Total revenue for the first quarter of 2005 was $28.2 million as compared to revenue of $28.9 million in the fourth quarter of 2004. Operating income for the first quarter of 2005 was $234,000 as compared to an operating loss of $1.3 million in the fourth quarter of 2004. Net income for the first quarter of 2005 was $498,000, or $0.02 per diluted share as compared to a net loss of $1.1 million, or ($0.04) per diluted share, for the fourth quarter of 2004.


"While revenue was slightly lower than the fourth quarter of 2004, cost management efforts helped improve margins thus resulting in profitability for the quarter," said J. D. (Denny) Carreker, Chairman and Chief Executive Officer of Carreker Corporation. "We are rolling out several new products during the first half of the year and anticipate that as they gain momentum, our revenue will strengthen. Our clients continue to benefit from our commitment to research and development as these new products assist them with their evolving needs in the converging payments landscape."

Business Outlook
The Company anticipates revenue growth in 2005 due to sales of new products and increased consulting opportunities. The Company continues to focus on cost management efforts to improve 2005 profitability and increase shareholder value. Revenue and operating income for the second quarter of 2005 are expected to improve over first quarter 2005 levels.