitoko AG, a private company based in Munich.

Towitoko AG is a leading supplier of smart card readers and smart
card-based solution packages to the German market. Its customers include
leading German banks, such as Deutsche Bank and Dresdner Bank, who use its
smart card readers to deploy home banking applications to their account
holders. In addition, Towitoko AG provides a variety of offerings based on its
proprietary software applications that allow home PC users to implement their
own smart card-based security or data management systems.

“The acquisition of Towitoko will extend SCM’s market share and technology
leadership within the smart card-based PC Security sector,” said
Robert Schneider, chief executive officer of SCM Microsystems. “The
combination of its application software and our strong reader platform, which
is designed to be compliant with all emerging standards for the use of smart
cards, further strengthens our product offerings. In addition, Towitoko’s
strong position as a supplier to the German home banking industry boosts our
competitive position in this emerging market, at a time when financial
institutions worldwide are increasingly adopting smart card-based programs to
increase security and differentiate themselves with customers.”

About Towitoko AG

Towitoko AG is a leading supplier of intelligent IT security solutions in
the area of smart card readers and smart card solutions. The company addresses
the dramatically increasing demands on security for electronic data transfer
with products that emphasize quality, functionality and terrific
price-performance ratio. As a result, Towitoko is a leader in the growing
market for smart card readers and smart card-based solutions. Towitoko’s
customers include a large number of extensive reference projects, including
Motorola, Giesecke & Devrient, Visa, Dresdner Bank and UBS. For more
information, please visit the company’s Web site at

About SCM Microsystems

SCM Microsystems is a leading supplier of solutions that open the Digital
World by enabling people to conveniently access digital content and services.
SCM’s Security business provides smart card reader technology for the PC
platform and conditional access modules for the digital TV platform to OEM
customers in the government, financial, enterprise and broadcasting markets
worldwide. The company’s Digital Media and Video business provides hardware,
software and silicon solutions for creating and sharing digital media content
to the worldwide retail market under the Dazzle(TM) brand. Global headquarters
are in Fremont, California, with European headquarters in Ismaning, Germany.
For additional information, visit the SCM Microsystems Web site at


Online Ads 2002

While online ad spending by credit card issuers collapsed during 2001, some tracking firms are predicting an 8% to 10% rise in Internet marketing this year. Two of the most active online credit card marketers, NextCard and Providian, withdrew ads during the fourth quarter following financial turmoil spurred by accounting problems. According to NYC-based Taylor Nelson Sofres, Providian spent $29.3 million last year for online ads, the third largest amount behind eBay and GM. Boston-based Compete says NextCard and Providian each received about 260,000 online credit card applications monthly. Troubled sub-prime issuers CompuCredit and Net First National Bank, also active during 2001, have stopped online marketing. Other major issuers such as Bank of America and Capital One reduced online marketing last year. Juniper Bank is currently cutting back on Internet marketing. Nevertheless, Taylor Nelson Sofres says overall ad spending will grow by 8.8% this year after falling 14.7% last year. The research firm estimates total online ad spending hit $2.5 billion during 2001. Meanwhile, the suspension of online marketing by the most active credit card advertisers has proven to be a boon for other issuers during the first two months of 2002. Response rates for current advertisers, such as Discover, have soared by 75% this year, according to CardWatch ([][1]). (CF Library 10/31/01; 1/11/02)



ICMA Card Training

International Card Manufacturers Association, a global non-profit association for card manufacturers, personalizers, and service providers, recently launched its password protected Basics of the Card Industry Training Program located on the ICMA Web site at [][1].

The program provides member company employees with a basic understanding of the history, breadth, and technical information about cards of all types including manufacturing, personalization, and application processes. Members of ICMA and their employees have free access to the training program.

Contents of the program include history, card markets, industry scope, card product categories, plastic card manufacturing, materials and components overview, post manufacturing, industry trade associations, and a glossary of industry terms.

“We wanted to develop an innovative program that would not only teach new employees of member companies about the card industry, but also familiarize those within the company that are not directly involved with the manufacturing or personalization process,” said Jeffrey Barnhart, executive director of ICMA. “The association’s goal is to enhance the program each year by expanding on a particular manufacturing process, such as chip card production and personalization.” For more information about the Basics of the Card Industry Training Program, or for information on becoming a member of ICMA, contact Lynn McCullough at (609) 799-4900; e-mail or visit the ICMA Web site at [][2].

