FIS Announces Q1 2011 Results

May 03, 2011 07:00 AM Eastern Daylight Time 

FIS Announces First Quarter Results

• Revenue of $1.38 billion, up 12.0%; organic growth of 6.2%
• EPS of $0.45, as adjusted, up 9.8%
• Free cash flow of $189 million

JACKSONVILLE, Fla.--(BUSINESS WIRE)--FIS^™ (NYSE:FIS), the world’s largest global provider dedicated to banking and payments technologies, today reported financial results for the quarter ended March 31, 2011.

“Excellent growth in Financial Solutions and International Solutions drove the strong top-line performance”

GAAP Results

Revenue from continuing operations increased 12.0% to $1.38 billion in the first quarter of 2011, compared to $1.24 billion in the first quarter of 2010. GAAP net earnings from continuing operations attributable to common stockholders totaled $96.1 million, or $0.31 per diluted share, in the first quarter of 2011, compared to $97.1 million, or $0.26 per diluted share, in the prior year quarter.

Non-GAAP Results

Adjusted revenue growth was 11.2% in the first quarter of 2011, and organic revenue growth was 6.2%. EBITDA increased 0.9% to $368.3 million in the first quarter of 2011, compared to adjusted EBITDA of $365.1 million in the first quarter of 2010. EBITDA margin was 26.6% in the first quarter of 2011, compared to 29.4%, as adjusted, in the prior year quarter. The current year quarter reflects strong growth in lower margin businesses, including professional services and Capco, as well as approximately $7.0 million of integration and severance costs that are included in the current period. In addition, the Company incurred a loss of approximately $13.0 million associated with the Sunrise prepaid card platform in the first quarter of 2011, as described later in this press release.

Adjusted net earnings from continuing operations totaled $137.7 million, or $0.45 per diluted share, compared to $156.5 million, or $0.41 per diluted share, in the first quarter of 2010. Integration and severance costs and the Sunrise prepaid loss reduced first quarter 2011 adjusted earnings by approximately $0.01 and $0.03 per share, respectively. Free cash flow totaled $188.6 million compared to free cash flow of $241.3 million, as adjusted, in the 2010 quarter. Definitions of non-GAAP financial measures and reconciliations of non-GAAP measures to related GAAP measures are provided in subsequent sections of the press release narrative and supplemental schedules.

“Excellent growth in Financial Solutions and International Solutions drove the strong top-line performance,” stated Frank Martire, president and chief executive officer of FIS. “We are very pleased with the progress we are making in driving higher organic revenue growth, which we believe will drive sustainable earnings growth and value for our shareholders.”

Acquisitions and Discontinued Operations

On December 2, 2010, FIS completed the acquisition of Capco. Operating results from Capco are reported prospectively from the date of acquisition and are included in the Financial Solutions and International Solutions segments, based on geography, while non-allocated overhead is included in the Corporate segment.

During the third quarter of 2010, FIS determined that it will pursue strategic alternatives for its item processing and remittance services subsidiary in Brazil, Fidelity National Participacoes Ltda., and intensify its focus on expanding its card processing operation in the region. The results of Fidelity National Participacoes Ltda. are reported as discontinued operations for all periods presented, (revenues and expenses from discontinued operations are collapsed and classified as a separate line item on the income statement).

Segment Information

The following is a discussion of first quarter results by segment:

• Financial Solutions:

First quarter 2011 Financial Solutions revenue increased 13.6% to $503.7 million compared to $443.5 million in the 2010 quarter, driven by growth in professional services, increased processing revenues, including new client implementations, and the addition of Capco’s North American operations. Financial Solutions revenue increased 7.1% on an organic basis. Financial Solutions EBITDA increased 4.6% to $195.1 million compared to $186.5 million in the first quarter of 2010. The EBITDA margin was 38.7% compared to 42.1% in the prior year quarter, reflecting continuing strong growth in professional services and the addition of Capco.

• Payment Solutions:

First quarter 2011 Payment Solutions revenue totaled $614.5 million compared to $618.8 million in the 2010 quarter as growth in electronic payment services, card production and output solutions was offset by lower item processing and retail check activity. Additionally, consolidation of our merchant processing platforms resulted in utilization of the net method to account for certain merchant interchange fees. Payment Solutions revenue increased 4.5%, excluding the check related businesses, which totaled $113.0 million and $122.2 million in the first quarters of 2011 and 2010, respectively, and the $16.6 million unfavorable impact of the gross-to-net accounting mentioned above. Payment Solutions EBITDA was $219.3 million compared to $229.5 million in the 2010 quarter, and the EBITDA margin was 35.7% compared to 37.1% in the prior year quarter, reflecting growth in lower margin businesses, reduced license revenue, and approximately $4.0 million of integration and severance costs that are included in the current period.

• International Solutions:

International Solutions revenue increased 48.6% to $268.1 million compared to $180.4 million in the 2010 quarter. The growth was driven by increased payment volumes in Brazil, growth in professional services, higher license revenue and the addition of Capco’s international operations. International Solutions revenue increased 27.5% on an organic basis. International Solutions EBITDA increased 44.2% to $48.9 million compared to $33.9 million in the first quarter of 2010. The EBITDA margin was 18.2% compared to 18.8% in the prior year quarter, reflecting a higher proportion of professional services, including Capco, in the current year.

