10-KPeriod: FY2012

FISERV INC Annual Report, Year Ended Dec 31, 2012

Filed February 22, 2013For Securities:FISV

Summary

Fiserv, Inc. reported total revenue of $4.5 billion for the fiscal year ended December 31, 2012, with a significant portion (83%) derived from recurring processing and services fees. The company highlighted strong operating cash flow of $835 million, underscoring the resilience of its fee-based revenue model. A key strategic development was the acquisition of Open Solutions Inc. in January 2013, which is expected to enhance Fiserv's account processing capabilities and expand its client base. The company emphasizes its leadership in financial services technology, serving approximately 16,000 clients globally. Its business is structured into two primary segments: Payments and Financial Institution Services. Fiserv continues to invest in innovation and integration of its products and services to deliver value to clients in a dynamic financial landscape. Despite economic uncertainties, Fiserv demonstrated steady revenue growth and maintained a healthy operating margin, positioning itself for continued relevance in the evolving financial technology sector.

Financial Highlights

51 data points
Beta

Revenue

$4.44B

85.8% Gross Margin

Net Income

$611.00M

13.8% Net Margin

EPS (Diluted)

$1.11

Total Assets

$8.50B

Cash & Equivalents

$358.00M

Free Cash Flow

$633.00M

Financial Statements
Beta
Revenue$4.44B
Cost of Revenue$628.00M
Gross Profit$3.81B
SG&A Expenses$824.00M
Operating Expenses$3.39B
Operating Income$1.05B
Interest Expense$174.00M
Net Income$611.00M
EPS (Basic)$1.13
EPS (Diluted)$1.11
Shares Outstanding (Basic)543.20M
Shares Outstanding (Diluted)550.00M

Key Highlights

  • 1Total revenue for the fiscal year ended December 31, 2012, was $4.5 billion.
  • 283% of consolidated revenue in 2012 was generated from account- and transaction-based fees, indicating a strong recurring revenue model.
  • 3Net cash provided by operating activities from continuing operations was $835 million in 2012.
  • 4Acquisition of Open Solutions Inc. on January 14, 2013, for a cash purchase price of $55 million plus assumed debt, aimed at expanding account processing capabilities.
  • 5The company serves approximately 16,000 clients globally, across various financial institutions and merchants.
  • 6Invested approximately 9% of total revenue in product development in 2010, 2011, and 2012.
  • 7Total expenses were $3.4 billion in 2012, with operating income of $1.1 billion.

Frequently Asked Questions

Fiserv is a global provider of financial services technology, offering solutions for account processing, electronic payments, and internet/mobile banking. The majority of its revenue, approximately 83% in 2012, is derived from recurring account- and transaction-based fees under long-term contracts, with services being largely non-discretionary for its clients.

For the year ended December 31, 2012, Fiserv reported total revenue of $4.5 billion, income from continuing operations of $597 million, and net cash provided by operating activities of $835 million. The company maintained a strong operating income of $1.1 billion.

A significant development highlighted is the acquisition of Open Solutions Inc. in January 2013. This acquisition aims to strengthen Fiserv's account processing technology offerings and expand its client base. Previous acquisitions in 2011, such as CashEdge and M-Com, were also noted for advancing its digital payments and mobile capabilities.

Key risks identified include adverse impacts from market and economic conditions, intense competition, the need to adapt to technological changes, potential for client contract non-renewal, industry consolidation, the evolving regulatory landscape (including the Dodd-Frank Act), cybersecurity threats, operational failures, software development issues, intellectual property infringement claims, and the inherent risks associated with acquisitions.