About ICMA

Based in Princeton Junction, NJ, ICMA is a non-profit association of plastic card manufacturers, personalizers and related industry participants. With more than 220 members globally, the ICMA acts as a clearinghouse for industry issues, including the production, technology, application, security and environmental issues of plastic cards.



Coinless Licenses AGC

Coinless Systems Inc. a leading developer, manufacturer, and supplier of coinless technology and products for the gaming industry, announced that the Company has signed a licensing agreement with Alliance Gaming Corporation.

Under terms of the licensing agreement, Alliance Gaming Corporation’s Bally Gaming and Systems business unit is allowed to use Coinless System’s patented technology, Scan After Print(TM), in all of the slot machines manufactured by Alliance Gaming Corporation. In the agreement, Coinless Systems grants Alliance Gaming Corporation a non-exclusive license to use devices within the scope of Coinless System’s U.S. Patent Nos. 6,012,832 and 6,340,331 entitled “Cashless Peripheral Device for a Gaming System” for limited purpose of making, using, offering to sell, and selling Alliance Gaming Corporation gaming machines incorporating devices within the scope of (the ‘832 and ‘331 patents) so long as such devices are acquired from Coinless Systems Inc. or a licensed manufacturer or licensed supplier of CSI.

“We have observed Alliance Gaming Corporation’s development as a leading gaming supplier and are excited about this relationship with a quality company within the gaming industry. Alliance Gaming’s worldwide presence makes this very interesting for us at Coinless Systems. As I have stated before, we anticipate 2002 to be our best year in the history of the company,” commented Dennis Sorenson, CEO of Coinless Systems Inc.

About Alliance Gaming Corporation.

Alliance Gaming Corporation is a diversified gaming company with headquarters in Las Vegas. The Company is engaged in the design, manufacture, distribution and operation of advanced gaming devices and systems worldwide, and is the nation’s largest gaming machine route operator and operates two casinos. Additional information about the Company can be found on the Alliance Gaming Web site at .

About Coinless Systems, Inc.

Coinless Systems Inc. is a Las Vegas; Nevada based developer, manufacturer and supplier of coinless technology and products for the gaming industry.

Its principle products are tickets for coinless gaming machines and Scan After Print(TM), a patented process that instantly verifies and ensures the accuracy of bar coded tickets at the slot machine as well as the cashier cage.



global vendor of integrated banking software for banks and financial
institutions, announced its results for the year and quarter ended December
2001. Revenues for the quarter were US$34.7 million, up 9% compared to
the same period last year, bringing revenue for the fiscal year ended December
31,2001 to US$140.9 million, an increase of 48% compared to the previous

Operating profit for the quarter was US$29 thousand compared to US$4.8 million
for the same period last year. Operating profit remained constant at US$15.6
million for the years ended December 31, 2001 and 2000.

“2001 was a challenging year for TEMENOS. We emerged from nine months of
intense corporate activity including our Initial Public Offering in June, to
face what was one of the most challenging and unpredictable periods in recent
history,” said George Koukis, Chairman and CEO .”Management has responded to
the challenges by focusing on the execution of our business plan both in
relation to increasing revenues and to streamlining our operations and
cost. During the last quarter we continued to increase market share with
initial license fee signings, a key performance indicator for our business,
growing by 50% compared to the same period last year. At the same time we
undertook a comprehensive restructuring of our business, seeking to ensure
our operating cost structure is optimally positioned to deliver increased
shareholder value. Across sales, services, and product development we are
focused to leverage our investment efforts and our business plan for 2002. We
believe we are on track to deliver on our commitments for 2002 as communicated
during the last quarter’s results announcement”.



Revenues for the quarter were US$34.7 million, up 9% compared to the same
period last year, bringing full year revenues to US$140.9 million, up
48% compared to the prior year. Licensing revenues for the quarter were US$16.0
million, down 19% compared to the same period last year while licensing
revenues for the year were US$79.7 million, up 35% compared to the prior year.
Services revenues for the quarter were US$18.6 million, up 54% compared to the
same period last year and services revenues for the year were US$61.2 million,
up 68% compared to last year.

