Fiserv Announces Fourth Quarter And Annual Results

Fiserv, Inc., a provider of information technology applications to the financial industry, reported financial results for the fourth quarter and full year 2008. These financial results reflect the acquisition of CheckFree in December 2007 and the disposition of a 51%

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Fiserv, Inc., a provider of information technology applications to the financial industry, reported financial results for the fourth quarter and full year 2008.

These financial results reflect the acquisition of CheckFree in December 2007 and the disposition of a 51% interest in Fiserv’s insurance operations (“Fiserv Insurance”) in July 2008. Total GAAP revenues were $1.06 billion for the fourth quarter of 2008 compared with $1.11 billion in 2007. Total adjusted revenues, excluding Fiserv Insurance, were $1.01 billion for the fourth quarter of 2008 and $816 million for the fourth quarter of 2007. For the full year, total GAAP revenues were $4.74 billion in 2008 and $3.90 billion in 2007.

Total adjusted revenues, excluding Fiserv Insurance, were up 38 percent to $4.05 billion in 2008 compared with $2.94 billion in 2007. GAAP earnings per share for the fourth quarter of 2008 were $0.39, compared with $0.58 for the fourth quarter of 2007. GAAP earnings per share from continuing operations for the fourth quarter of 2008 were $0.45, which included a $0.20 after-tax loss on the sale of businesses primarily related to Fiserv Insurance, compared with $0.55 for the fourth quarter of 2007. For the full year, GAAP earnings per share were $3.49 in 2008, compared with $2.60 in 2007. GAAP earnings per share from continuing operations were $2.12 in 2008, which included a $0.35 after-tax loss from the sale of businesses, compared with $2.45 in 2007.

Adjusted earnings per share from continuing operations for the quarter were up 23% to $0.85 compared with $0.69 for the fourth quarter of 2007. For the year, adjusted earnings per share were also up 23% to $3.29 compared with $2.67 in 2007. Adjusted internal revenue growth, excluding Fiserv Insurance, was down 2% for the fourth quarter and up 1% for the full year.

Adjusted operating margin increased 300 basis points to 26.8% in the fourth quarter, and increased 190 basis points to 26.1% for the full year compared with the 2007 periods.

“During 2008, we delivered on our commitments to substantially grow earnings and cash flow while integrating CheckFree, both in the face of a challenging market,” Jeffery Yabuki, president and chief executive officer of Fiserv. “Our outstanding free cash flow allows us to stay focused on serving clients exceptionally well and continue to invest in future growth opportunities. Although we are disappointed with the internal revenue growth in our financial segment, which was negatively impacted by lower home equity processing and discretionary license revenues, we continue to make great progress in building our base of recurring revenue. Our payments segment, which nearly doubled in revenue during 2008 to more than $2 billion, continues to deliver solid revenue and earnings growth.”

D.C.

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