Summary
Fiserv Inc. reported second-quarter 2009 results showing a revenue decline of 20% year-over-year, largely attributed to the divestiture of its Insurance segment. Despite the revenue drop, operating income saw a slight increase of 2% due to improved operating margins in its core Financial and Payments segments and cost-saving initiatives. Diluted earnings per share (EPS) from continuing operations grew to $0.73 from $0.62 in the prior year's quarter, indicating enhanced profitability on a per-share basis. The company's balance sheet remains solid, with cash and cash equivalents increasing and total debt decreasing. Fiserv Inc. continues to manage its liquidity through operating cash flows and an available revolving credit facility. The company is also progressing with the sale of its remaining Fiserv ISS business, expecting to close by year-end 2009. While the company faces ongoing economic uncertainties and risks related to its business operations and pending litigation, the results suggest a focus on operational efficiency and profitability within its core segments. Investors should monitor the progress of the Fiserv ISS sale and any potential impacts from the ongoing legal proceedings.
Financial Highlights
47 data points| Revenue | $1.00B |
| Cost of Revenue | $125.00M |
| Gross Profit | $875.00M |
| SG&A Expenses | $176.00M |
| Operating Expenses | $766.00M |
| Operating Income | $234.00M |
| Net Income | $140.00M |
| EPS (Basic) | $0.23 |
| EPS (Diluted) | $0.23 |
| Shares Outstanding (Basic) | 620.00M |
| Shares Outstanding (Diluted) | 623.20M |
Key Highlights
- 1Total revenues decreased by 20% to $1,032 million for the three months ended June 30, 2009, primarily due to the sale of the Insurance segment.
- 2Income from continuing operations increased to $114 million for the three months ended June 30, 2009, from $102 million in the prior year, with diluted EPS from continuing operations rising to $0.73 from $0.62.
- 3Operating income increased by 2% to $232 million, driven by improved operating margins in the Financial and Payments segments.
- 4Total expenses decreased by 25% to $800 million, reflecting the impact of the Insurance segment divestiture and cost-saving initiatives.
- 5Cash and cash equivalents increased to $309 million at June 30, 2009, from $232 million at December 31, 2008.
- 6Long-term debt decreased to $3,751 million at June 30, 2009, from $3,850 million at December 31, 2008.
- 7The company received a $25 million after-tax gain on discontinued operations in the second quarter of 2009, related to a prior sale, and expects to close the sale of the remaining Fiserv ISS business by the end of 2009.