ClearCommerce Mrkg Mgr

ClearCommerce Corporation, a leading provider of packaged and modular online transaction processing software for Internet purchasing and fraud protection, announced that Gregg Gumbinger has been named industry marketing manager.  In this role Gregg will oversee strategic marketing initiatives within the financial services industry.

Previously, Gumbinger was vice president of sales and marketing at Electronic Press Services Group (EPSG), an Internet systems integration firm based in Cambridge, MA, where he played a major role in developing and rolling out storefronts@fleet for Fleet Bank.

Prior to EPSG, Gumbinger was director of marketing in the Internet Commerce Group within First Data Merchant Services (FDMS) at First Data Corp. While at FDMS, he was instrumental in rolling out Internet-based products, services, and marketing programs to the FDMS alliance banks and processing clients throughout the U.S.  Before that, Gregg was with Visa USA for 15 years.  While at Visa USA, Gumbinger held various positions within the sales, marketing, and operations divisions, the last five years in the Member Relations group, where he marketed Visa’s products and services to financial institutions in the Mid-Atlantic region.

“Gregg brings a tremendous amount of industry knowledge about Internet transaction processing within the financial services market,” stated Steven E. Saltwick, vice president of marketing at ClearCommerce.  “He is well respected within the banking community, and his work at FDMS and EPSG showcased his talents.”

About ClearCommerce Corporation

ClearCommerce Corporation, based in Austin, Texas, is a leader in Internet e-commerce transaction payment, fraud, processing, and reporting technology, and is dedicated to advancing technology and safe commerce practices in the Internet e-commerce marketplace.  ClearCommerce offers the first Internet online transaction processing (OLTP) software that integrates transaction tracking, fraud protection, and sales over the Internet into existing business processes with one reliable, scalable, (spelling of scalable is per Webster’s online) and secure package for both UNIX and NT environments.  For more information on ClearCommerce and its line of Internet payment processing solutions, please visit or call 888-280-9999.


Fall Spike

Fitch IBCA reported Thursday that bankruptcy filings set a new one-month record in October, and that bankruptcies are growing at a 4% annual rate compared to 1997. October is historically a higher than average month for bankruptcies. Last month 127,468 filings were made. Fitch says the news will push chargeoffs and delinquencies higher for the next three months. For the September collection period chargeoffs among credit card-backed securities declined slightly to 6.35%. Delinquencies (60+ day) for the same period also held steady at 3.19%.


Easy Card

Electronic Transactions and Technologies and Oberthur Smart Cards USA signed agreements Thursday for a strategic alliance to develop the Oberthur-produced ‘Easy Card’. The new card is a combination credit card and ATM card for banking consumers and an electronic wallet and stored-value card for nonbanking consumers. ET&T is presently distributing free ATM-card/credit-card/smart- card terminals in public locations. The first application of these ET&T terminals is to allow waiting consumers the ability to shop from printed catalogs while they wait at car washes, hair salons, hotel lobbies, clinics, etc. The first pilot will begin in the Los Angeles-area where the ‘Easy Card’ will be used with the terminals in public locations, and later in the home, for paying a utility bill by the ATM-card and PIN side for a banking consumer and by the stored-value-card side of the ‘Easy Card’ for a nonbanking consumer. Both firms also indicated Thursday that usage of the ‘Easy Card’ and the ET&T terminal to legally replenish or open off-track-betting gaming accounts and other types of sports gaming will also be explored.


CoinBank NE Trial

CoinBank Automated Systems, Inc. , a wholly owned subsidiary of Cash Technologies , announced Thursday that it has reached agreements with two customers to install its CoinBank, advanced coin deposit machines on a trial basis.  These customers, consisting of a regional bank and a supermarket chain, operate a combined total of 160 locations in the New England states.

“We are gratified that customers in both the financial and retail sectors are understanding the compelling reasons to choose CoinBank over the competition,” said Cash Technologies Chairman and CEO Bruce Korman.  “In the short time since the company’s July initial public offering, the company has achieved significant potential density in the New England market, an important element in profitably operating a network of self-service machines.”

Cash Technologies, Inc. develops and markets innovative e-commerce kiosks, including advanced self-service coin counters and the multi-function ATM-X automated teller machine.  The company also provides computerized cash processing services to banks, armored carriers, rapid transit agencies and other cash-intensive businesses.



Transaction Systems Architects, Inc. , a leading global provider of application software for electronic payments reported record revenue of $79.3 million for the fourth quarter of fiscal year 1998, an increase of 28 percent over the same quarter last year. Pro forma net income for the quarter was $9.2 million and $.30 per share (diluted). The pro forma results exclude non-recurring transaction expenses of $2.5 million related to the acquisitions of IntraNet, Inc., Smart Card Integrations Limited (SCIL), and Professional Resources, Inc. (PRI). These acquisitions were completed in the fourth quarter and have been accounted for as poolings of interest. Accordingly, TSAI’s financial statements have been restated to include the results of IntraNet, Inc. for all periods presented. SCIL’s and PRI’s results of operations prior to the acquisitions were not material.