• Corporate/Other:

Corporate expense totaled $95.0 million in the first quarter 2011, compared to $84.8 million in the prior year quarter. Included in the current year quarter is a loss of approximately $13.0 million related to the Sunrise prepaid card platform, as described below.

Net interest expense totaled $68.0 million in the first quarter of 2011 compared to $28.2 million in the 2010 quarter. The increase was due primarily to the recapitalization completed in the third quarter of 2010.

The effective tax rate in the first quarter of 2011 was 35% compared to 37% in the first quarter of 2010.

Balance Sheet and Cash Flow

Cash and cash equivalents totaled $384.1 million as of March 31, 2011. Debt outstanding declined to approximately $5.0 billion as of March 31, 2011. Capital expenditures totaled $71.6 million in the first quarter of 2011, compared to $58.2 million in capital expenditures in the prior year quarter.

Free cash flow totaled $188.6 million in the first quarter of 2011 compared to adjusted free cash flow of $241.3 million in the 2010 quarter. The decline in free cash flow was primarily due to the timing of interest payments associated with the debt incurred as part of the August 2010 leveraged recapitalization and annual incentive payments.

Sunrise Loss

FIS incurred a loss of approximately $13.0 million, or $0.03 per share, during the first quarter of 2011 related to unauthorized activities involving one client and 22 prepaid card accounts on its Sunrise platform. The Company has identified that 7,170 prepaid accounts may have been at risk and that three individual cardholders’ non-public information may have been disclosed as a result of the unauthorized activities. FIS worked with the impacted clients to take appropriate action, including blocking and reissuing cards for the affected accounts. The Company has taken steps to further enhance security and continues to work with Federal law enforcement officials on this matter.

2011 Outlook

FIS reiterated its full year outlook for 2011 as follows:

• Revenue growth of 9% to 11% (4% to 6% organic revenue growth);
• EBITDA growth of 7% to 9%, reflecting a higher proportion of professional services revenue;
• Adjusted net earnings per share from continuing operations of $2.24 to $2.34;
• Free cash flow is expected to approximate adjusted net earnings in 2011.

Conference Call and Webcast

FIS will host a call with investors and analysts to discuss first quarter 2011 results on Tuesday, May 3, 2011 beginning at 8:30 a.m. Eastern standard time. To register for the live event and to access a supplemental slide presentation, go to the Investor Relations section at www.fisglobal.com and click on “News and Events.” A webcast replay will be available on FIS’ Investor Relations website, and a telephone replay will be available through May 17, 2011, by dialing 800-475-6701 (USA) or 320-365-3844 (International). The access code will be 197171. To access a PDF version of this release and accompanying financial tables, go to http://www.investor.fisglobal.com.

ViVOtech Wins 2011 Monkey Award for NFC Project

May 02, 2011 11:02 AM Eastern Daylight Time 

ViVOtech Wins NFC Award For Bank of Kuwait, Zain, VISA Project

5 Out of 10 Contactless Monkey Award Winners Use ViVOtech Technology

Smart Card Alliance 2011

CHICAGO--(BUSINESS WIRE)--ViVOtech, the near field communication (NFC) software and systems company, today announced it has won the 2011 Contactless Monkey Award in the category of On High Street, for its NFC project with the National Bank of Kuwait and Kuwait's Mobile Telecommunications Co., known as Zain, using VISA EMV compliant payment cards, coupons and promotions.

“The payments, loyalty, marketing and merchandising industry has just begun a total transformation as mobile NFC technology moves from test projects to full scale commercial rollout this year and next”

ViVOtech’s award winning project for the National Bank of Kuwait introduced a unique prepaid card distribution application that allows consumers to tap their NFC enabled phone on an NFC enabled smart poster in a mall to download a prepaid VISA card in just a minute or two, said Mohammed Khan, ViVOtech founder and president. This patent pending NFC application utilizing ViVOtech software enables issuers to widely distribute prepaid, gift, and loyalty cards to consumers’ NFC mobile phones from any public place.

In addition, using ViVOtech technology Zapa Technology won the High Throughput Beverage Award for its project with Insomnia Coffee in Ireland, U.K.-based EAT won the High Throughput Food and the VISA Pay/Wave Awards; and Business Leader of the Year was given to Will Judge, head of future ticketing at Transport for London.

“The payments, loyalty, marketing and merchandising industry has just begun a total transformation as mobile NFC technology moves from test projects to full scale commercial rollout this year and next,” said Khan. “The application we introduced in Kuwait was just the latest in a history of NFC firsts at ViVOtech.”

The Contactless Monkey Awards are presented to companies, organizations and retailers that have done the most to embrace and implement contactless technology into their day-to-day operating practices. The competition was open to all implemented contactless applications within the relevant sectors, regardless of geographic region or size of corporation.

The On High Street award is given to the company or retailer that has done the most to incorporate contactless into their service and payment structure and had the most success from doing so. Other finalists for the On High Street award included Clinton Cards in the U.K.; an NFC trial in Sitges, Spain by La Caixa and Telefonica O2; and an NFC loyalty solution for Allied Irish Bank by Zapa Technology.

The fourth edition of the Contactless Monkey Award, organized annually by Contactless Intelligence, saw a record number of entries, underlining the growing significance of NFC payment, loyalty, marketing and merchandizing applications.

