EFunds explores merger opportunities; Q1 revenues and profits slip
09 May 2007 | 4061 views | 0
US-based electronic payments services firm eFunds says it is exploring potential merger opportunities after being approached by un-named parties. The news comes as the vendor reports a dip in net income and revenue in the first quarter.
In its Q1 results statement eFunds says it was approached by "parties who have expressed a desire to explore possible strategic alternatives" and has appointed Goldman Sachs and BlackRock as financial advisers "to assist it in exploring all of its options, including potential merger opportunities".
Arizona-based EFunds also reported net income of $10.5 million, or 22 cents a share, for the three months ended 31 March 2007, down marginally from $10.7 million, or 23 cents a share, a year ago.
Revenue in the first quarter fell to $134 million from $139.7 million last year due to contract roll-offs that occurred in mid-2006, says eFunds.
Looking ahead the vendor says for the full year 2007 it now expects revenue and earnings to trend toward the lower end of its previously forecasted ranges of $591 million to $613 million of total revenues, with diluted earnings per share between $1.30 and $1.42.