Credit Card Solutions announced Wednesday the release of version 3.5 of the P-Card Solution. This new version includes many changes such as the ability to allocate to multiple account codes on a single transaction by either percentage or dollar amount, addition of a Find Order Info tool for cardholders, the capability to identify orders as partially received, and the ability to search by customer-defined categories for statistical and transaction reports. The P-Card Solution can be used regardless of the card provider or database engine.Details
Americans are not convinced that security systems for e-commerce are more secure than just revealing your credit card number over the Internet. A new survey by San Jose-based World Research Inc. shows 70% of the 930 survey participants fear “Internet Pirates” despite the level of security employed. The survey showed that if consumers were comfortable with e-commerce they would most likely use the Internet for software purchases, airline tickets and music/video purchases, in that order. The study showed consumers do not like to buy things in cyberspace that they cannot touch and feel. About 16% of the respondents said they have spent over $500 using e-commerce.Details
Innovators who have made electronic commerce pay off for their companies will share stories of their successes and lessons learned during a special technology colloquium at ABAâs 1997 Bank Card Conference. The interactive dialogue is set for 2 to 4 pm, Sept. 21 at Californiaâs Long Beach Convention Center.
Emmy award-winning journalist, Charlie Rose, will guide the panelists and the audience through a discussion of Internet growth and opportunity. The speakers will tell how their companies are applying business strategies to the World Wide Web to increase profits, enhance customer service and grow lines of business.
Terrence Hsaio — director of business development at the UCLA Store, an online bookstore for students and professors, which is expanding to serve the entire U.S. academic market.
C. Lloyd Mahaffey — senior vice president of global marketing at VeriFone, which provides end-to-end payments solutions for financial, merchant and consumer markets.
Dudley Nigg — Vice president of online systems for Wells Fargo Bank, the first bank to give customers access to their account information through the internet.
Robert Olson — president and co-founder of Virtual Vineyards, an interactive shop on the Web that sells a variety of wine, food, gifts and information.
Rose is anchor and executive producer of Charlie Rose, a nightly interview program in national syndication. He will encourage the audience to challenge the panelists with their toughest questions and hardest problems.
The special session, sponsored by ABA and VeriFone, is included in the $745 conference registration prine. (Non-members pay $945.) The 1997 ABA Bank Card Conference runs Sept. 21-23. For registration information, call 800-338-0626.Details
Will your computers work when the calendar turns to the year 2000?
And will your vendors be able keep their commitments to you? Bankers are asking, and your answers may affect your ability to expand your business, manage your cash flow cycle to meet financial obligations or, for that matter, stay in business at all.
The seeds of the “Year 2000” issue were planted decades ago when programmers started expressing dates as two digits instead of four. When the apple drops at Times Square and calls an end to the year 1999, those two 9s will be replaced by two zeros, which would tell computers we’ve moved to the year 1900 instead of 2000.
Who and What Will Be Affected
That will disrupt just about every computer process that compares due dates and expiration dates. Just a few types of critical computer activities that could fail are accounts payable and accounts receivable systems, inventory systems, payroll and pension systems, and calendar and “tickler” programs.
For businesses of all sizes, that could mean missed cash-disbursement or cash collection deadlines, failure to make or receive deliveries, inability to compute interest on accounts, blown payroll schedules, inventory-replenishment scheduling — the list goes on. Timed heating and air conditioning systems may not turn on or off at the proper times or may not work at all. Security systems may be impacted. Voicemail and faxes may malfunction.
And it’s not enough to assure that your own systems are Year 2000-compliant. You want to know if your customers and vendors will be ready for the millennium, too. Will they be able to fulfill their obligations to their customers? Could their failure put a strain on your business?
This is no joke. Businesses of all sizes are spending billions of dollars to fix the problem — funds that have absolutely no economic return (except to enable the company to remain in business!). A recent article in the Wall Street Journal estimated that Americans alone will spend $71 billion to fix the problem, and then another $100 billion in liability-related lawsuits. The insurance industry is also grappling with how it will handle year 2000-related liability and losses.
Bankers Are Concerned
Bankers are concerned for two reasons. One is that they have their own computer software to remedy or replace. For example my company, Union Bank of California, one of the nation’s top 25 commercial banks, has to assess 22 million lines of code on its mainframe computers and millions more lines of code on mid-range platforms. We are also dependent upon a large number of vendors, whose failure to perform could affect our operations.