Operating income was $14.0 million for the quarter compared to operating income of $10.6 million for the same quarter last year, an increase of 33 percent. Excluding the aforementioned transaction related expenses, the company reported pro forma net income of $9.2 million, $.30 per share (diluted) compared to $7.2 million, $.24 per share (diluted) in the fourth quarter 1997. Compared to net income and earnings per share for fourth quarter 1997, the current increase was 29 percent and 25 percent, respectively. Net income and earnings per share including the transaction related expenses was $6.9 million and $.22 per share (diluted), respectively.

For the fiscal year ended September 30, 1998, revenues were $289.8 million compared to $238.5 million for fiscal year 1997, an increase of 22 percent. Operating income was $51.0 million for the fiscal year as compared to $38.6 million for fiscal year 1997, an increase of 32 percent. Operating income for fiscal year 1997 included acquisition related charges from the company’s leveraged buyout totaling $800 thousand. Without these charges, operating income on a pro forma basis was $39.5 million for fiscal year 1997. On a comparable pro forma basis, operating income increased 29% compared to fiscal year 1997.

Excluding the aforementioned transaction related expenses and their related tax effects, pro forma net income and earnings per share for fiscal year 1998 was $33.5 million, $1.10 per share (diluted) compared to pro forma net income and earnings per share for fiscal year 1997 of $25.2 million, $.84 per share (diluted) an increase of 33 percent and 31 percent, respectively. Net income and earnings per share for fiscal year 1998 including the transaction related expenses was $31.1 million and $1.02 per share (diluted), respectively.

The company completed the quarter with $185.2 million in backlog consisting of $65.8 million in non-recurring revenue and $119.4 million in recurring revenue. Backlog increased $43.8 million, a 31 percent increase compared to backlog for September 30, 1997. Non-recurring revenues are composed of fees specified in software and services contracts the company expects to recognize in the next 12 months. Recurring revenues include all monthly license fees, maintenance fees and facilities management fees that the company expects to recognize over the next 12 months.

Cash flow from operating activities was $11.7 million for the fourth quarter of fiscal year 1998. Year-to-date cash flow from operating activities totals $35.3 million. The combined cash and cash equivalent balance at the end of fiscal year 1998 was $62.6 million.

“We have completed another solid quarter of strong revenue and earnings growth,” said William E. Fisher, chairman, chief executive officer and president of Transaction Systems Architects. “During the quarter we completed three acquisitions which will position us for the opportunities that are ahead in 1999 within their respective businesses.”

Transaction Systems Architects’ software facilitates electronic payments by providing consumers and companies access to their money. Its products are used to process transactions involving credit cards, debit cards, smart cards, home banking services, checks, wire transfers as well as automated clearing and settlement. Transaction Systems’ solutions are used on more than 3,000 product systems in 70 countries on six continents.

For complete 3Q financials on this company visit [][1]



Trajecta’s New Prod Mgr

Trajecta, Inc., an Austin, TX-based solutions company, announced Thursday the appointment of Frank Caruana as Director of Product Marketing.  Mr. Caruana will oversee the strategic development and direction of Trajecta’s Predictive Optimization Solutions.

Caruana comes to Trajecta with over a decade of marketing and development experience in the credit card industry.  Before joining Trajecta, Caruana served as Principal and Director of Marketing and Economic Systems at Danielian Consulting Group.  Prior to Danielian, Caruana was Director of Portfolio Management at Advanta Corporation.

As Director of Portfolio Management with Advanta, Caruana was directly responsible for building and managing Advanta’s Portfolio Marketing Department.  Caruana’s responsibilities included database marketing strategy, portfolio profitability, segmentation and targeting.  During his tenure, Advanta was recognized by the industry as one of the fastest growing and most profitable credit card issuers in the U.S., with over 7 million accounts and $10 billion in receivables.

“We are pleased to add Frank Caruana to our team,” said Trey Herschap, CEO and Co-founder of Trajecta.  “He is a proven innovator whose credit card industry experience and expertise will be instrumental for Trajecta’s future product direction.”

While at Advanta, Caruana was an active member of various developmental groups with First Data Resources (FDR).  He was a key R&D member of the Transaction Level Processing (TLP), Enterprise Presentation and USA Value Exchange projects.