About ViVOtech

ViVOtech, the near field communication (NFC) software and systems company, enables rich mobile commerce solutions for in-store payment, loyalty, marketing, and merchandising. Merchant, payment, mobile, web and advertising companies use ViVOtech solutions to enhance customer experience and grow their business. ViVOtech’s NFC software and systems are the broadest, most tested and deployed worldwide. Founded in 2001, Silicon Valley-based ViVOtech provides the key building blocks of the NFC ecosystem: smart applications, wallet and provisioning software, and point of sale systems. ViVOtech’s investors include Alloy Ventures, Citigroup, Draper Fisher Jurveston, First Data Corporation, Motorola Ventures, Nokia Growth Partners, NCR, NXP and Sprint. Join the NFC revolution at http://www.ViVOtech.com.

Contacts

for ViVOtech
Kristin Miller, +1 719 634 8292
kmiller@sspr.com

Related articles

• The 2011 Contactless Monkey Award Finalists - In The High Street (krowne.wordpress.com)

MasterCard Reports Q1 2011 Results...Profit Rises

May 03, 2011 08:00 AM Eastern Daylight Time 

MasterCard Incorporated Reports First-Quarter 2011 Financial Results

• First-quarter net income of $562 million, or $4.29 per diluted share
• First-quarter net revenue increase of 14.8%, to $1.5 billion
• First-quarter gross dollar volume up 12.8% and purchase volume up 12.9%
• First-quarter operating income increase of 19.4%

PURCHASE, N.Y.--(BUSINESS WIRE)--MasterCard Incorporated (NYSE: MA) today announced financial results for the first quarter 2011. The company reported net income of $562 million, up 23.6%, and earnings per diluted share of $4.29, up 24.0%, in each case versus the year-ago period.

Net revenue for the first quarter of 2011 was $1.5 billion, a 14.8% increase versus the same period in 2010. Foreign currency fluctuations had essentially no impact on net revenue growth which was driven by the impact of the following:

• A 12.8% increase in gross dollar volume on a local currency basis, to $728 billion;
• An increase in cross-border volumes of 18.5%; and
• Pricing changes of approximately 5 percentage points.

These factors were partially offset by an increase in rebates and incentives primarily due to new and renewed agreements and increased volumes.

Worldwide purchase volume during the quarter was up 12.9% on a local currency basis versus the first quarter of 2010, to $545 billion. The number of processed transactions increased 11.1% compared to the same period in 2010, to 6.0 billion. As of March 31, 2011, the company’s customers had issued 1.7 billion MasterCard and Maestro-branded cards.

“We had a strong start to 2011 despite the hardships experienced by many consumers and businesses due to natural disasters and political turmoil in several markets. Our solid volume and processed transaction growth helped to drive a double-digit revenue increase. This growth is reflective of the strong fundamentals and globality of our business,” said Ajay Banga, MasterCard president and chief executive officer.

“We continue to launch new products, enter new geographies and open new acceptance channels. We launched Travelex Cash Passport in Brazil and South Africa and recently completed our acquisition of the Card Program Management assets of Travelex, allowing us to further build our global prepaid presence. During the quarter, we also signed a long-term debit renewal with Poste Italiane, one of our largest debit issuers in Europe.”

Total operating expenses increased 9.4%, to $665 million, during the first quarter of 2011 compared to the same period in 2010. Foreign currency fluctuations had a minimal impact on overall operating expenses. The increase in total operating expenses was driven by:

• A 7.9% increase in general and administrative expenses, primarily due to increased investments in support of strategic growth initiatives and the inclusion of DataCash’s expenses.
• A 12.1% increase in advertising and marketing, to $129 million, primarily due to customer-specific initiatives and sponsorships.

In the first quarter of 2011, operating income increased 19.4% over the year-ago period and the company delivered an operating margin of 55.7%.

MasterCard reported no other income or expense in the first quarter of 2011 versus other expense of $5 million in the first quarter of 2010. The change was driven by a decrease in interest expense due to lower interest accretion related to a litigation settlement.

MasterCard's effective tax rate was 32.8% in the first quarter of 2011, versus a rate of 34.6% in the comparable period in 2010. The decrease was primarily due to a more favorable geographic mix of earnings.

Through quarter end, the company had repurchased approximately 2.6 million shares of class A common stock at a cost of $654 million under the $1 billion share repurchase program authorized on September 14, 2010. On April 12, 2011, MasterCard’s board of directors amended its share repurchase program authorizing the company to repurchase an incremental $1 billion of class A common stock, bringing the authorization to an aggregate of $2 billion. As of April 28, 2011, the company had completed the repurchase of approximately 3.9 million shares of class A common stock at a cost of $1 billion.

First-Quarter Financial Results Conference Call Details

At 9:00 a.m. ET today, the company will host a conference call to discuss its first quarter financial results.

The dial-in information for this call is 866-362-4832 (within the U.S.) and 617-597-5364 (outside the U.S.) and the passcode is 63290866. A replay of the call will be available for one week following the meeting. The replay can be accessed by dialing 888-286-8010 (within the U.S.) and 617-801-6888 (outside the U.S.) and using passcode 79828010.

The live call and the replay, along with supporting materials, can also be accessed through the Investor Relations section of the company’s website at www.mastercard.com.

