Magazine article American Banker

In Brief: Carreker Reports a Loss, Cites Delays

Magazine article American Banker

In Brief: Carreker Reports a Loss, Cites Delays

Article excerpt

Carreker Corp. reported a loss for its fiscal third quarter, which ended Oct. 31, because Hurricane Katrina delayed some projects, which drove down revenue.

On Wednesday the Dallas check-processing and imaging software vendor reported a loss of $950,000, or 4 cents a share, compared with a profit of $513,000, or 2 cents a share, for the same period last year. Revenue declined 7%, to $28.4 million.

Carreker said customers postponed some consulting jobs and software installations because of the hurricane, but the vendor did not quantify the effect of those delays on its results.

The loss included a charge of $780,000, or 3 cents a share, to cover a reduction in head count. Carreker, which is restructuring its payments business, said the job cuts should annual lower labor costs by $2.4 million.

Fiscal third-quarter software licensing revenue was higher than the total in either of the first two quarters of the year. Carreker did not offer specific predictions for this quarter's software revenue and profits, except to say it expects the figures to be the best of the year.

Carreker has suffered financially in the past few years because banks have been slow to invest in imaging technology. Many banks are starting to settle checks through image exchange networks, but the shift is happening more slowly than Carreker and other technology vendors had expected.

John D. "Denny" Carreker, the company's chairman and chief executive, called the results "mixed" but said the cost-reduction efforts and upcoming products would help drive up revenue and profits. …

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