Carreker plunges into the red

Carreker plunges into the red

Financial services payments software vendor Carreker Corporation is reporting a fourth quarter net loss of $1.1m, compared to net income of $1.4m a year ago, and is warning that revenues will remain flat into the first quarter of 2005.

The company said last week that it intended to cut its workforce and take a fourth quarter charge of $700,000 against the cost of redundancies. The restructuring charge reduced Q4 operating results from previous expectations.

Total revenue for the fourth quarter 2004 fell to $28.9m, compared to $33.1m a year ago.

For the full year ending 31 January 2005 Carreker recorded a $1.2m net loss, compared to 2003 net income of $3.7m. Revenue was down to $118.9m in 2004 from $128.9m in 2003.

The Dallas-based vendor lost its president and chief operating officer Mike Hanson in December after reporting depressed revenue and operating income for the third quarter 2004 compared to the previous year.

Looking ahead Carreker says revenue for Q1 2005 will be in line with the fourth quarter 2004, while operating income is expected to be approximately break-even or negative. But the vendor says expected increases in contract sales along with the cost reduction efforts are expected to push the firm back into the black in 2005.

Denny Carreker, chairman and CEO, Carreker Corporation, says: "We remain committed to our R&D effort, which will result in the release of several major new products in the first half of 2005."

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