About MasterCard Incorporated

As a leading global payments company, MasterCard Incorporated prides itself on being at the heart of commerce, helping to make life easier and more efficient for everyone, everywhere. MasterCard serves as a franchisor, processor and advisor to the payments industry, and makes commerce happen by providing a critical economic link among financial institutions, governments, businesses, merchants, and cardholders worldwide. In 2010, $2.7 trillion in gross dollar volume was generated on its products by consumers around the world. Powered by the MasterCard Worldwide Network – the fastest payment processing network in the world – MasterCard processes over 23 billion transactions each year and has the capacity to handle 160 million transactions per hour, with an average network response time of 130 milliseconds and with 99.99 percent reliability. MasterCard advances global commerce through its family of brands, including MasterCard®, Maestro®, and Cirrus®; its suite of core products such as credit, debit, and prepaid; and its innovative platforms and functionalities, such as MasterCard PayPass™ and MasterCard inControl®. MasterCard serves consumers, governments, and businesses in more than 210 countries and territories. For more information, please visit us at www.mastercard.com.

TSYS Acquires TermNet

TSYS Expands Merchant Acquiring Presence With Acquisition of TermNet

COLUMBUS, Ga.--(BUSINESS WIRE)--TSYS (NYSE: TSS) announced today that it has acquired TermNet Merchant Services, an Atlanta-based merchant acquirer. The company will be re-branded as TSYS and fully integrated into TSYS Merchant Solutions^SM, another recent TSYS acquisition based in Omaha, Nebraska.

“Culturally, our two companies are a great match, and we feel that this is the next logical step in our relationship.”

TermNet has a 25-year history in the merchant acquiring industry, and is ranked as the 52^nd-largest merchant acquirer in the U.S. by dollar volume according to The Nilson Report*. TSYS Merchant Solutions will now serve more than 327,000 merchant locations across the United States.

“The acquisition of TermNet is the next step in establishing ourselves as a major player in the merchant acquiring industry,” said Philip W. Tomlinson, chairman of the board and chief executive officer of TSYS. “With its highly diversified merchant portfolio and strong sales distribution channel, we believe this is a great opportunity to continue to grow the TSYS Merchant Solutions business.”

“We have always had a strong partnership with TSYS,” said David Stanford, president and chief executive officer of TermNet. “Culturally, our two companies are a great match, and we feel that this is the next logical step in our relationship.”

TermNet has offices in Atlanta, Georgia; Dallas, Texas; Louisville, Kentucky; and Panama City, Florida. Terms of the deal are not being disclosed.

*The Nilson Report, March 2011

Global Payments Announces .02 cent Third Quarter Dividend

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ATLANTA, May 3, 2011 /PRNewswire/ --Global Payments Inc. (NYSE: GPN), a leader in electronic transaction payment processing, announced today that its board of directors approved fiscal 2011 third quarter dividend of $0.02 per common share payable May 31, 2011 to shareholders of record as of May 17, 2011.    

Global Payments Inc. (NYSE: GPN) is a leading provider of electronic transaction processing services for merchants, Independent Sales Organizations (ISOs), financial institutions, government agencies and multi-national corporations located throughout the United States, Canada, Europe and the Asia-Pacific region.  Global Payments, a Fortune 1000 company, offers a comprehensive line of processing solutions for credit and debit cards, business-to-business purchasing cards, gift cards, electronic check conversion and check guarantee, verification and recovery including electronic check services, as well as terminal management.  Visit www.globalpaymentsinc.com for more information about the company and its services.

Contact: Jane M. Elliott
770-829-8234
investor.relations@globalpay.com

SOURCE Global Payments Inc.

Debit Interchange History from UnfairCreditCardFees.com

Warning:  The following Slideshare presentation contains graphic images which may be disturbing to those who work for Visa, MasterCard or the banking industry...Debit Card Fees Slide Share

View more presentations from apulvermache

VeriFone to Report Second Quarter Fiscal 2011 Results on June 2, 2011

May 02, 2011 08:00 AM Eastern Daylight Time 

Earnings Webcast and Call after Close of Trading

SAN JOSE, Calif.--(BUSINESS WIRE)--VeriFone Systems, Inc. (NYSE: PAY), will release its financial results for the second quarter of fiscal 2011 after the market closes on June 2, 2011.

The management of VeriFone will host a conference call to review the financial results on June 2, 2011, at 1:30 pm (PT). In addition to discussing VeriFone's second quarter results, management may provide forward looking guidance on the call.

To access the audio webcast with slides, please go to VeriFone's website (http://ir.verifone.com) at least ten minutes prior to the call to register. The recorded audio webcast will be available on VeriFone's website until June 9, 2011.

To hear the live conference call by phone, please dial the following numbers:

							Domestic callers: 866.383.8119
							International callers: +1.617.597.5344
							Passcode: 8650 8170

To hear a replay of the conference call, which will be available until June 9, 2011, please dial the following numbers:

							Domestic callers: 888.286.8010
							International callers: +1.617.801.6888
							Passcode: 2326 4621

Additional Resources:

http://ir.verifone.com

About VeriFone Systems, Inc. (www.verifone.com)

VeriFone Systems, Inc. (“VeriFone”) (NYSE: PAY) is the global leader in secure electronic payment solutions. VeriFone provides expertise, solutions and services that add value to the point of sale with merchant-operated, consumer-facing and self-service payment systems for the financial, retail, hospitality, petroleum, government and healthcare vertical markets. VeriFone solutions are designed to meet the needs of merchants, processors and acquirers in developed and emerging economies worldwide.

