Coinstar Second Quarter Revenues Climb 5%

WA-based Coinstar reported that second quarter revenues grew 5% to $137.4 million. However, net income slipped 21% to $3.3 million. The Company posted adjusted earnings of $0.21 per share, 9 cents better than estimates. Included in GAAP net income for the second quarter were certain non-cash charges including $1.8 million in amortization of intangible assets, $1.6 million in non-cash stock based compensation, and $0.9 million related to the Companyâ™s portion of non-cash losses associated with investments in DVD kiosk companies and amortization of financing fees. Excluding these items, net of taxes, Coinstar reported adjusted net income of $5.8 million. Coinstar noted that coin processing, DVD kiosks and e-payment all made significant progress during the period, although its entertainment category continued to face challenges. The Company reported that its installed base of coin machines hit 14,200 at mid-year, compared to 13,100 one-year ago. Coin-to-Card, e-payment and e-certificate enabled machines topped 8,900 as of June 30th, compared to 6,700 for 2Q/06. For complete details on Coinstar’s second quarter performance, visit CardData ([www.carddata.com][1]).

[1]: http://www.carddata.com

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Cardways Find Gift Cards Peak for Birthdays

A survey commissioned by Cardways.com reveals that 81% of men and women prefer to receive gift cards for their birthday. Birthdays are the No. 1 occasion driving gift card sales. Nearly 90% of people agree the primary reason for purchasing gift cards is the desire for the recipient to get what they want and 55% purchase gift cards to avoid worrying about the gift’s color or size. The survey also noted that of the 81% who chose gift cards for the top birthday gift, respondents ages 35-54 favor them most. Across all age groups, women prefer gift cards more than men and that men are nearly twice as likely as women to spend more money on a spouse or significant other while women are more likely to spend more on children or grandchildren. According to financial research and advisory firm, TowerGroup, combined 2006 gift card sales in the U.S. reached approximately $80 billion. Cardways.com offers online gift card and personalized greeting cards.

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AEX Commercial Financing Offers Alternatives

AEX Commercial Financing Group announced that it has published a specialized website to focus on the unique problems associated with business cash advance and credit card processing programs. The AEX business financing website provides solutions for implementing cost improvements to credit card processing and working capital management functions. The new AEX working capital and business cash advance site describes ten common business financing problems experienced with credit card financing and credit card processing. AEX Commercial Financing Group specializes in difficult commercial loan situations and provides business financing throughout the United States.

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Hypercom Revenues Up 2%; Gross Profit Sinks

Hypercom posted a 2% increase in revenue for the second quarter compared to the year-ago quarter and a net loss of $5.7 million compared to $6.3 million in net income for 2Q/06. Gross profit fell more than 200% to $8.7 million. The profit drop was attributable to charges for non-PCI compliant products and components; a product warranty settlement paid to a European customer; costs associated with the transition to contract manufacturing; and a write-off of capitalized software. Hypercom said that global price pressure has reduced average selling prices in virtually all terminal categories. The Company also noted that it faced a change in the mix of product sales from older, cost-reduced, high margin “T7Plus” terminals, to lower margin, newer terminals such as the “T2100” and “L4100.” New terminals have traditionally been introduced at higher cost with the assumption that they will be cost engineered over time, raising gross margins. During the second quarter, Hypercom introduced a new global countertop terminal family comprised of six 32-bit, PCI PED-approved, multi-application payment terminals; featuring a common form factor with the highest security, largest memory, “Apriva” “Class A” certified the “Optimum M4100” on Apriva’s “Intelligent Gateway”; and introduced the “SmartPayments Payment Processing Suite,” an electronic payment processing solution that integrates into PC-based POS systems without any integration requirements related to POS hardware, allowing for Microsoft Windows-based POS systems to accept all forms of electronic payments. For complete details on Hypercom’s second quarter results, visit CardData ([www.carddata.com][1]). (CF Library 3/20/07)

HYPERCOM REVENUE HISTORICAL
2Q/05: $60.2 million
3Q/05: $66.5 million
4Q/05: $68.1 million
1Q/06: $61.0 million
2Q/06: $66.1 million
3Q/06: $56.7 million
4Q/06: $64.8 million
1Q/07: $64.8 million
2Q/07: $67.5 million
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

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Shift4 and SoftBrands Team for Hotels

Shift4 Corporation and MN-based SoftBrands have partnered to offer the hotel industry alternatives to processing credit, debit and gift card transactions SoftBrands is currently in development with Shift4 to offer a Payment Card Industry-compliant payment gateway that accepts and processes transactions quickly, accurately and securely. SoftBrands provides software solutions for businesses in the manufacturing and hospitality industries worldwide. Shift4 is a developer of secure financial transaction processing software and services, provides web-based, real-time enterprise payment solutions for leaders in the hospitality, retail, foodservices, auto rental and e-commerce markets.

