eFunds Corporation (NYSE: EFD), the Company that delivers innovative payment processing and information intelligence solutions, today reported net revenue of $141 million for the quarter ended December 31, 2006.
This amount represents an increase of 2% over revenue of $138 million reported in the fourth quarter of 2005. Reported operating income increased 70% to $31 million, or 22% of net revenue, compared to $18 million, or 13% of net revenue, reported in the prior year quarter. Fourth quarter net income increased 72% to $20 million, or $0.41 per diluted share, compared to $11 million, or $0.24 per diluted share, reported in the fourth quarter of 2005.
For the year ended December 31, 2006, the Company reported net revenue of $552 million, an increase of 10% compared to net revenue of $502 million reported in 2005. Reported operating income for the full year 2006 was $83 million, or 15% of net revenue, compared to $67 million, or 13% of net revenue reported in the prior year. Net income for the year ended December 31, 2006 was $55 million, or $1.15 per diluted share, compared to net income of $50 million, or $1.06 per diluted share, report in 2005.
"In 2006, we continued to focus on transforming eFunds into a global, customer-centric, innovative solutions company. This focus included improving our financial and operational performance, realigning our organizational structure including the recruitment of certain key executives, investing in our technical infrastructure and product development, and integrating our 2005 acquisition of WildCard Systems. We believe we have made significant progress over the course of the year towards building a strong platform for continued growth in 2007 and beyond," stated Paul Walsh, Chairman and CEO.
Forward Looking Statements
The Company reported that it expects full-year net revenues in 2007 to be between $591 million and $613 million, an increase of 7% - 11% over net revenue reported in 2006. Diluted earnings per share in 2007 are expected to be between $1.30 and $1.42, reflecting an increase of 13% - 23% over the diluted earnings per share of $1.15 reported in 2006.
The foregoing expectations reflect the following assumptions:
- An effective tax rate of approximately 35 percent for 2007;
- Cash outlays for capital expenditures and product development activities will be somewhat higher than the amounts disbursed in 2006.
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