Contacts

VeriFone Systems, Inc.
Investor Contact:
Doug Reed, 408-232-7979
ir@verifone.com
or
Editorial Contact:
VeriFone Media Relations
Pete Bartolik, 508-283-4112
pete_bartolik@verifone.com

Bill.com Rolls Out Official Integration with Sage Peachtree Software

Image via CrunchBase

May 02, 2011 07:59 AM Eastern Daylight Time 

Bill.com customers using Peachtree gain web-based data access; two-way synchronization between solutions eliminates tedious data entry and saves Peachtree customers time and money

PALO ALTO, Calif.--(BUSINESS WIRE)--Bill.com, the leader in paperless bill management and payment for small and medium-sized businesses (SMBs) and CPA firms, today announced the official roll out of Sage Peachtree Sync, providing seamless Bill.com integration with Sage Peachtree software following a successful customer beta.

“Business bill payment is a process, and Bill.com delivers a level of efficiency, accessibility and control that extends well beyond what is available in today’s top accounting software packages”

Bill.com's Sage Peachtree one-click, two-way synchronization liberates accountants and SMBs from redundant data entry and provides a simple, powerful and cost-effective solution for managing the entire bill payment and management process, anytime and anywhere through any mobile device or Web browser.

“With Bill.com we've gained so much time on tedious front- and back-office financial tasks, from redundant data entry to maintaining separate data files on behalf of multiple clients,” said Heather Richter, a senior accountant at Wegner LLP and a Bill.com Sage Peachtree beta tester. “We’ve been able to refocus our energy on our business and clients, and we’d strongly recommend Bill.com to any accounting firm using Peachtree and seeking a more efficient way to handle bill payment and management on behalf of their customers.”

With Sage Peachtree Sync for Bill.com, Sage Peachtree users get:

• Anytime, anywhere online access to financial documents, vendor bills, payment processing and more both from the office or in a mobile environment
• Paperless multi-user accounts payable (AP) workflow utilizing digital images of invoices and other financial documents for both financial and non-financial users
• One-click, flexible payment methods including check, Bill.com ePayment (ACH), and instant payments via PayPal that eliminate the need to print, sign, and mail checks or enter payments in separate banking systems
• Enhanced check management, including advanced fraud protection previously only available to large enterprise organizations
• End-to-end visibility of AP processes, including easy access to an audit trail of every transaction
• Unlimited digital storage for bills and financial documents
• No duplicate data entry between Bill.com and Sage Peachtree’s desktop software; automatic data syncing ensures consistency and quality across financial processes and reporting

“The Bill.com integration with Sage Peachtree fits our strategic goal of offering our customers SaaS services that make managing their business easier,” said Connie Certusi, general manager, Sage Peachtree. “We are very excited about the combination of this great tool and our accounting software. It will change the way Sage Peachtree customers interact with their employees, customers and vendors.”

“Business bill payment is a process, and Bill.com delivers a level of efficiency, accessibility and control that extends well beyond what is available in today’s top accounting software packages,” said Rene Lacerte, CEO, Bill.com. “The new Bill.com Sage Peachtree Sync enables millions of Sage Peachtree users to streamline their accounts payable processes by gaining easy access to all their financial documents, automating workflow and approvals, and making payments possible with the click of a mouse. This is all accessible from any Internet connection or mobile device. As a result, Sage Peachtree users will save time and money and gain better control of their day-to-day finances and cash flow.”

Bill.com is offered to the accounting profession exclusively though the Bill.com Accountant Program from CPA2Biz, a subsidiary of the American Institute of Certified Public Accountants (AICPA).

Pricing and Availability

The Bill.com Peachtree Sync is available immediately. The feature is included with any Bill.com account with pricing starting at $19.99/Month. To learn more, new and existing customers should visit http://www.bill.com/peachtree/.

About Bill.com

Bill.com is an on-demand accounts payable and accounts receivable application for CPAs and small and midsized businesses. Bill.com users can receive, route and pay invoices electronically — they never have to touch a paper bill again — resulting in time and cost savings to finance personnel of over 50% versus manual accounts payable and check writing processes. Invoices are emailed, scanned or faxed into the Bill.com service. Digital images of invoices are then routed electronically for approval, ensuring a complete audit trail and eliminating lost or mishandled paper. Bill.com handles check printing and mailing as well as electronic payments, and uses enterprise-class fraud protections that are impractical for small and midsized businesses to implement on their own. Bill.com integrates with popular desktop and on-demand accounting packages, ensuring consistency of financial data and streamlined financial planning, reporting and audit activities. Bill.com has received numerous awards including Bill.com's Zen (Zero Entry) service winning Accounting Today's Best New AP/AR Product for 2011, a 2009 Innovation Award from CPA Technology Advisor, a 4-star rating from PC Magazine, a 2010 Barlow Monarch Innovation Award for innovation in financial services . Bill.com was recently named to the Red Herring Global 100.