Prior to Advanta, Caruana was a Vice President of Marketing at Bank of America (Security Pacific Bank).  Caruana developed and managed all MasterCard/Visa Business Card products throughout seven states and over 1,000 branches.  He also was instrumental in developing the first procurement card product with ProCard, Inc. and MasterCard.

Caruana began his career as the Gold Card Product Manager at Valley National Bank of Arizona.  While at Valley National Bank, Caruana developed and introduced the first Shopper’s Assurance and Warranty Protection programs in the U.S. that were subsequently replicated by MasterCard, Visa and Citibank.

Caruana received his Masters and Bachelors degrees in Economics from the State University of New York.  Caruana was an Associate Professor of Economics at the State University of New York, College at Buffalo before his involvement in the credit card industry.

Trajecta, Inc., based in Austin, Texas, provides predictive optimization solutions to the credit card industry that assess risk and predict customer behavior with greater certainty.  Trajecta utilizes technologies spawned from over $75 million of scientific research at the Microelectronics and Computer Technology Corporation (MCC).  Individual decisioning capabilities differentiate Trajecta’s technologies from any other in the market today.


Red Roof Cards

Red Roof Inns and AT&T  have joined together to market AT&T ‘PrePaid Cards’ at all company-operated Red Roof Inns.  The custom-designed ‘Red Roof/AT&T PrePaid Cards’ will be available in 30-, 60- and 100-minute denominations. Red Roof Inns is one of the only hotel chains in the U.S. to implement an automated point-of-sale solution for selling ‘AT&T PrePaid Cards’. Red Roof Inns, Inc. has 280 properties in 36 states and the District of Columbia.


Freedom ATM Network

Nineteen Pittsburgh-area banks announced Thursday the formation of the ‘Freedom ATM Alliance’.  This new ATM network will give the customers of each participating bank surcharge free access to the ATMs of all the participating banks. Collectively, the banks have 177 ATMs in southwestern Pennsylvania, 110 of them in Allegheny County, and over 300,000 ATM cards.The network is scheduled to begin operations on Jan. 4.  Each bank will communicate to its customers the location of the surcharge free ATMs, which will be identified by a special logo. Dollar Bank is the largest participant with 58 ATMs, 46 sites and 165,389 cards.


Euronet Up 126%

Euronet Services Inc. , operator of the only independent automated teller machine network in Central Europe, announced a 19% increase in revenues between the second and third quarters of 1998. Total revenues for the first nine months of the year increased 126% over the comparable period last year, to $7.8 million from $3.4 million. The Company expects year-end revenues from its ATM business to be approximately $11 million in 1998.

Transactions processed on the Company’s ATM network, its main source of revenues, increased 16% between the second and third quarters of this year. Transactions for the month of October totalled 1,524,444, an 11% increase over September. Approximately 5% of the total third quarter transactions and 8% of the total October transactions were processed for client bank ATMs under network management service agreements. At the end of the second quarter, the Company was driving 46 ATMs under network management service agreements. By the end of the third quarter, that number had increased to 75 ATMs.

Total operating costs, comprised of ATM operating costs and other operating costs, increased 18% between the second and third quarters of 1998. The increase in ATM operating costs from $3.0 million in the second quarter to $3.7 million in the third quarter was due primarily to the 14% increase in live ATMs over the quarter, the cost of relocating certain underperforming ATMs in Poland, and increased maintenance fees as ATM warranties begin to expire. Other operating costs, consisting of indirect overhead costs, increased from $4.3 million in the second quarter to $4.9 million in the third quarter.

Other expenses of $379,000 for the third quarter are due mainly to foreign exchange losses on the Deutsche Mark-denominated bond issued by the Company in June. Net interest expense in the third quarter was $3.5 million, of which $2.5 million results from accrued interest on the bond.

The Company’s net loss for the third quarter was $9.3 million. Cumulative net loss for the first nine months of 1998 was $17.2 million, or $1.13 per share, compared with approximately $4.0 million, or $0.41 per share for the comparable period last year.

The number of ATMs in Euronet’s network was 1,123 at September 30, 1998, more than double the 538 ATMs on line one year ago. At the end of the third quarter of 1998, Euronet was operating 423 ATMs in Hungary, 399 in Poland, 210 in Germany, 62 in Croatia, 28 in the Czech Republic, and one in France. Of this total, 7% or 75 ATMs were operated by the Company for client banks under network management service agreements.

As of November 3, 1998, the Company’s network comprised a total of 1,199 live ATMs, including 474 in Hungary, 411 in Poland, 214 in Germany, 62 in Croatia, 37 in the Czech Republic, and one in France. Of this total, 11% or 126 ATMs were operated by the Company for client banks under network management service agreements.

