CheckFree profit falls

CheckFree profit falls

CheckFree, the US e-banking and payments vendor that is being acquired by Fiserv, has posted a fall in fiscal fourth quarter and full year net income after higher costs and a one-time charge ate into earnings.

Net income for the fourth quarter ending 30 June 2007 was $27.9m, compared to net income of $29.5m for Q4 last year. For fiscal 2007, the vendor posted net income of $124.4m, compared to net income of $127.3m for fiscal 2006.

The results include an $11m charge related to the value of one million performance-based warrants earned by a customer and a $12.4m deferred revenue adjustment related to CheckFree's own recent acquisitions.

Excluding these charges and other items, Georgia-based CheckFree says its Q4 profit was $48.1m compared to $36.6m in last year's Q4. For fiscal 2007, underlying net income was $172.3m, compared to underlying net income of $160.9m for fiscal 2006.

However CheckFree has posted increased revenues - for Q4 revenue rose to $276.7m from $224.9m a year ago. For the year the firm's full year revenue came in at 972.6m compared to 879.4m last year.

Pete Kight, CheckFree chairman and CEO, says: "The performance of our core business, and the integration of our newly acquired operations, all ended the year on track or slightly ahead."

Last week fintech vendor Fiserv said it was acquiring CheckFree in a $48.00 per share deal worth around $4.4 billion.

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