Contacts

Ruder Finn for Bill.com
Allison Yochim, (415) 348-2724
yochima@Ruderfinn.com

Analysis on why Visa Made an Investment in Square

Visa (Goliath) Not Investing in David (Square) but Goliath (Twitter)

Yesterday's announcement that Visa made a strategic investment in Square took many in the payment industry by surprise...especially Verifone,  as this news squarely provides Verifone with a Black Eye and not the Pea kind.  

In prepared statements, Square’s Jack Dorsey, said: “We’re thrilled to partner with Visa. This relationship will accelerate our vision of empowering businesses and aspiring entrepreneurs to succeed. The best way to grow your business is to accept credit cards. Together, we can ensure that all businesses of any size can pursue the American Dream.”

Verifone's Insecurity "Around" Square
Gained Momentum with Visa announcement

So Why would Goliath invest in David asks Forbes? Good question.

Here's my opinion:

Square has been targeted by Verifone as "less than secure."  (see Verifone Ad on right) Therefore, by getting the backing of Visa, Square not only provides Square with "instant credibility" but, at the same time, strikes back at Verifone.  Let's say that Verifone's Insecurity "AROUND SQUARE" just gained momentum...albeit in reverse.

Shout out to Verifone:  If it makes you feel any better, I've got a feeling, that Visa isn't as interested in Square as they are in Twitter's 200 million base. Here's why:

After spending a couple hours last night wondering why on earth Visa would invest in Square…(If Goliath was going to invest in David why not a David with a PCI Certified personal POS)...I think I got it figured out.  

It’s because David isn’t really David afterall, David is Goliath. (Square is Jack Dorsey and Jack Dorsey is (again) Twitter)  

It’s all about P2P (person to person money movement) and this is Visa making a brilliant P2P investment/move.  Let's look at some recent developments:

1.  Jack Dorsey recently rejoined Twitter and therefore, Dorsey is playing a dual role at Square (CEO) and Twitter, where he has returned to lead product development.  Let's just say that paving the road for a real time T2T (twitter to twitter) payment platform is a helluva good start.  Think of it.  Need to pay the babysitter?  Twitt-her.   Owe someone $15 bucks for a burger and a beer?  Twitt-him.   Want to donate $10 to Tokyo, Haiti, Tuscaloosa, etc.?  Twitt-it.

2.  Visa recently announced it was partnering with Fiserv (Zashpay) and CashEdge to enable people to send money from any Visa card or a bank account to another person's credit or debit card  (Visa cards only, naturally). In the case of owing your buddy $15 for a burger and a beer, send $15 from your debit card to his debit card.  (Visa cards only)

 3. Twitter has a 200 million (and growing) base which paves the way for Visa to provide a key competitive advantage over MasterCard in the much ballyhooed P2P market.  Believe me, MasterCard recognizes the potential value of P2P. as this press release from MasterCard on 4/27 demonstrates.  MasterCard Names Marcie Verdin Group Head, Global Person-to-Person Payments  

So, my simple analysis is that Visa is investing in Square in order to introduce P2P payments and “Skim” from Twitter’s 200 million base.  At the same time, they shut out MasterCard. (Visa cards only) It's a brilliant move by all parties...Visa, Square AND Twitter.  Especially in light of the fact that former Google CEO, Eric Schmidt recently invested in a small company called Twitpay which is trying to carve a niche in the charitable donations/payments arena.

At the end of the day, Jack Dorsey's strategic partnership with Visa was indeed a brilliant move, but without Twitter, it's a move that never would have happened in a billion years. (Then again, a billion years passed before someone came up with Twitter and Jack Dorsey not only did, but will probably earn at least a dollar or $5 for every one of those passing years.)  

Prediction:  Visa and Twitter will make a killing off the P2P/T2T business. I don't know what they'd call it. (I kinda like Twit$) and when Twitter and Visa introduce "Twit$" Powered by Visa,  Square AND Twitter will make a piece of every transaction.  And it won't stop there.  The possibilities are endless.   In closing, I'd like to point out that if this wasn't the idea behind the Visa/Square strategic relationship, then I'm wrong.  :)  

If you have any comments or thoughts on this analysis, please feel free to email them to: SquareRoundup@ePINDebit.com

Related articles

• Visa invests in Square, snubs VeriFone (electronista.com)
• Square Gets Visa Backing (webpronews.com)
• Visa Makes A Strategic Investment In Disruptive Mobile Payments Startup Square (techcrunch.com)
• Square gets financial backing from Visa, asks to see some ID (soheilsadeq.wordpress.com)
• Credit card giant Visa funds Twitter founder's Square mobile payment startup (9to5mac.com)
• Square gets strategic investment from Visa (geek.com)
• Visa Invests in Mobile Payment Company Square (stiel.org)
• Square Now has Visa in its Corner (socialtimes.com)
• Square gets financial backing from Visa, asks to see some ID (engadget.com)
• Closing Bell: Visa Invests in Square | What RIM' s Tungle Acquisition Might Mean (marketingvox.com)
• Visa Gives Square a Stamp of Approval With Strategic Investment (mashable.com)

ACI Worldwide posts Q2 revenue growth of 19%

New York, April 28, 2011 -- ACI Worldwide, Inc. (Nasdaq:ACIW), a leading international provider of payment systems, today announced financial results for the period ended March 31, 2011. We will hold a conference call on April 28, 2011, at 8:30 a.m. EDT to discuss this information. Interested persons may also access a real-time audio broadcast of the teleconference at www.aciworldwide.com/investors .

