Summary
Fiserv Inc. (FISV) filed its 2011 10-K on February 24, 2012, reporting strong performance with total revenue of $4.3 billion and net income of $472 million. The company, a leading global provider of financial services technology, experienced revenue growth driven by its Payments and Financial segments, largely due to recurring, transaction-based fees from its diverse client base of approximately 16,000 institutions. Significant strategic acquisitions in 2011, including CashEdge and M-Com, are expected to bolster digital payments and mobile banking capabilities, aligning with the company's focus on innovation and client relationship value. Financially, Fiserv demonstrated resilience in a challenging economic environment, supported by its largely non-discretionary product and service offerings. The company managed its debt effectively, refinancing a portion of its outstanding notes. Despite ongoing industry consolidation and regulatory changes like the Dodd-Frank Act, Fiserv's core business model and strategic investments position it for continued growth, with a strong emphasis on operational effectiveness and capital discipline for long-term shareholder value.
Financial Highlights
53 data points| Revenue | $4.29B |
| Cost of Revenue | $601.00M |
| Gross Profit | $3.69B |
| SG&A Expenses | $795.00M |
| Operating Expenses | $3.30B |
| Operating Income | $990.00M |
| Interest Expense | $188.00M |
| Net Income | $472.00M |
| EPS (Basic) | $0.83 |
| EPS (Diluted) | $0.82 |
| Shares Outstanding (Basic) | 570.20M |
| Shares Outstanding (Diluted) | 576.80M |
Key Highlights
- 1Total revenue for 2011 reached $4.3 billion, a 5% increase year-over-year, driven by growth in both Payments (8%) and Financial (3%) segments.
- 2Net income was $472 million, with diluted earnings per share from continuing operations at $3.40.
- 3The company completed significant acquisitions in 2011: CashEdge for approximately $460 million and M-Com for an aggregate of $50 million with two other companies, strengthening its digital and mobile payment offerings.
- 4Fiserv continues to have a diversified client base, with its top 50 financial institution clients representing less than 25% of annual revenue, mitigating concentration risk.
- 5Recurring revenue, primarily from account- and transaction-based fees under long-term contracts (3-5 years), constituted the majority (82%) of total revenue, indicating revenue stability.
- 6The company maintained a strong operational cash flow of $953 million in 2011.
- 7Long-term debt remained substantial at $3.4 billion, but the company actively managed its debt structure, including refinancing efforts and maintaining compliance with covenants.