EFunds reports Q2 earnings rise

This amount represents a 10% improvement over net revenues of $106.1 million reported by the Company's three remaining operating segments during the second quarter of 2004. Overall, revenues declined 17% from the $140.7 million reported for the second quarter of 2004 as a result of the sale of the Company's ATM deployment business in November 2004.

Operating income during the quarter increased to $20.3 million, or 18% of net revenue, as compared to operating income of $12.9 million, or 9% of net revenue, reported in the second quarter of 2004. Second quarter 2005 net income was $14.1 million, or $0.30 per diluted share, compared to net income of $9.4 million, or $0.19 per diluted share, reported for the same quarter in 2004. Results for the second quarter ended June 30, 2005 include a business and occupancy state tax refund of $1.8 million.

For the six months ended June 30, 2005, eFunds reported net income of $27.3 million, or $0.56 per diluted share, compared with net income of $18.8 million, or $0.38 per diluted share, reported in the first six months of 2004. Reported operating income for the first half of 2005 was $37.1 million, or 16% of net revenue, as compared to $26.9 million, or 10% of net revenue, for the same period in the prior year. Net revenue from the Company's core operating segments increased 9% to $230.5 million, as compared to $211.9 million reported in the first six months of 2004. Overall, revenues declined 18% from the $281.6 million in revenue recorded in the first half of 2004, as a result of the sale of the ATM deployment business.

"We are pleased with our accomplishments so far in 2005. All of our businesses continue to show strong financial results and we have made notable progress against our strategic plan," said Paul F. Walsh, Chairman and Chief Executive Officer. "During the second quarter, new customer wins included Societe Generale and we acquired India Switch Company and National Check Protection Services and signed the agreement to purchase WildCard Systems. These transactions have enabled the Company to establish a framework for the expansion of our processing business to Europe, gain entry into the emerging payments market in India, and expand the breadth of our payments offerings in the U.S. We are excited about the opportunities ahead for eFunds for the balance of 2005 and beyond as we integrate WildCard Systems and our other recent acquisitions, and execute against our customer initiatives in the U.S. and Europe," stated Walsh.