But beyond that, bankers like me are concerned about the Year 2000 impact on our customers. The problem requires tremendous planning to deal with the business issues, well beyond the systems issues. Will your cash-management operations be impacted? What liabilities will you have? This is bound to place a strain on many of our clients. Those who experience Year 2000-related disruptions may not be able repay loans and maintain their critical business accounts.
There is good reason for concern: in a recent survey, 65 percent of computer system managers said the Year 2000 problem poses a large risk to their businesses. Here are some of the questions your banker may be asking you soon, as part of the account review and loan-underwriting process:
— “Have you analyzed the impact? Do you know how many lines of programming code need to be reviewed?” Companies can spend three to six months researching a response to this question alone.
— The cost to fix old code can be as much as $2 per line. So the question arises, “How much will you have to spend to rewrite or purchase new Year 2000-compliant software?” “How will this expense affect your earnings?” “How will public companies determine if the expense is a material item; will the expense be disclosed?” “Can you afford to fix the problem?” “Do you have enough time to fix your systems and certify your vendors?” “And do you have the expertise?” Slightly more than two years remain until the calendar turns to “2000,” and, already, demand on COBOL programmers is heavy. “And what projects will you put on the back-burner in the meantime, in order to attack your Year 2000 problems?”
— “Can your suppliers and customers handle the millennium?”
— “Have you addressed the Year 2000 issues with your lawyers and insurance companies, to take precautionary measures?”
You could be in big trouble if you must answer “I don’t know” to any or all of the above.
Get Going Now
This is a serious concern right now, with experts warning that Year 2000 programs should be in place by December 31, 1998. Many large companies will need an entire year of testing to be assured that they are Year 2000-compliant. But according to one recent survey, only half of all American businesses have even started the process.
To get started, you’ll find most consulting firms and software companies are already addressing the Year 2000 issues. The Internet abounds with Year 2000 information and special interest groups. Check out [(http://www.year2000.com)] for starters. At Union Bank of California, we’ve produced special materials for our clients on preventing Year 2000 problems. (Copies of this free brochure are available from Union Bank of California, Commercial Marketing Services, G13-017, 445 S. Figueroa Street, Los Angeles, CA 90071 — Limit 2 copies per company.)
There are many facets to the Year 2000 problems, and there will be many approaches to resolving them. As with most other computer-related decisions, your success will be largely determined by how informed you are.
NationsBank and Blockbuster have mutually agreed to pull the plug on the ‘Blockbuster VISA’ program. Launched in March 1995, the program represented VISA’s first major, exclusive co-branded program, and was among the first major programs to offer monthly rebates. NationsBank projected three million consumers would sign-up in the first year following a major mail drop to qualified prospects among Blockbuster’s 43 million customer base. However after the first year NationsBank only approved 600,000 cardholders for the VISA only program. Like other no-annual-fee, value-added programs, NationsBank encountered pricing pressure last year due to the declining number of revolvers and began selectively charging annual fees to convenience type cardholders. This strategy has been largely unsuccessful in the industry. Under the program cardholders earned a 1% rebate on all purchases and a 5% rebate for purchases at Blockbuster Video, Blockbuster Music, Discovery Zone FunCenters and Paramount Parks. The rebates were issued with each monthly statement in the form of ‘Blockbuster Bucks’ redeemable for future Blockbuster purchases. The termination will take effect Aug. 31 with final rebates being issued with the September statements. NationsBank says it will replace the cards with other NationsBank cards as they expire.Details
ACE Cash Express Inc. (NASDAQ:AACE) today announced that net income rose 43 percent in the year ended June 30, 1997, on 27 percent higher revenue.
Net income rose to $4,766,000 from $3,326,000 in the year ended June 30, 1996. On a per share basis, net income increased to 73 cents from 52 cents. There were 6,563,000 weighted average number of shares and equivalents outstanding this past year and 6,380,000 in the prior year.
Revenues for the year rose to $87,392,000 from $68,959,000 primarily because of additional stores acquired and opened coupled with increased revenues from existing stores due to the company’s programs of introducing new products into their mix. Same store sales increased 6.3 percent for the 421 stores open two full years.
Earnings before interest, taxes, depreciation and amortization (EBITDA) increased 37 percent to $16,520,000 from $12,074,000 for the prior year.
