Target’s Card Profit Rises 53% Y/Y

Target reported that its pre-tax credit card profits for the quarter ending July 30th increased 53% over the year-ago quarter. Credit card outstandings for the quarter increased 11% year-on-year, exceeding $6.0 billion. Target’s second calendar quarter pre-tax credit card profits were $168 million, compared to $162 million in the prior quarter and $110 million one-year ago. Target reported that its total credit card receivables, which include its VISA and “Guest” cards, were $6.041 billion as of July 30th, compared to $5.421 billion one-year ago. Delinquency (90 days+) for 2Q/06 increased to 3.4%, compared to 3.0% in the prior quarter and the one-year ago quarter. Charge-offs were 4.6% for 2Q/06 compared to 4.3% in the prior quarter and 7.2% one-year ago. Target’s credit card unit had revenues of $273 million in 2Q/06, a 25% increase over 2Q/05. For complete details on Target’s latest performance, visit CardData ([www.carddata.com][1]).

TARGET CARD LOAN HISTORICAL
(Excludes Mervyn’s & Marshall Field’s)
2Q/05: $5.421 billion
3Q/05: $5.544 billion
4Q/05: $6.177 billion
1Q/06: $5.844 billion
2Q/06: $6.041 billion
Source: CardData (www.carddata.com)

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

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ECHO Revenues Soar 39% in 2Q/06

Camarillio, CA-based Electronic Clearing House reported that second quarter revenue rose 39% to $19.9 million. Bankcard and transaction processing revenue grew 43% to $15.1 million, while bankcard processing volume increased 57.5% to $472.1 million. ECHO also reported that ACH transactions processed increased 18.5% to 9.3 million transactions. Processing and transaction expense increased 46.9% in the third quarter of fiscal 2006 to $13.3 million, up from $9.1 million in the comparable 2005 quarter. ECHO says the key to the quarter’s performance was solid organic growth from its existing merchants, continued performance from its historic sales channels and careful control over its operating costs. During the quarter ECHO received a “Notice of Allowance” for a new patent covering Internet-based check cashing and clearing. The Company also settled litigation over LML’s three electronic check conversion patents. Additionally, ECHO signed a three-year agreement extending its long-standing partnership with EZCheck Check Services. For complete details on ECHO’s latest performance, visit CardData ([www.carddata.com][1]). (CF Library 4/3/06; 4/13/06; 4/18/06)

ECHO REVENUE HISTORICAL
2Q/05: $14.3 million
3Q/05: $15.2 million
4Q/05: $16.9 million
1Q/06: $19.2 million
2Q/06: $19.9 million
Source: CardData (www.carddata.com)

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

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LIPMAN 2Q/06

Rosh Haayin-based Lipman Electronic Engineering reported revenues of $62.8 million, a 7.7% increase over the year ago quarter.
The electronic transaction systems provider says the growth was powered by growth in Spain and China. Net income for the quarter was $7.5 million, compared to net income of $7.4 million in the second quarter of 2005. The Company says the proposed acquisition of Lipman by Verifone is proceeding according to plan and is on track to close October 31st. VeriFone is paying US$793 million in cash and stock for Lipman. For more details on Lipman’s latest results, visit CardData (www.carddata.com).

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Issuers Need Benchmarking to Survive

A consulting group says credit card issuers need benchmarking to remain competitive. NY-based Auriemma Consulting Group says by exchanging information on core operational activities such as collector promise rates or call center abandon rates, or emerging trends such as the adoption of new regulations or new technologies, and even specialized issues such as treatment strategies for Hurricane Katrina victims, issuers can constantly refine their business model and achieve the desired balance between customer experience and profitability. ACG says it conducted over 100 benchmark studies last year, and is on track to exceed that number this year. ACG also produces a publication called “CardBeat.” CardWeb.com transferred the domain name cardbeat.com to ACG several years ago as a courtesy. However, the Website remains inactive.

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eFunds Revenue Up 14%; Profits Fall 23%

AZ-based eFunds reports that second quarter net revenue increased 14% to $132 million, compared to the same quarter of 2005. However, second quarter net income was $10 million, a 23% decline over 2Q/05. The Company posted a 21% year-on-year gain in its U.S. Payments segment with $68.1 million in revenue. The International segment soared by 53% to $17.9 million. However, the U.S. Risk Management segment sank 4% to $46.4 million. The Company re-affirmed its previously published guidance that 2006 diluted earnings per share will be between $1.15 – $1.25 and reported that it now anticipates that 2006 net revenues will increase 11% to 15% over 2005 net revenues. For complete details on eFunds’ second quarter performance, visit CardData (w[www.carddata.com][1]).

eFunds Revenue Historical
2Q/04: $140.7 million
3Q/04: $140.1 million
4Q/04: $130.5 million
1Q/05: $114.2 million
2Q/05: $116.3 million
3Q/05: $133.2 million
4Q/05: $138.0 million
1Q/06: $139.7 million
2Q/06: $132.4 million
Source: CardData (wwww.carddata.com)

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

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