eFunds Corporation Reports Fourth Quarter and Full-Year 2005 Results

* Full-Year 2005 Diluted Earnings per share up 41% to $1.17 * Fourth Quarter 2005 Diluted Earnings per share of $0.27 versus $0.22 in 2004 SCOTTSDALE, Ariz., Feb. 22 /PRNewswire-FirstCall/ -- eFunds Corporation EFD, a leading provider of electronic payments, risk management and related outsourcing solutions, today reported its financial results for the fourth quarter and full-year ended December 31, 2005. Fourth Quarter For the fourth quarter of 2005, the Company reported net revenue of $138.0 million, an increase of approximately 6% over the net revenue of $130.5 million reported by the Company during the fourth quarter of 2004. Operating income increased 23% to $20.2 million, or 15% of net revenue, compared to $16.4 million, or 13% of net revenue, reported in the equivalent quarter of 2004. The Company reported diluted earnings per share for the fourth quarter of 2005 of $0.27 compared to $0.22 per diluted share reported in the fourth quarter of 2004. Full Year For the year ended December 31, 2005, the Company reported net revenue of $501.7 million, down 9% compared to the $552.1 million of net revenue reported in 2004. The decline in revenues in 2005 is reflective of the disposition of the Company's ATM deployment business in late 2004. This decline was partially offset by acquisitions completed by the Company in 2005 and organic growth in its continuing businesses. Reported operating income for the year ended December 31, 2005 was $75.2 million, or 15% of net revenue, as compared to $58.5 million, or 11% of net revenue, for the prior year. Diluted earnings per share increased 41% to $1.17 per diluted share, compared with $0.83 per diluted share reported by the Company in 2004. "2005 was a year of significant transformation for eFunds," stated Paul Walsh, Chairman and Chief Executive Officer. "After divesting our low-growth, low-margin ATM business in late 2004, we acquired the leading prepaid solutions provider in July 2005. As a result, we have improved the earnings and growth profile of our Company and we look forward to continuing this trend in 2006. Our goal for the next phase of our Company's development is to achieve sustainable double-digit revenue growth and 20% operating margins. We believe we are well positioned to achieve these targets following a very successful year in 2005," Walsh said. Forward Looking Statements The Company reported that it expects full-year net revenue for 2006 to increase approximately 15 - 25 percent over full-year 2005 net revenue. Diluted earnings per share are expected to be between $1.15 and $1.25 for 2006 after giving effect to the adoption of SFAS 123R, which requires the expensing of stock options beginning January 1, 2006. Excluding the impact of SFAS 123R, the Company's outlook equates to $1.26 - $1.36 per diluted share in 2006. The foregoing expectations reflect the following assumptions: * An effective tax rate of approximately 34 percent for 2006; Cash outlays for capital expenditures and product development activities will be somewhat higher than the amounts disbursed in 2005.Conference Call eFunds will hold a one-hour conference call today at 10:00 a.m. EST to discuss the Company's quarterly and year-to-date financial performance. To listen to the conference call, dial 800-399-5351. (International callers dial 706-643-1939.) The call will also be broadcast on the Company's Web site at www.efunds.com under the "Our Company/Investor Relations" tab. Interested parties are encouraged to click on the web cast link 10 to 15 minutes prior to the start of the conference call. Replay Information A replay of the conference call will be available beginning two hours after the call's completion and will play through 11:59 p.m. EST on March 8, 2006. You may access the replay by dialing 800-642-1687 (international callers dial 706-645-9291) and entering the Conference ID number 4945094. Additionally, a replay of the conference call will be available via the eFunds Web site at www.efunds.com. About eFunds eFunds Corporation is an industry leader with nearly 30 years of experience and expertise in electronic payments and risk management. eFunds leverages its business insight and domain expertise in these areas to develop comprehensive and effective electronic funds transfer and risk management solutions for financial institutions, electronic funds transfer networks, retailers, and government agencies around the world. Committed to providing excellent customer service and award-winning products, eFunds enables the world's leading businesses to acquire the right customers, serve them more efficiently and keep them. www.efunds.com. Statements made in this release concerning the Company's or management's intentions, expectations, or predictions about future results or events are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are necessarily subject to risks and uncertainties that could cause actual results to vary from stated expectations, and such variations could be material and adverse. Factors that could result in such a variation include, but are not limited to, the inherent unreliability of earnings and revenue growth predictions due to numerous factors, including many beyond the Company's control, potential difficulties, delays and unanticipated expenses inherent in the development and marketing of new products and services, competitive factors, the unpredictability of merger and acquisition activity, and the numerous risks and potential additional costs, disruptions and delays associated with the establishment of new business initiatives. Additional information concerning these and other factors that could cause actual results to differ materially from the Company's current expectations is contained in the Company's Quarterly Report on Form 10-Q for the period ending September 30, 2005. click here for full financial details from eFunds