Fourth Quarter Earnings Up Substantially
Net income for the fourth quarter increased 30 percent to $1,334,000 from $1,027,000 in the same quarter the prior year. This equaled 20 cents a share compared with 16 cents in the fourth quarter a year ago. There were 6,634,000 weighted average shares outstanding in this year’s quarter versus 6,459,000 a year ago.
Revenues for the quarter rose 12 percent to $22,055,000 from $19,757,000 in the fourth quarter of fiscal 1996.
EBITDA for the quarter increased 26 percent to $4,530,000 from $3,598,000 in the fourth quarter of fiscal 1996.
The company noted that the fourth quarter of both years included results from the acquisition of Check Express Inc., which occurred in February 1996, midway through its third quarter last year. Check Express was not included in the results during the first seven month of last fiscal year.
ACE posted increases in revenue, net income, EBITDA and same store sales while continuing to grow its network of stores, and at the same time leverage the fixed costs in its existing locations. The company recorded another strong year of unit growth during 1997. ACE opened 45 new units, mostly in existing markets, acquired 46 stores and closed 18 locations, for total unit growth of 73 stores or 13 percent.
Donald H. Neustadt, president and chief executive officer, stated: “Fiscal 1997 and fourth quarter results were very good for this stage in our development. These results confirm the company’s balanced approach to profitable growth through new store openings and acquisitions. Same store sales continue to increase, further suggesting our customers’ desire for an expanded array of financial services and transaction processing. Early into fiscal 1998, we are even more encouraged about the future prospects of developing new and expanded financial services for our network of company owned and franchised stores.”
ACE Cash Express Inc., headquartered in Irving, Texas, is one of the nation’s largest operators and franchisers of retail financial services stores. These centers offer convenient financial services, including check cashing, money order sales, MoneyGram wire transfer services, small consumer loans, electronic tax filing, and refund anticipation loan services, and bill payment services. ACE has a total network of more than 690 stores in 29 states and Washington, D.C., including over 600 company owned stores.
Safe Harbor Disclaimer
This release may contain certain forward-looking statements regarding the company’s expected performance for future periods, and actual results for such periods may materially differ. Such forward-looking statements involve risks and uncertainties, including risks of changing market conditions in the overall economy and the industry, consumer demand, the opening of new stores, the success of the company’s acquisition strategy and other factors detailed from time to time in the company’s annual and other reports filed with the Securities and Exchange Commission.
TELECONFERENCE August 20, 1997
An investor relations teleconference call will be held on Wednesday, Aug. 20, 1997 at 3:00 p.m. (Central) regarding the release of our fiscal 1997 year end and fourth quarter earnings. We invite you to participate in the conference call by dialing 800/374-1747. Don Neustadt, president/CEO, Ed McCarty, senior vice president, operations, and I will be presenting the information to you.
For your convenience, the teleconference call will be replayed in its entirety beginning at 6:00 p.m. on Aug. 20, 1997 and a week thereafter. If you wish to listen to a replay of this conference call, dial 800/642-1687, give your last name and use confirmation number 566078.
If you have any questions regarding this teleconference call, please contact Krista P. Baird at 972/550-5148.
