Summary
Fiserv, Inc. reported revenue of $1,048 million for the first quarter of 2011, a 4% increase from the prior year period. This growth was primarily driven by the Payments segment (up 7%) and the Financial segment (up 2%). While revenue saw a modest increase, total expenses rose by 7%, largely due to an 18% increase in selling, general, and administrative expenses, which included a significant $18 million severance charge. This expense increase outpaced revenue growth, leading to a 7% decrease in operating income to $221 million and a decline in operating margin to 21.1% from 23.7% in the prior year quarter. Despite the decrease in operating income, net income remained relatively stable at $112 million ($0.76 per diluted share) compared to $121 million ($0.79 per diluted share) in the prior year quarter. The company completed three acquisitions in the quarter for $49 million, with M-Com being a notable addition to enhance mobile capabilities. Fiserv also continued its share repurchase program, buying back $252 million of its stock, while maintaining a strong liquidity position with $517 million in cash and cash equivalents and $972 million available under its revolving credit facility.
Financial Highlights
48 data points| Revenue | $1.05B |
| Cost of Revenue | $150.00M |
| Gross Profit | $898.00M |
| SG&A Expenses | $203.00M |
| Operating Expenses | $827.00M |
| Operating Income | $221.00M |
| Net Income | $112.00M |
| EPS (Basic) | $0.19 |
| EPS (Diluted) | $0.19 |
| Shares Outstanding (Basic) | 583.60M |
| Shares Outstanding (Diluted) | 590.80M |
Key Highlights
- 1Total revenue increased by 4% to $1,048 million in Q1 2011, driven by growth in both the Payments and Financial segments.
- 2Operating income decreased by 7% to $221 million, impacted by a 7% increase in total expenses, including a substantial $18 million severance charge.
- 3Net income was $112 million, a slight decrease from $121 million in the prior year, resulting in diluted EPS of $0.76.
- 4The company completed three acquisitions in the quarter for a total of $49 million, aiming to enhance its product and service offerings, particularly in mobile capabilities.
- 5Fiserv actively engaged in share repurchases, spending $252 million on buying back its common stock.
- 6The company maintained a healthy liquidity position with $517 million in cash and cash equivalents and significant availability under its revolving credit facility.
- 7Interest expense remained flat year-over-year at $45 million, benefiting from interest rate hedging strategies.