Profit dips 35%
Financial software and services provider Fiserv has reported a 35% decline in net income to $62m for the fourth quarter 2008, compared to $96m in the year-ago quarter, on revenue down 4% at $1.06 billion.
Operating income grew 20% to $219m, while diluted EPS fell 33% to $0.39. Free cash flow generated increased 38% to $611m. The company said processing and services revenue grew 16% to $852m, while product revenue fell 43% to $209m.
During the quarter Fiserv acquired Montana-based First Interstate BancSystem’s data processing unit i_Tech for $40m.
For fiscal 2008, it reported a 30% increase in net income to $569m compared to $439m a year ago, on revenue up 22% at $4.73 billion.
Jeffery Yabuki, president and chief executive at Fiserv, said: During 2008, we delivered on our commitments to substantially grow earnings and cash flow while integrating CheckFree, both in the face of a challenging market. Although we are disappointed with the internal revenue growth in our financial segment, which was negatively impacted by lower home equity processing and discretionary license revenues, we continue to make great progress in building our base of recurring revenue.
For fiscal 2009, the company expects adjusted earnings per share from continuing operations in a range of $3.61 to $3.75 and adjusted internal revenue growth in range of 0% to 4%.