Fiserv, Inc. (FISV) reported revenues of $1.01 billion in the first quarter of 2010, down 0.9% from the year-ago quarter.
Fiserv assists financial institutions and health plan administrators in managing their information systems so that they can efficiently deliver services to their customers.
The company operates in two business segments — Financial Institution Services, and Payments and Industry Products. Financial Services generated $540 million of revenues in the quarter, down 0.7% from a year ago. Payments and Industry Products generated $472 million of revenues, down 3.3% from a year ago.
Fiserv continued to expand its payment footprint by signing 93 electronic bill payment clients and 46 debit clients in the quarter.
Net income from continuing operations came in 80 cents compared to 68 cents in the year-ago quarter.
Adjusted Revenue (excluding output solutions postage reimbursements) came in at $954 million, down 1% year over year, primarily due to a decrease in project revenue in the Output Solutions division, lower license and consulting revenue, and volume declines in check processing.
Operating margin came in at 28.9%, down from 29.1% in the year-ago quarter. Adjusted earnings per share from continuing operations (excluding merger costs and other adjustments, severance costs and amortization of acquisition-related intangible) came in 95 cents, up from 90 cents in the year-ago quarter but narrowly missing the Zacks Consensus Estimate of 96 cents.
Fiserv repurchased 1.4 million shares of its common stock in the quarter for $67 million and still has 5.8 million shares remaining under its existing repurchase authorizations as of March 31, 2010. On March 1, 2010, the Board authorized the repurchase of an additional five million shares.
Fiserv ended the quarter with cash and equivalents of $416 million, up from $363 million at the end of the previous quarter. As of March 31, 2010, debt was $3,514 million, down from $3,614 million on December 31, 2010.
Going forward, management reiterated its guidance for 2010. It expects internal revenue growth in the range of 1% –3% in 2010. Earnings per share are projected between $3.96 and $4.07, a growth of 8% to 11% compared to $3.66 in 2009.
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