“We are particularly pleased to deliver quarterly revenues ahead of our
commitments to the market,” said Andreas Andreades, Deputy CEO. “Our licensing
revenues, although higher than our prior guidance, remained depressed as we
absorbing the impact of the recent slowdown in new business. The services
business continued to exhibit robust growth, driven by continued demand for
GLOBUS skills within our client base even at times of economic uncertainty.”
“During the quarter we managed to complete four deals with Tier 1 banking
institutions (Rabobank, Schroders, Fortis, Mellon) bringing our total
penetration to 23 in this market segment, ” said George Koukis, Chairman and
CEO. “We see increased activity across all markets and segments with some
markets such as Russia, emerging particularly strong. I am pleased to be able
to announce that we have decided to pursue a direct sales model in the Russian
market with our 26th office opening in Moscow this month”.

Operating profit

Operating profit for the quarter was US$29 thousand, compared to US$4.8
for the same period last year, while operating profit was consistent with the
prior year at US$15.6 million.

Gross service margins for the quarter increased to 9%, compared to 1% for the
same period last year while the full year margin for our services business was
13% compared to a modest 2% for prior year. “Services profitability, following
the repositioning of our services business as an independent profit center
within TEMENOS, is growing in line with our internal plans as we continue to
drive efficiencies in training our consultants and packaging our offering,
“said Andreas Andreades, Deputy CEO. “We expect our gross services margin for
2002 to continue to improve toward industry standard levels.”

R&D costs for the quarter were US$5.4 million, up 7% when compared to the same
period last year.”2001 represented a year of significant investment in new
product functionality, such as database and platform independence, our new
asset management solution, enhanced treasury functionality, GLOBUS Internet
Bank, and the TEMENOS Integration Platform. Over the past three years we have
invested more than US$60 million in product delivery which we believe has rendered
GLOBUS the most functionally rich, technologically advanced, open universal
banking platform in the market place today,” said Andreas Andreades, Deputy

“At the same time, we have started to see the results of our restructuring
program taking effect, with quarter on quarter R&D costs decreasing
significantly. Our program for transferring development processing capability
to lower cost countries and specifically to our development centers in India
and Thailand, will be completed during the second quarter of the current
year. We remain confident that our 2002 R&D cost will be in line with our long
term target model, representing between 16%and 18%of revenues,” said David
Arnott, Chief Financial Officer.

S&M costs for the quarter were US$7.1 million, up 22%compared to the same
period last year while full year costs were US$24.0 million, up 63%
compared to
the previous fiscal year.”We can now boast a world class sales organization
with coverage and capability to deliver increased initial license fee
signings,” said Andreas Andreades, Deputy CEO. “2002 will be a year where we
will seek to maximize productivity of the sales organization which we put in
place during 2001.”
G&A, at US$5.0 million for the quarter, was up 29% compared to the same period
last year, bringing the full year growth in G&A costs to 25% compared to
48% revenue growth. “All of our planned cost saving measures were
implemented in
this quarter and the full benefit has begun to show through in 2002. With our
lean cost base and efficient operating structure, we are now well
positioned to
manage our growth and direct new resources to exactly where they are most
needed.” said David Arnott, Chief Financial Officer.

Earnings per share

Diluted earnings per share for the quarter were US$(0.02)per share compared to
US$0.04 per share for the same period last year. For the year to December 31st
2001, diluted earnings per share were US$0.11 per share compared to US$0.20
the prior year. Fully diluted earnings per share for 2001, when adjusted for
one-off non-recurring equity repurchase financing costs, were at US$0.25
compared to US$0.22 for the previous year, up 14%.”I am very pleased that
despite the unstable economic environment and our aggressive investment in
term objectives, we have been able to deliver increased earnings per share
adjusted for non-recurring items,” commented Andreas Andreades.



On January 24th 2002, TEMENOS acquired a minority equity stake in FINANTIX
(formerly known as INFOservice),a company based in Venice, Italy, with offices
in Germany, Finland, the UK, and the US, by injecting US$2.5 million cash into
the company. We were also granted an option to acquire the remaining equity
a combination of equity and cash. The purchase will be based on an earn-out
agreement which is expected not to exceed US$20 million. This option
expires on
November 30,2002. FINANTIX develop, market, and support “One Wealth,” a
Financial Relationship Management product suite, with full multi-channel
capability, targeted at retail, private, and wealth management banking
institutions to enable them to manage their customer relationships.”The market
for Financial Relationship Management, including the provision of automated
advice is at the top of CIOs priorities,” said Ralf Emmerich, FINANTIX CEO.
provide what we believe is the most technologically advanced j2EE component-based product available in the market place today that enables banks to manage
their multi-channel customer relationship issues in the context of their
specialized financial environment”.

