Fiserv beats analysts' estimates

GAAP revenue in the first quarter was $1.11 billion compared with $1.05 billion in the first quarter of 2011. Adjusted revenue was $1.03 billion in the first quarter compared with $982 million in 2011, an increase of 5 percent.

GAAP earnings per share from continuing operations for the first quarter was $0.95 compared with $0.77 in the first quarter of 2011. Adjusted earnings per share from continuing operations in the first quarter increased 18 percent to $1.20 compared with $1.02 in the comparable quarter of 2011.

"We are off to a great start in 2012 with above plan performance for revenue and earnings per share in the quarter," said Jeffery Yabuki, President and Chief Executive Officer of Fiserv. "There is continuing evidence that our broad range of technology solutions will support the needs of the evolving financial services market."

First Quarter 2012

-- Adjusted revenue grew 5 percent in the quarter to $1.03 billion compared with $982 million in the prior year period.

-- Adjusted internal revenue growth in the quarter was 4 percent for the total company, including 3 percent in the Payments segment and 4 percent in the Financial segment.

-- Adjusted operating margin increased 40 basis points in the quarter to 28.7 percent compared with the prior year period.

-- Adjusted earnings per share increased 18 percent to $1.20 in the first quarter compared with $1.02 in the prior year period.

-- Free cash flow for the quarter was $183 million compared with $244 million in the prior year period.

-- The company repurchased 3.7 million shares for $245 million in the first quarter and had approximately 11 million shares remaining under its existing share repurchase authorizations as of March 31, 2012.

-- The company signed 78 electronic bill payment clients, 59 debit clients and 93 person-to-person (P2P) clients in the quarter.

-- During the quarter, 148 clients committed to offer Mobiliti(R) from Fiserv. To date, the company has signed nearly 1,000 financial institutions to its mobile banking solutions.

-- The company announced that it will combine the Popmoney(R) and ZashPay(R) payment networks, and brand the enhanced service as Popmoney. The resulting P2P network includes nearly 1,500 financial institutions reaching more than 35 million consumers through existing online and mobile banking relationships.

-- On April 16, 2012, Cliff Skelton joined the company as its Executive Vice President and Chief Information Officer. Mr. Skelton brings extensive technology and financial services experience to Fiserv, including senior leadership roles at Ally Financial Corporation and Bank of America.

-- A number of new and expanded client relationships occurred in the quarter including: -- AmericanWest Bank, headquartered in Spokane, Wash., with $2.3 billion in assets, expanded its relationship with Fiserv by selecting CheckFree(R) RXP(R) and CheckFree Small Business for bill payment. AmericanWest Bank also uses Precision(R) for account processing, Integrated Teller for real-time access to account information, Director(TM) for document imaging and Business Analytics.

-- BridgePortfolio, Inc., a leading provider of back-office support for investment advisors headquartered in Chicago, Ill., agreed to expand its relationship to use Wealth Management Solutions from Fiserv. BridgePortfolio will leverage Portfolio Management & Trading Solutions, Messaging Services, Financial Advisor Workbench, and OneView(SM) from Fiserv to offer its clients a broad range of tools to service customers for account opening, trading, rebalancing and billing.

-- CFE Federal Credit Union, headquartered in Lake Mary, Fla., with $1.3 billion in assets, selected the Acumen(R) account processing solution from Fiserv. CFE FCU will also implement WireXchange(R) for wire funds processing, Prologue(TM) Financial Accounting Services, Nautilus(R) for enterprise content management and Next Multi-Channel Marketing to manage targeted product offers and service messages.

-- Chemung Canal Trust Company, the oldest, active independent bank in New York State, operating 29 branch offices in the Southern Tier and the Capital District of New York and the Northern Tier of Pennsylvania, with $1.2 billion in assets, will implement debit processing, the ACCEL/Exchange(R) PIN-debit Network, ATM Processing and UChoose Rewards(R) from Fiserv. The bank also leverages the Premier(R) account processing platform, EasyLender(R) Mortgage, Retail Online(TM) and item processing solutions from Fiserv.

-- CSE Federal Credit Union, based in Lake Charles, La., with $300 million in assets, selected the Portico(R) account processing platform from Fiserv. The credit union also selected Mobiliti for mobile banking, Virtual Branch(R) for online banking and lending, AccountCreate(SM) for online account opening, and Wisdom(TM) for accounting.

-- Fidelity Bank, a full-service financial institution headquartered in Fuquay-Varina, N.C., with assets of approximately $1.4 billion, selected Fiserv for an integrated suite of solutions. The bank will implement the Precision(R) account processing platform, CheckFree RXP and CheckFree Small Business for bill payment, the ACCEL/Exchange PIN-debit network and debit processing from Fiserv.

-- First National Bank of Pennsylvania, a $9.6 billion institution, selected Mobiliti from Fiserv for mobile banking and payments. A long-time Fiserv client on the Premier account processing platform, the bank will implement Mobiliti to enhance its robust multi-channel banking and payments experience. The bank already relies on Fiserv for a variety of solutions including analytics and intelligence, source capture, online banking, bill payment and P2P payments.

-- International Cash Exchange, LLC (ICE), one of the nation's leading providers of reloadable prepaid cards serving the needs of the underbanked consumer, selected Fiserv to implement Prepaid Processing Services and Card Production Services with prepaid debit cards issued by a regional bank client of Fiserv. ICE prepaid cards are sold at over 500 check cashing locations across the United States. Fiserv is providing a full suite of prepaid services including complete program management services for card fulfillment, risk management controls and cardholder services.

-- Panin Bank, headquartered in Jakarta, Indonesia with more than $12 billion in assets, expanded its relationship with Fiserv. An existing Fiserv client using the Signature(R) account processing solution, the bank selected Corillian Online(R), Mobiliti, Aperio(TM) and Teller for an integrated digital channels experience. The bank will also implement card management solutions from Fiserv.

-- USAA Federal Savings Bank, headquartered in San Antonio and the 29th largest bank in the United States, extended its relationship with Fiserv by renewing its bill payment agreement and expanding it to include expedited payment capabilities.

-- Winchester Savings Bank, headquartered in Winchester, Mass. with $532 million in assets, selected Fiserv for a full-service banking solution based on the Cleartouch(R) account processing solution. The bank will also implement Prologue for general ledger and financial management, EasyLender for loan origination, item processing solutions for check processing, and debit and credit card management services.

Outlook for 2012

Fiserv continues to expect 2012 adjusted revenue growth to be in a range of 4 to 6 percent and adjusted internal revenue growth to be in a range of 3.0 to 4.5 percent. The company also expects 2012 adjusted earnings per share to be in a range of $5.04 to $5.20, which represents growth of 10 to 14 percent over $4.58 in 2011.

"We're on track to achieve our full-year guidance, and continue to believe that we will have stronger results in the second half of the year," said Yabuki.