ACE Cash Express Inc. and Subsidiaries
Consolidated Statements of Earnings
Three Months Ended June 30, Year Ended June 30,
1997 1996 1997 1996
(in thousands, except per share data)
Revenues $22,055 $19,757 $87,392 $68,959
benefits 5,878 5,764 24,844 20,786
Occupancy 3,436 3,116 13,728 11,284
Depreciation 905 763 3,346 2,752
Other 4,319 4,141 17,458 13,730
expenses 14,538 13,784 59,376 48,552
Region expenses 1,998 1,570 7,477 5,647
Headquarters expenses 1,490 1,133 6,106 4,744
Franchise expenses 279 277 1,046 458
and amortization 862 610 3,024 2,152
Interest expense, net 535 475 2,271 1,714
Other expenses 125 158 213 236
income taxes 2,228 1,750 7,879 5,456
Income taxes 894 723 3,113 2,130
Net income $ 1,334 $ 1,027 $ 4,766 $ 3,326
EBITDA $ 4,530 $ 3,598 $16,520 $12,074
per share $.20 $.16 $.73 $.52
number of common
outstanding 6,634 6,459 6,563 6,380
ACE Cash Express Inc. and Subsidiaries
Consolidated Balance Sheets
Cash and cash equivalents $ 55,494 $ 56,603
Accounts and notes receivable, net 7,459 4,891
Prepaid expenses 573 328
Inventories 2,052 2,084
Property and equipment, net 23,920 19,469
Covenants not to compete, net 2,775 2,372
Excess of purchase price over fair value of
assets acquired, net 27,505 23,124
Other assets 4,572 2,616
Net assets held for sale — 3,197
$ 124,350 $ 114,684
LIABILITIES AND SHAREHOLDERS’ EQUITY
Money order principal payable $ 41,281 $ 35,488
Revolving advances from money order supplier 7,166 21,157
Accounts payable and accrued liabilities 11,031 10,411
Notes payable 637 2,320
Senior secured notes payable 20,231 —
Term advances from money order supplier 8,209 16,969
Other liabilities 4,739 3,103
Preferred stock, $1 par value, 1,000,000
shares authorized, none issued and
outstanding — —
Common stock, $.01 per value, 10,000,000
shares authorized, 6,445,741 and 6,324,306
shares issued and outstanding 64 63
Additional paid-in capital 19,162 18,109
Retained earnings 11,830 7,064
Total shareholders’ equity 31,056 25,236
$ 124,350 $ 114,684
ACE Cash Express, Inc. and Subsidiaries
Supplemental Statistical Data
3 Months Ended Year Ended
June 30, June 30,
1997 1996 1997 1996 1995
Company Operating and
Stores in Operation:
period 601 530 544 452 343
Acquired 3 9 46 69 77
Opened 16 7 45 33 40
Closed (3) (2) (18) (10) (8)
End of period 617 544 617 544 452
Percentage increase in
revenue from prior
revenues(a) 3.1% 5.0% 5.5% 4.1% 2.9%
Total revenues(b) 1.3% (2.4%) 6.3% 4.7% 1.6%
(in thousands) $1,380 $ 964 $4,868 $3,435 $ 4,187
thousands) $ 801 $1,257 $10,766 $14,432 $14,000
FACE amount of checks
cashed (in millions) $674 $575 $2,621 $2,144 $1,567
FACE amount of money
(in millions) $456 $419 $1,812 $1,531 $1,213
FACE amount of money
orders sold as a
percentage of the fACE
amount of checks
cashed 67.7% 72.9% 69.1% 71.4% 77.4%
FACE amount of
avg check $286 $278 $291 $285 $284
Average fee per
check $6.68 $6.80 $6.78 $6.81 $6.79
No. of checks cashed
(in thousands) 2,360 2,064 9,020 7,535 5,516
No. of money orders
sold (in thousands) 3,447 3,185 13,608 11,835 9,334
FACE amt of returned
thousands) $2,700 $2,343 $10,399 $8,661 $6,206
(in thousands) 1,829 1,259 6,554 5,004 3,786
(in thousands) $ 871 $1,084 $3,845 $3,657 $2,420
as a percentage
checks 67.7% 53.7% 63.0% 57.8% 61.0%
Net write-offs as a
revenues 3.9% 5.5% 4.4% 5.3% 5.1%
as a percentage
of the fACE amt
of checks cashed .13% .19% .15% .17% .15%
(a) Change in revenues computed excluding electronic tax filing
and tax refund check cashing revenues in the periods compared.
(b) Calculated based on the change in revenues of all stores open
for the full periods compared.
