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Datawest Reports Second Quarter 2004

Friday 30 July 2004 08:10 CET | News

Canadian Datawest Solutions has reported financial results for the second quarter ended June 30, 2004. Revenues for the second fiscal quarter ended June 30, 2004 totalled $10.8 million, a 7% sequential increase over the $10.1 million earned in the first quarter of 2004 and a decrease of 6% over the comparable period last year.

Earnings for the quarter were $0.7 million or $0.01 per share, an improvement of $0.2 million over Q2 2003 and $0.1 million over last quarter. Operating earnings for the quarter improved by $0.3 million or 15% over Q2 2003 and by $0.1 million or 6% over Q1 2004 to $2.1 million. This quarter’s earnings mark the seventh consecutive profitable quarter. Adjusted operating earnings for the quarter were $2.4 million, a 9% or $0.2 million improvement over the comparable quarter last year and 20% or $0.4 million over the previous quarter of $2.0 million. Adjusted operating earnings exclude a $0.3 million restructuring charge in the second quarter for a workforce reduction primarily within the Banking Solutions Group. A direct comparison of financial results quarter over quarter and year over year on a continuing basis was affected by restructuring charges. The table below reconciles actual earnings to adjusted earnings. Revenues Total revenues for the second quarter ended June 30, 2004 were $10.8 million, an increase of $0.7 million over the first quarter 2004 and $0.7 million lower compared to the same quarter 2003. Banking Solutions Group revenues were $7.3 million for the quarter, a $0.5 million increase over the first quarter 2004 and an $0.8 million decrease compared to the second quarter 2003. Banking revenues comprised the following: - Data processing revenues decreased by $0.2 million compared to the first quarter 2004 and were lower than Q2 2003. The decrease was expected due to the deconversion of credit union customers arising from consolidation and merger activities in the industry along with a lower fee structure for customers that renewed extended multi-year contracts. No further significant deconversions are planned for 2004. - Professional services revenues were $0.1 million higher on a sequential basis and lower than Q2 2003 as work on a major project nears completion. - Product and license sales increased by $0.6 million on a sequential basis and by $0.7 million compared to Q2 2003 due to the successful sale and implementation of our IVR phone banking product in BC and Saskatchewan. Other revenue consisted primarily of interest and changes from foreign exchange fluctuations. Payment Solutions Group revenues were $3.5 million, a $0.2 million increase from the first quarter 2004 and $0.2 million increase compared to the second quarter 2003. Payment revenues consisted of the following: - Payment Solutions Group continued to expand the company’s network by adding additional white label ATM and POS devices under management throughout the quarter. Transaction processing revenues increased $0.6 million or 25% for the quarter compared to the same period last year and increased by $0.2 million or 10% on a sequential basis. The quarter over quarter increase was due to higher transaction volumes as a result of an increase in volume related to corporate customers. - Professional services revenues were flat on a sequential basis and were lower compared to the same quarter last year due to sales cycle and timing. - Product and license sales were lower than the comparable quarter and lower on a sequential basis which is consistent with the decrease in professional services revenues. - Other revenue consisted primarily of interest and changes from foreign exchange fluctuations. Expenses Expenses for second quarter 2004 were $8.6 million or 7% higher on a sequential basis and lower than the comparable period last year by $0.9 million or 10%. Operating efficiency overall (operating expenses as a percentage of revenues) for the second quarter improved to 77% before restructuring charges compared to 80% for the first quarter 2004 and 81% for the comparable period 2003. The result is an improv


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Categories: Payments & Commerce | Payments General
Countries: World
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