eFunds Corporation (NYSE: EFD), the Company that delivers innovative payment processing and information intelligence solutions, today reported first quarter net revenue of $139.7 million.
This amount represents a 22% improvement over the net revenues of $114.2 million reported during the first quarter of 2005. Reported operating income was $15.2 million, or 11% of net revenue, compared to $15.0 million, or 13% of net revenue reported in prior year quarter. The Company's operating income in the first quarter of 2006 reflects a $3 million operating loss by the Prepaid Solutions business that the Company acquired in July 2005 due to the seasonality of that business and infrastructure investments made in advance of integration activities associated with this business. First quarter net income was $10.7 million, or $0.23 per diluted share, compared to net income of $11.9 million, or $0.23 per diluted share, reported for the same quarter in 2005.
The Company implemented SFAS 123R using the modified retrospective approach during the quarter. As such, compensation costs have been revised in the prior year quarter to reflect stock based compensation expense that historically would have been presented in proforma footnote disclosures in the Company's quarterly filings on Form 10-Q.
"We are pleased with the first quarter financial results, which are consistent with our internal expectations," stated Paul Walsh, Chairman and CEO. "Our EFT Processing and Risk Management businesses delivered double digit revenue growth on a quarter over quarter basis. We are continuing our efforts to integrate our Prepaid Solutions business more fully into our other operations. Our efforts to more closely align our outsourcing capabilities with our core risk management and transaction processing businesses are also progressing," stated Walsh.Download the document now 40.1 kb (Adobe Acrobat Document)