Components of Revenues:
Three Months Ended Year Ended
June 30, June 30,
($ in thousands) ($ in thousands)
1997 1996 1997 1996 1995
Check fees $13,908 $12,154 $54,529 $44,664 $33,008
Tax check fees 1,739 1,875 8,306 6,663 4,480
Money transfer services 1,455 1,672 5,749 4,740 1,775
Loan fees and interest 1,661 910 5,703 2,462 597
Money order sales 693 654 2,757 2,413 2,089
New customer fees 515 381 2,051 1,338 806
Bill payment services 625 381 2,197 1,320 819
Food stamp distribution 157 131 752 789 1,684
Franchise revenues 497 388 1,398 633 —
Electronic tax filings 96 89 395 402 533
Other fees 709 1,122 3,555 3,535 1,999
Total revenue $22,055 $19,757 $87,392 $68,959 $47,790
Three Months Ended Year Ended
June 30, June 30,
(Percentage of Revenues) (Percentage of Revenues)
1997 1996 1997 1996 1995
Check fees 63.1% 61.5 62.4% 64.8% 69.1%
Tax check fees 7.9 9.5 9.5 9.7 9.4
services 6.6 8.5 6.6 6.9 3.7
and interest 7.5 4.6 6.5 3.6 1.2
Money order sales 3.1 3.3 3.2 3.5 4.4
New customer fees 2.3 1.9 2.3 1.9 1.7
services 2.8 1.9 2.5 1.9 1.7
distribution 0.7 0.7 0.9 1.1 3.5
Franchise revenues 2.3 2.0 1.6 0.9 —
filing 0.5 0.4 0.4 0.6 1.1
Other fees 3.2 5.7 4.1 5.1 4.2
Total revenue 100.0% 100.0 100.0% 100.0% 100.0%Details
Discover Card Master Trust I’s $750 million floating rate class A credit card pass-through certificates, series 1997-1, are expected to be rated ‘AAA’ by Fitch. The corresponding $39.5 million floating rate class B certificates are expected to be rated ‘A+’. With a weighted average life of five years, the securities represent the trust’s first issuance of the year and first since the merger with Morgan Stanley.
Series 1997-1 ratings reflect the high quality of the receivables generated by Discover Card accountholders, the 12.5% available subordinated amount supporting class A, the 7.5% cash collateral account available for class B, the sound legal and cash flow structures, and the excellent servicing provided by Greenwood Trust Co.
Economic and credit stress scenarios were applied to the collateral pool to determine the appropriate levels of credit enhancement for the series 1997- 1 certificates. One of the more severe ‘AAA’ scenarios involved decreasing yield by more than 30%, cutting payment rates by 40% and increasing defaults to 31%. The less stringent ‘A+’ stress decreased yield by 25%, payment rates by 30% and increased defaults to 23%. Under the transaction’s current enhancement, the bonds could withstand these scenarios and still make full payments of principal and interest to class A and class B investors.
Investors are protected from a deterioration in asset quality, seller insolvency or servicer default by early amortization triggers. If certain adverse events occur, an accelerated payout of investor principal will begin possibly earlier than expected. During such an amortization event, finance charge collections normally allocated to the seller will become available to cover trust expenses, due to a structural feature that fixes the finance charge allocation based upon pre-amortization invested amounts. Allocating finance charge collections in this manner allows funds, otherwise designated to the seller, to flow through to the trust. Greenwood has the option to allocate collections on a floating basis, which would require enhancement levels to be increased to 17.5% for class A and 12.5% for class B.
Investors holding class A certificates will receive monthly interest payments of one-month LIBOR plus 0.09% throughout the revolving and accumulation periods and on the expected final payment date, provided an early amortization event does not occur. Interest will be paid monthly to class B certificateholders at one-month LIBOR plus 0.27%. Following a variable accumulation period, principal is expected to be paid to class A on Aug. 15, 2002 and to class B one month later. The termination date is Feb. 16, 2005. As a part of Group One, series 1997-1 will share excess finance charge and principal collections with 13 other Group One series.Details
Mercantec, Inc. [(http://www.mercantec.com)], the market leader in open retail electronic commerce software, and ICVERIFY, Inc., the leading provider of electronic payment software for secure, real-time credit card processing over the Internet, today announced a strategic marketing partnership aimed at offering retailers the opportunity to launch a Web store, complete with real-time credit card processing, in time for the holiday shopping season.
Mercantec SoftCart(TM) allows a merchant to add commerce to an existing Web site or build a virtual store from scratch, take an order over the Internet, and link to the merchant’s existing payment, inventory control and order entry systems. ICVERIFY’s on-line payment system communicates to more than 100 different credit card processing networks, allowing merchants to maintain their existing banking relationships and secure the best possible discount rates.
Mercantec’s ICVERIFY Connect(TM) provides seamless integration between SoftCart and ICVERIFY, thereby giving a Web merchant the ability to authorize credit card orders in real-time and build a secure database of all transactions for tracking and reporting purposes. The combination of SoftCart, ICVERIFY Connect and ICVERIFY gives merchants a fully-integrated solution to build and run an effective store on the Web.