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MASTERCARD 2Q/07

MasterCard’s worldwide growth rate in quarterly gross dollar volume increased 13.3% in 2Q/07 to $555 billion. Worldwide, MasterCard’s debit programs were up 19% in 2Q/07 GDV. Europe, the second largest region for MasterCard, posted a 14% rise in second quarter GDV to $157 billion from 164 million cardholders. Asia-Pacific reported GDV of $73 billion and 164 million cardholders. Latin America, which has 91 million cardholders, had $37 billion in second quarter volume, a 22% gain. Canada experienced a 16% rise in Q2 GDV of $22 billion and 34 million cardholders. The South Asia/Middle East/Africa region posted $10 billion in gross dollar volume, a 45% increase, from 29 million cardholders. As of June 30th, the Company’s customers had issued 855 million MasterCard cards worldwide, an increase of 11% over the same period in 2006. MasterCard now has 25.4 million acceptance locations worldwide. For complete details on MasterCard’s second quarter results, visit CardData (www.carddata.com).

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Natalie Gulbis Gift MasterCard is Launched

Payment Data Systems has introduced the LPGA player Natalie Gulbis Gift MasterCard issued by Metabank. The 24-year-old Gulbis is one of the LPGA Tour’s most popular players and is among the top five of Advertising Age’s most marketable young athletes. She pens a popular online diary on her personal website, has started the third season of her Golf Channel reality television show, will release her 5th calendar in 2008, and is a featured character in a Tiger Woods video game. Customers will be able to choose from a series of card designs to be purchased online at http://www.nataliecard.com. Payment Data Systems is an integrated payment solutions provider to merchants and billers. MetaBank is a federally chartered savings bank.

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ADS & KATZ GROUP

Katz Group Canada’s Rexall/Pharma Plus pharmacies has signed a sponsorship
agreement Alliance Data’s “Canadian AIR MILES”. With this development,
consumers can earn reward miles at the pharmacy locations to redeem for
more
than 800 different products such as travel, movie passes, entertainment
attractions,
electronic merchandise and more. Alliance Data provides marketing, loyalty
and transaction services for over 120 million consumer relationships and
manages
customized business solutions. The company employs over 9,000 associates at
more than 60 locations worldwide. Katz group Canada has 200 Rexall/Pharma
Plus locations throughout Ontario.

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Crown Financial Offers Credit Card Factoring

Crown Financial Services has announced their new program, “Working Capital to Grow Your Business”, detailing the use of a merchant cash advance program or credit card receivables funding. Some of the key advantages of credit card receivables funding over other forms of financing are: no long application process, 24 hour approvals, cash in 7-10 working days, no application fees, no tax returns needed, no business plan needed, no closing costs, no fixed payment terms, no fixed time, no hassles. Typically a merchant can obtain between $5,000 and $300,000 per location. According to the latest statistics from Equifax, there are more than 18 million small businesses in the US. A high percentage of those small business owners are digging into personal savings, taking out home equity loans, borrowing from family and friends and running up credit card bills as forms of financing. All of these options require the business to take on additional debt. Collection of the purchased credit card sales occurs automatically through the credit card processor, which sends the funding company a small fixed, predetermined percentage from each credit card sale.

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SCANTEC & ZEBRA CARD

Scantec has joined the Zebra Card Printer distribution network to
support the growing popularity of plastic card printers in South Africa.
The company will offer the Zebra card product portfolio with training,
product integration, and support in key vertical markets. Scantec
provides hardware solutions to resellers in various service markets in
South Africa. Zebra Technologies delivers on-demand printing solutions
to businesses and governments in 100 countries around the world.

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PULSE Expands BofA Relationship; Inks a PA Bank

PULSE EFT Association has signed a new agreement with Bank of America to renew and expand their relationship. PULSE will provide PIN debit network services to the bank’s debit cardholders on the West Coast and throughout Texas, New Mexico and Arkansas. In addition, Bank of America’s Texas ATMs will continue to be a part of PULSE. Also, PA-based Adams County National Bank has entered into a long-term agreement with PULSE EFT Association for debit card transaction switching and settlement. The bank, which has 21 retail banking locations in Adams and surrounding counties, now utilizes PULSE exclusively for PIN debit purchases and plans to introduce a new payment option to selected customers through the issuance of Discover Debit cards. The bank also utilizes PULSE for ATM transactions. Adams County National Bank operates an ATM network of 19 sites throughout its marketplace.

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Edentify and FNB Merchants Integrate Solutions

Edentify has entered into a new partnership with FNB Merchants to incorporate its proprietary IDAlert identity fraud monitoring software into FNBM’s four-service (education, monitoring, insurance, and recovery) identity theft protection program. This partnership brings Edentify’s technology to FNBM’s client financial institutions nationwide. In addition, FNBM will replace its current recovery service with Edentify partner National ID Recovery’s (NIDR) advanced remediation tool. The combination of these two potent technology services further strengthens FNBM’s identity theft protection program, and improves FNBM’s recovery process. Edentify develops and deploys data analysis technology solutions for preventing identity theft and fraud. National ID Recovery is a privately held company with extensive experience in identity theft, security, information technology, management and compliance.

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