Fidelity National Information Services Inc.'s (FIS)
first-quarter net income fell 53% as a year-earlier gain and the
stronger dollar made comparisons difficult for the
information-technology company.
President and Chief Executive Lee A. Kennedy warned that the
company expected the challenging market conditions to continue
throughout 2009. Still, Fidelity reaffirmed its earnings target of
$1.60 to $1.66 a share.
Earlier this month, Fidelity strengthened its presence in the
financial-information-technology market by acquiring Metavante
Technologies Inc. (MV) in a stock deal valued at $2.9 billion, with
Fidelity saying the deal would add to earnings in 2010. Major
ratings agencies reacted positively to the news, as both companies
have recurring revenue streams, which can help IT providers
mitigate the recession.
Fidelity reported net income of $33 million, or 17 cents a
share, down from $70.5 million, or 36 cents a share, a year ago.
Net earnings from continuing operations rose to 18 cents a share
from 6 cents, as the prior year's quarter included a $50 million
gain from discontinued operations.
Excluding items, earnings rose to 31 cents a share from 26
cents.
Processing and services revenue fell 3.9% to $797.8 million for
the financial data-process company, but would have risen 0.3% on a
constant-currency basis amid strong growth internationally.
In February, the company projected per-share earnings of 30
cents to 32 cents on revenue of $820 million to $830 million.
Shares were inactive in after-hours trading after closing down
0.7% at $18.72. The company's stock has gained two-thirds of its
value from its 52-week low in November.
-By John Kell, Dow Jones Newswires, 201-938-5285, john.kell@dowjones.com