"First quarter sales and backlog growth over prior-year quarter continues to demonstrate the appeal of ACI's strategy and product solutions suite as we increase the number of new payment applications owned by each of our existing customers. The company is executing better quarterly performance as underscored by our growth in operating income and improvement in operating EBITDA," said Chief Executive Officer Philip Heasley.

FINANCIAL SUMMARY

Sales

Sales bookings in the quarter totaled $122.9 million which was an increase of $41.8 million, or 52%, as compared to the March 2010 quarter. The stronger quarter was driven by two large renewals with add-on business in Canada as well as large renewals in the Netherlands, Ireland, Mexico, Indonesia, USA and South Africa. Notable changes in the mix of sales compared to last year's quarter included a rise of $17 million and $9 million in add-on and new application sales, respectively.

Backlog

As of March 31, 2011, our estimated 60-month backlog was $1.613 billion, an increase of $47 million as compared to $1.566 billion at December 31, 2010. The growth was primarily attributable to the impact of foreign exchange translation as well as to the acquisition of ISD Corporation. As of March 31, 2011, our 12-month backlog was $391 million, an increase of $10 million as compared to $381 million for the quarter ended December 31, 2010.

Revenues

Revenue was $104.5 million in the quarter ended March 31, 2011, an increase of $16.8 million, or 19%, over the prior-year quarter revenue. The growth in 2011 revenue over the prior-year quarter includes higher recurring revenue with an increase of $14.0 million, or 22%, over prior-year quarter resulting in $77.3 million in recurring revenue.

Operating Expenses

Operating expenses were $97.0 million in the March 2011 quarter compared to $88.6 million in the March 2010 quarter, a rise of $8.4 million, or 9%. Operating expense growth was led primarily by increased sales & marketing expenses and by expenses related to the acceleration of product development.

Operating Income

Operating income was $7.5 million in the March 2011 quarter, an increase of approximately $8.4 million as compared to an operating loss of $0.9 million in the March 2010 quarter.

Liquidity

We had $168.9 million in cash on hand as of March 31, 2011. As of March 31, 2011, we also had $75.0 million in unused borrowings under our credit facility.

Operating Free Cash Flow

Operating free cash flow ("OFCF") for the quarter was $12.3 million as compared to $8.2 million for the March 2010 quarter. The improvement in OFCF was driven by higher operating income as well as by lower cash taxes year-over-year.

Other Expense

Other expense for the quarter was $0.7 million, essentially flat compared to other expense of $0.6 million in the March 2010 quarter.

Taxes

Income tax expense in the quarter was $5.2 million, or a 76% effective tax rate, compared to $0.6 million in the prior-year quarter. The increase in income tax expense is primarily the result of higher pre-tax income. In addition, the effective tax rate is negatively impacted by our inability to recognize income tax benefits on losses sustained in certain tax jurisdictions.

Net Income and Diluted Earnings Per Share

Net income for the quarter ended March 31, 2011 was $1.6 million, compared to net loss of $2.1 million during the same period last year, an improvement of $3.7 million.

Earnings per share for the quarter ended March 31, 2011 was $0.05 per diluted share compared to a loss of $0.06 per diluted share during the same period last year. The improvement was largely due to stronger operating income.

Weighted Average Shares Outstanding

Total diluted weighted average shares outstanding were 34.0 million for the quarter ended March 31, 2011 as compared to 33.7 million shares outstanding for the quarter ended March 31, 2010.

2011 Guidance

We do not presently anticipate changes to our annual guidance based upon what we are seeing in our business markets to date. Hence, guidance remains as indicated on February 15, 2011 with calendar year guidance as follows: Revenue to achieve a range of $440-450 million, Operating Income of $62-65 million and Operating EBITDA of $98-101 million.

About ACI Worldwide

ACI Worldwide powers electronic payments for more than 750 financial institutions, retailers and processors around the world. The company has a broad, integrated suite of electronic payment software in the market. More than 75 billion times each year, ACI's solutions process consumer payments. On an average day, ACI software manages more than US$12 trillion in wholesale payments. And for more than 150 organizations worldwide, ACI software helps to protect their customers from financial crime. To learn more about ACI and understand why we are trusted globally, please visit www.aciworldwide.com . You can also find us on www.paymentsinsights.com or on Twitter @ACI_Worldwide.

cMoney Announces ATM to ATM Cash Transfer

April 29, 2011 08:00 AM Eastern Daylight Time 

HOUSTON--(BUSINESS WIRE)--cMoney, Inc. (OTCBB:CMEY), a Houston-based company at the forefront of global mobile phone-based payment and money transfer utilizing secure patent pending technologies for mobile phone users, retailers, and financial institutions, continues to innovate and strengthen the cMoney brand globally, with its latest technology enhancement to its existing solution, now allowing the movement of money between ATMs.

“I am pleased to confirm that all cMoney registration papers have been filed to bring our account current.”

Business development plans - cMoney continues its in-depth discussions with major players in the industry, currently under Non-Disclosure Agreements. cMoney is currently in negotiation with a major financial partner to accelerate the deployment of cMoney’s latest exciting technology.

Moving forward towards submission of S-1 – cMoney continues, with its previously announced partners, to prepare for the submission of its expedited Form S-1/A.