“CRM is probably the fastest growing sub-sector within financial services
traditional horizontal CRM vendors providing only general expertise. Our
ability to understand the financial services business provides us a unique
opportunity to deliver to banks what is missing from traditional CRM systems,”
said George Koukis, Chairman and CEO.


In January 2002,TEMENOS acquired all the shares of Quetzal Informatique SA, a
Paris-based supplier of sophisticated regulatory reporting software, as
well as
the intellectual property rights for their software for a total consideration
of approximately US$2.5 million in cash and shares. “Following the events of
September 11th regulatory reporting has come very much back in focus, and
are being asked to react to changes in regulatory demands very quickly,”
commented George Koukis. With the acquisition came a strong pipeline, in
addition to an already strong installed base in France and other French
speaking countries. More importantly it extends the GLOBUS offering to an area
historically dominated by other vendors.

2002 Guidance

Based on our existing backlog of signed contracts, which amounts to US$52.7
million (September 30,2001 US$46.1 million)and represents visibility in excess
of 9 months, combined with our expectations for converting our existing
pipeline, we are in a position to reconfirm prior guidance of revenues of
approximately US$170 million for fiscal 2002. Operating margins are
expected to
return to approximately 18% in line with our pre-Initial Public Offering
targets. Our major cost restructuring plans are expected to be completed
the first half of the year and therefore margins are likely not to accrue
evenly during the year.


TEMENOS is a global leader in providing financial institutions with integrated
banking systems that increase productivity, profitability, and allow them to
respond to changing market conditions. The company’s solutions, TEMENOS
are utilised in a variety of segments including retail and wholesale
banking as
well as for treasury and accounting functions. TEMENOS has 26 offices in 20
countries and over 270 installed client bases. The company had revenues of
US$140.9 million for the year ended December 31, 2001. In June 2001, TEMENOS
became a public company, quoted on the SWX Swiss Stock Exchange (TEMN).


Vital – Heartland

Vital Processing Services yesterday announced the renewal of a long-term agreement with Heartland Payment Systems, a full-service payment systems solutions provider with whom they have been in partnership since 1997. Heartland’s renewal agreement with Vital is for point of sale and clearing and settlement processing services for its merchant base. Founded in 1997, HPS has experienced rapid merchant account growth and today has more than 55,000 existing merchant customers with monthly bankcard processing volume exceeding one billion dollars.


BJ’s MasterCard

After 18 months of searching for a new partner, the largest operator of membership warehouse clubs in the Northeast has signed a deal for a co-branded MasterCard. BJ’s Wholesale Club and First USA will launch the new MasterCard in June, targeting more than six million BJ’s club members. In 1995, BJ’s teamed up with Beneficial National Bank to issue a co-branded MasterCard. However, after opening 260,000 accounts, the co-branded program began to unravel in Sept 1997 when BNB filed suit to end the relationship. BJ’s counter-sued, alleging breach of contract, and sought a temporary restraining order to prevent BNB from canceling 12,000 BJ’s MasterCard accounts. Beneficial said the co-branded program was unprofitable and sought to cancel the accounts of cardholders who consistently paid off their balances in-full. The parties quickly settled and the program eventually became just a Beneficial card. The BNB/BJ’s contract expired in Aug 2000. The new MasterCard deal with First USA will offer qualified BJ’s club members the opportunity earn up to 1.5% rewards via “BJ’s Bucks” depending on spending habits and purchases both in and out of the club. The no annual fee card will carry an 6-month 2.9% APR, followed by a variable rate, currently at 13.49%. BJ’s is the only wholesale club that accepts VISA and MasterCard. BJ’s and Sam’s Clubs accept Discover. BJ’s has 131 club stores in 16 eastern states. (CF Library 9/29/97; 10/1/97; and 10/16/97)



Fincentric Corporation, a leading global
provider of enterprise wealth management and core banking software today
announced that Banco Inbursa of Mexico is now providing wireless banking
services delivered through Fincentric’s i-Wealthview Wireless(tm).
The new services enable Inbursa customers to access account data and other
information, as well as perform transactions through wireless devices such
as cellular phones and personal digital assistants (PDA). The service
includes account balances, transfers to and from accounts within Inbursa and
with outside institutions, utility payments, orders for cash and check
deliveries, along with news and stock quotes.