Established in 1994, Euronet operates the only independent, non-bank owned ATM network in Central Europe. Through agreements with local banks and international card issuers such as Visa, MasterCard, Europay, American Express and Diners Club International, Euronet’s ATMs are able to process ATM transactions for holders of credit and debit cards issued by or bearing logos of such banks and card issuing organizations. In addition, Euronet offers outsourced ATM management and card issuance services to local banks with proprietary ATMs.


IVI Buys Debitek

IVI Checkmate announced Wednesday that it has entered into an agreement to acquire Debitek Holdings Limited in exchange for IVI Checkmate stock. It is anticipated the transaction will be complete by year end. Debitek, of Chattanooga, TN, supplies smart card and magnetic stripe card application program interfaces that interface with unattended point-of-sale equipment (copiers, printers, vending machines, revalue stations and laundry equipment) of systems integrators.These system integration partners supply cashless payment solutions to closed user groups such as universities, public libraries, commercial laundries, correctional institutions, corporate campuses, cruise ships, resorts, and military facilities and ships.


Iris ID

PINs and passwords may become a thing of the past following yesterday’s announcement that Citibank, NCR, J.P. Morgan, Lehman Brothers and Merrill Lynch’s KECALP Inc. have joined together to make a $28 million equity investment into NJ-based Sensar. Sensar manufactures iris identification products for transaction systems. Sensar’s iris identification products use standard video cameras and state-of-the-art real-time image processing to acquire a picture of a person’s iris, digitally encode it, and compare it with one on file, all in less than a few seconds. The company says research shows the matching accuracy of iris identification is greater than that of DNA testing. The strategic partners expect to incorporate Sensar’s products into several banking and consumer applications such as ATMs and in-bank teller stations. The ‘Sensar Secure Iris Identification System’ is currently being used in NCR ATMs and at teller stations at Nationwide Building Society, the UK’s largest savings and loan.


Euro Conference

In anticipation of the euro, the common European currency that will debut in 11 European countries on Jan. 1, Travel Weekly, the leading newspaper of the travel industry, is bringing together key executives from top North American travel companies to discuss the implications and effects the euro will have on their businesses, the industry and travelers.

The conference, the first of its kind for the travel industry, will be held at the Marriott Financial Center here Nov.11. Co-sponsoring the event are Visa and Marriott Hotels.

“Many people think the euro is just another currency,” says Dinah Spritzer, Travel Weekly’s Europe editor. “It’s much more complex than people realize, and that’s why we felt it necessary to go beyond the obvious issues that have been previously explored in public venues.”

Spritzer, who has been tracking the euro since its inception, says experts in fields from software to pricing have equated the problems posed by the introduction of the new currency with those of the year 2000 computing debacle.

“The possibilities for financial profit or loss are huge,” she says. “We want to make sure members of the travel industry understand the impact the euro will have on their business; the best way to package travel products, particularly with regard to pricing, and ultimately how to market them to their clients — the traveling public.”

Speakers for the Euro Conference include:

— Chris Matthews, U.S. representative of the European Union, who will explain the fundamentals of the currency.

— Ignacio Vasallo, director of the Tourist Office of Spain here and a member of the executive board of the European Travel Commission, who will present an overview of the euro’s significance to travelers.

— Simon Jarvis, senior vice president of global support services for Visa International, will provide details on how travelers will pay for goods and services in Europe once the euro has arrived.

— Sarwar Kashmeri, president of Niche Systems, who will discuss how the euro will affect legal, accounting and software.

— Zanny Minton Beddoes, Washington correspondent for The Economist magazine, who will deliver an address on the economic and social consequences of the euro.

Panel discussions will address two key issues: how the euro will affect supplier pricing and how travel agents and travelers can prepare for and benefit from the euro.

The Euro Pricing Panel includes Peter McCormack, vice president of sales and marketing for Trafalgar Tours, New York; Ravi Rao, president and chief executive officer of Jet Vacations International, El Segundo, Calif.; Gary Rosenthal, senior vice president of international lodging finance for Marriott International, and Ian Taylor, vice president of corporate foreign exchange dealing with Thomas Cook, Toronto.

Panelists discussing the Agency Challenge include Sandy Cutrone, president of European Connection, Roslyn, N.Y.; Charles Roumas, senior vice president of strategic planning for Travel One, Mount Laurel, N.J.; Ken Sause, president of Travelworks, Wallingford, Conn., and Tom Lacny, executive vice president of international development for World Travel Partners -BTI Americas, Northbrook, Ill.

The Euro Conference starts at 8: 30 a.m. and will conclude at 2 p.m. The conference includes lunch, during which Zanny Minton Beddoes will deliver her keynote address.

Attendance, which is free, is by invitation only and seating is limited. To obtain an invitation or to confirm attendance, call Arline Innis at (201) 902-2021 or send e-mail to [][1].