Nevada Secretary of State filings - Mr. Matthews, CEO of cMoney stated, “I am pleased to confirm that all cMoney registration papers have been filed to bring our account current.”

Ongoing research – our cMoney solution continues to receive positive feedback in our business development discussions, technology developments, shareholder feedback and from the market. Another enhancement slated for rollout in the cMoney solution will offer our customers a new virtual credit card geared specifically to their spending habits while enhancing their credit worthiness.

Technology development – The latest hype of other mobile payment carriers and credit card providers is the “arrival“ of NFC, (Near Field Communication). NFC suppliers claim their unprecedented technology will enable a chip, which will be embedded into future phones, will allow their customers to benefit from various mobile payment technologies still being installed. Our cMoney solution, once launched, will offer every one of our customers the opportunity to use the cMoney solution. With our cMoney solution, there is no need to purchase a new cell phone, no need to visit only NFC enabled stores (where in some locations purchases are limited to less than $100.00) and more importantly our cMoney solution performs all these compatible functions.

Further cMoney’s introduction of our revolutionary technology is state of the art, and will trump the NFC concept allowing our customers new financial freedom. The cMoney solution provides for credit card data never being revealed; implementing store discount, coupons, and loyalty cards; sending money from cell to cell instantly, bank to bank and ATM to ATM , securely, all at a very reasonable rate. cMoney will act as your own personal bank, if you do not have a banking relationship at present. Most importantly, merchants do not have to change or upgrade their equipment and online purchases over the internet can be made securely without disclosure of your personal data.

Mr. Matthews added, “In summary, cMoney continues to innovate, strengthen our brand and improve on the latest technology developments allowing us to rapidly move forward towards our initial stated goal of a successful Hard Launch.”

About cMoney, Inc.

cMoney, Inc., a Houston-based technology company that provides innovative secure mobile payment solutions for mobile phone users, retailers and financial institutions, has developed an innovative way to send money and pay for goods and services using a mobile phone and the text messaging system protected by patents. Scheduled to debut in 2011, the pioneering technology will create a “virtual wallet” that will eliminate exposure to identity and credit card theft for users. It can be used anywhere that cash, checks, ATMs or credit cards are accepted. For more information, visit www.cmoney.com

MasterCard Appoints Rima Qureshi to Board of Directors

April 29, 2011 09:43 AM Eastern Daylight Time 

PURCHASE, N.Y.--(BUSINESS WIRE)--MasterCard Incorporated (NYSE: MA) today announced the election of Rima Qureshi to its Board of Directors, effective immediately. With this appointment, the MasterCard Board of Directors is now comprised of 12 members.

“Her appointment further enhances the truly global perspective of our Board. I look forward to working with Rima and the entire Board of Directors as MasterCard continues to create payment solutions that benefit consumers, businesses and governments around the world.”

“Rima’s expertise in the mobile, telecommunications and information technology industries and her proven leadership capabilities will certainly benefit MasterCard,” said Richard Haythornthwaite, chairman of the MasterCard Board of Directors. “Her appointment further enhances the truly global perspective of our Board. I look forward to working with Rima and the entire Board of Directors as MasterCard continues to create payment solutions that benefit consumers, businesses and governments around the world.”

Ms. Qureshi, 46, is senior vice president and business unit head, CDMA Mobile Systems at Ericsson, the world's leading provider of technology and services to telecom operators. Prior to her appointment to this position in January 2010 as head of one of Ericsson’s four business units, she served as vice president, AT&T Improvement Program Manager for Ericsson North America from 2008 until 2009, and vice president, Service Sales for Ericsson Canada in 2008. She served as vice president and head of Product Area Customer Support for Ericsson AB in Stockholm from 2004 until 2008. Ms. Qureshi also has served as head of Ericsson Response since 2006. Ms. Qureshi has held positions of increasing seniority within Ericsson in Canada and Sweden since joining the company in 1993. Before joining Ericsson, Ms. Qureshi served as an IT consultant at DMR Group Inc.

About MasterCard Incorporated

As a leading global payments company, MasterCard Incorporated prides itself on being at the heart of commerce, helping to make life easier and more efficient for everyone, everywhere. MasterCard serves as a franchisor, processor and advisor to the payments industry, and makes commerce happen by providing a critical economic link among financial institutions, governments, businesses, merchants, and cardholders worldwide. In 2010, $2.7 trillion in gross dollar volume was generated on its products by consumers around the world. Powered by the MasterCard Worldwide Network – the fastest payment processing network in the world – MasterCard processes over 23 billion transactions each year and has the capacity to handle 160 million transactions per hour, with an average network response time of 130 milliseconds and with 99.99 percent reliability. MasterCard advances global commerce through its family of brands, including MasterCard®, Maestro®, and Cirrus®; its suite of core products such as credit, debit, and prepaid; and its innovative platforms and functionalities, such as MasterCard PayPass™ and MasterCard inControl®. MasterCard serves consumers, governments, and businesses in more than 210 countries and territories. For more information, please visit us at www.mastercard.com.

Contacts

MasterCard Incorporated
Media Relations:
Chris Monteiro, +1-914-249-5826
chris_monteiro@mastercard.com
or
Investor Relations:
Barbara Gasper, +1-914-249-4565
investor_relations@mastercard.com