Banco Inbursa belongs to Inbursa Financial Group, (Grupo Fianciero Inbursa),
which includes Mexico’s leading brokerage, insurance, bonding and investment
firms, managing assets valued at US$12 billion as of September 2001. Banco
Inbursa is associated with the Grupo Carso conglomerate, including leading
retail chain stores Sanborns, Sears Roebuck, CompUSA, and Carso Global
Telecom, including Mexico’s national telephone company (Telmex).

i-Wealthview Wireless enables financial institutions to conduct secure
wireless transactions. It introduces a new delivery channel that increases
the reliance of customers on the financial institution and creates a
personalized information service that couples financial transactions,
content and future m-commerce capabilities.

In June 2001, Banco Inbursa launched its virtual retail service to
medium-to-high income individuals and to payroll employees, on Fincentric’s
i-Wealthview(tm) banking and wealth management system. The company now
provides core banking and wealth management services through multiple points
of access including full-service branches, ATM, retail modules in Sanborns
stores, Internet, and now wireless, delivered through i-Wealthview Wireless.

“With i-Wealthview wireless we now deliver unprecedented services to our
customers in a wireless environment,” said Jose Heredia, Banco Inbursa’s
director of retail services. Since launching the i-Wealthview platform in
June 2001, Inbursa has acquired an additional 30,000 customers (47,000 to
77,000) in six months.

“i-Wealthview has the tools that allow us to analyze the needs and
profitability of each customer, so we can begin to build our relationship
with each one, Heredia said. “i-Wealthview Wireless is a value added
component that enables us to fully satisfy our customers who want access to
their accounts from anywhere and at anytime.”

Mike Cardiff, president and CEO of Fincentric said, “Banco Inbursa is taking
a leading role in the Mexican market for innovative financial services.
Their rapidly growing customer base is a testament to the successful
adaptation of our core banking and unique wealth management applications. We
are pleased to see Inbursa customers now realizing the convenience and
timeliness of wireless banking on our platform. In the future, more and more
customers will demand the ability to track their finances and personal net
worth through the wireless channel. For institutions such as Banco Inbursa,
i-Wealthview Wireless is a solution that helps strengthen their existing
customers’ relationships while attracting new customers.”

About Fincentric

Fincentric Corporation is a leading global provider of enterprise wealth
management and core banking software. Fincentric’s i-Wealthview(tm) wealth
management software products include ‘next generation’ core banking,
Customer Value Management(tm), data aggregation, Internet and wireless
financial portals and full multi-channel support. Its revolutionary Customer
Value Management(tm) capabilities provide profitability and relationship
analysis that allow financial institutions to recognize the value of each
customer, and maximize their profitability. Fincentric products enable
financial institutions to quickly deploy solutions for their converging
financial service offerings, while also supporting capabilities for
increasing customer profitability, customer acquisition, and retention.
Fincentric has approximately 300 customers worldwide, and has strategic
relationships with Microsoft, Compaq, and other international partners. For
more information, visit Fincentric’s home page at


Nova – Key

NOVA Information Systems and KeyCorp announced Tuesday the renewal of their alliance to operate Key Merchant Services, a joint venture between NOVA and Key that provides payment-processing services to more than 55,000 merchant locations. NOVA, the country’s third largest merchant payment processor, will continue processing merchant transactions under this renewal, with 2002 processing volume projected at $6.5 billion, for the Cleveland-based company. Key and NOVA have been partners since 1998 and this contract extends their alliance to 2010.


eFunds & SEC

eFunds Corporation announced that the Securities and Exchange Commission is conducting an informal inquiry of eFunds following the Company’s March 4, 2002, announcement regarding the restatement of certain 2001 results relating to the acquisition of Access Cash. The SEC has requested information regarding the Company’s 2001 financial results

“eFunds intends to cooperate fully with the SEC and to take all action necessary to enable the SEC to complete its review as expeditiously as possible,” said Gus Blanchard, Chairman and Chief Executive Officer.

About eFunds

eFunds delivers innovative, reliable and cost-effective technology solutions to meet its customers’ payment and risk management, e-commerce, and business process improvement needs. eFunds provides its services to financial institutions, financial services companies, electronic funds networks, retailers, government agencies, e-commerce providers, and other companies around the world. For more information, visit .