“Mercantec SoftCart is a strong complement to ICVERIFY’s secure, on-line processing software and will be a benefit to any merchant who has — or is planning to open — a virtual store,” said Karen Tate, manager, business development at ICVERIFY. “The combined strengths of ICVERIFY and Mercantec SoftCart, integrated through Mercantec’s ICVERIFY Connect, offer merchants a solid, secure system for taking orders on the Web.”
As an incentive for merchants setting up Web stores using Mercantec SoftCart and ICVERIFY, Mercantec is offering a free ICVERIFY Connect module, a $300 value, until October 31, 1997. ICVERIFY Connect can be downloaded for free at [http://www.mercantec.com.] Merchants who wish to receive more information or order Mercantec SoftCart should send e-mail to [ICV@mercantec.com] or call (630)305-3200×2.
Ascent Solutions, Inc., a distributor of data compression software, is currently using Mercantec SoftCart and implementing Mercantec’s ICVERIFY Connect module at its Web site at [http://www.asizip.com.] Soon, shoppers will be able to purchase software with a credit card and download it immediately from the Ascent Solutions site.
“We chose ICVERIFY for real-time credit card authorization because the company does not charge a transaction fee per use, unlike other companies,” said Brad Churby, Webmaster at Ascent Solutions. “In addition, ICVERIFY Connect allows us to easily integrate on-line orders with our accounting software, so it saves our accounting staff time and allows us to have more control over the process.”
“Most Mercantec merchants begin generating revenue from their on-line stores within 10 days after they have installed SoftCart,” said Mary Beth Pandolfo, marketing communications manager at Mercantec, Inc. “Through Mercantec’s partnership with ICVERIFY, we are making it easy for retailers to open a Web store and take credit card orders on-line in time to take advantage of the holiday shopping season.”
About Mercantec, Inc.
Mercantec, Inc., offers a complete retail electronic commerce solution for marketing and selling goods and services on the World Wide Web. Mercantec sells its products through a worldwide network of Internet Service Providers (ISPs) and Web hosting service providers, Web consultants, software developers, integrators and OEMs. Mercantec has sold more than 2,700 Mercantec SoftCart(TM) licenses and has recently been selected by Lockheed Martin to complete its electronic commerce offering to RETEX — The Retail Technology Buying Consortium, a not-for-profit cooperative of 1,500 retailers. Mercantec SoftCart(TM) software utilizes StateTrack(TM) technology to provide 100 percent shopper privacy.
Mercantec SoftCart supports all known Web servers including Microsoft, Netscape, Spyglass, and APACHE. Mercantec SoftCart runs on Windows NT, Windows 95 and the most popular UNIX platforms including Sun Solaris, SGI IRIX, Linux, SCO UNIX, Free BSD and BSDI.
Mercantec was founded in 1995 and is headquartered in Lisle, Ill. To learn more about Mercantec, visit the company Web site at [http://www.mercantec.com.]
About ICVERIFY Inc.
ICVERIFY Inc., a privately held, venture capital-funded corporation with U.S. headquarters in Oakland, Calif., and European headquarters in Munich, Germany, is the leading software solution for authorizing credit, purchase, debit/ATM card and check guarantee transactions and is used by over 250,000 physical and virtual points of sale. ICVERIFY supports more than 100 major card processing networks – representing 99% of all merchant banks – and has certifications covering the retail, restaurant, hotel, mail/telephone order, auto rental, travel and gasoline industries. The software processes Visa, MasterCard, American Express, Discover, Diners Club, Carte Blanche, JCB and private-label credit cards, with automatic draft capture to the merchant’s bank account. ICVERIFY’s functionality includes the ability to support multiple merchant environments. Its reporting and query features enable the merchant to track and to edit transactions efficiently and effectively. ICVERIFY can be reached through the Internet at or by calling 800-666-5777.
Ramtron International has been selected by Cubic Corp. to provide FRAM memory technology for use in Cubicâs âcontactless smart cardsâ as a one-card-fits-all media for use in major cities around the globe beginning early in 1998. Earlier this year, Cubic completed the production design of its GO CARD, a credit card size ISO 7816 compliant carrier. Cubic fare collection systems are in operation in major cities on five continents. These systems process over 20 million passengers a day and provide secure revenue accounting in excess of $3 billion a year.Details