Fiserv (FISV) Q4 1999 earnings summary

Executive summary

• FY1999 revenue reached $1.408B, up 14.1% YoY; net income was $137.9M and diluted EPS was $1.09.

• Annual results met growth expectations; management said sales, cross-sell and acquisition pipelines were accelerating across major business lines.

• Strategy centered on expanding financial-technology services across banking, lending, insurance, securities, trust and e-commerce.

Financial highlights

• FY1999 revenue was $1,407.5M vs. $1,233.7M in 1998; operating income was $253.1M vs. $209.6M.

• FY1999 net income was $137.9M vs. $114.3M; diluted EPS was $1.09 vs. $0.90.

• Q4 revenue was $374.5M, operating income $65.4M, net income $34.9M and diluted EPS $0.28; Q4 1998 figures were $339.1M, $54.5M, $29.6M and $0.23.

• Operating margin was 18.0% in 1999 vs. 17.0% in 1998; net margin was 9.8% vs. 9.3%.

• Acquisition businesses generated 45% of 1999 revenue growth; growth also came from new clients, cross-sales, higher client transaction volumes and price increases.

Outlook and guidance

• Management expected another strong year in 2000, with new-sale, cross-sale and acquisition pipelines accelerating.

• The 2000 effective income tax rate was expected to remain 41%.

• The Resources Trust Company acquisition, announced in 1999, was expected to close in Q1 2000.

• Operating cash flow and other available funding were considered adequate for funding requirements; significant acquisitions could require additional borrowing or securities issuance.