CheckFree Corporation Completes Sale of M-Solutions to Informa Investment Solutions, Inc.
February 06 2006 - 10:35AM
PR Newswire (US)
ATLANTA, Feb. 6 /PRNewswire-FirstCall/ -- CheckFree Corporation
(NASDAQ:CKFR) today announced that it has completed the sale of the
assets of its M-Solutions business unit, a part of the CheckFree
Investment Services division, to Informa Investment Solutions,
Inc., a wholly owned subsidiary of Informa Financial Information,
Inc. The M-Solutions unit is based in Durham, North Carolina, and
its product line includes M-Search(R), CheckFree M-Pact and
M-Watch(R). CheckFree will continue to support the investment
management industry with CheckFree APL(SM), GIM and CheckFree
EPL(TM) (Enhanced Portfolio Lifecycle), the Company's
next-generation platform that will deliver superior business,
operational and cost efficiencies to broker/dealer firms, money
managers and registered investment advisors. Terms of the deal were
not immediately disclosed. For fiscal 2006, excluding a one-time
gain on disposition, CheckFree expects the transaction to be
neutral to GAAP earnings per share and modestly dilutive to
underlying earnings per share and free cash flow. For the third
quarter of fiscal 2006, CheckFree expects the divestiture to reduce
revenue for the partial quarter by nearly $1.5 million and be
nominally dilutive to both GAAP and underlying earnings per share.
For the quarter, the Company now expects revenue of $216 to $221
million. About Informa Informa is a leading international provider
of specialist information for the academic, professional and
business communities. Informa has over 121 offices in 43 different
countries and employs almost 7000 staff with major centres in the
UK and the USA. Informa is a FTSE-250 company quoted on the London
Stock Exchange. About CheckFree (http://www.checkfreecorp.com/)
Founded in 1981, CheckFree Corporation (NASDAQ:CKFR) provides
financial electronic commerce services and products to
organizations around the world. CheckFree Electronic Commerce
solutions enable thousands of financial services providers and
billers to offer their customers the convenience of receiving and
paying their household bills online or in person through retail
outlets. CheckFree Investment Services provides a broad range of
investment management solutions and outsourced services to
thousands of financial services organizations, which manage about
$1.3 trillion in assets. CheckFree Software develops, markets and
supports software applications that are used by financial
institutions to process more than two thirds of the 12 billion
Automated Clearing House transactions in the United States. The
division also provides operational risk management, financial
messaging, corporate actions, and regulatory compliance software to
more than 1,500 organizations across the globe. Certain of
CheckFree's statements in this press release are not purely
historical, and as such are "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995.
These include statements regarding management's intentions, plans,
beliefs, expectations or projections of the future, and include
statements regarding forecasts and expectations of revenue for the
third quarter of fiscal 2006, earnings per share for the third
quarter of fiscal 2006 and fiscal 2006 as a whole (paragraph 2 of
the press release). Forward-looking statements involve risks and
uncertainties, including without limitation, the various risks
inherent in CheckFree's business, and other risks and uncertainties
detailed from time to time in CheckFree's periodic reports filed
with the Securities and Exchange Commission, including CheckFree's
Annual Report on Form 10-K for the year ended June 30, 2005 (filed
September 2, 2005), and Form 10-Q for the quarter ended September
30, 2005 (filed November 8, 2005). One or more of these factors
have affected, and could in the future affect CheckFree's business
and financial results in future periods, and could cause actual
results to differ materially from plans and projections. There can
be no assurance that the forward-looking statements made in this
press release will prove to be accurate, and issuance of such
forward-looking statements should not be regarded as a
representation by CheckFree, or any other person, that the
objectives and plans of CheckFree will be achieved. All
forward-looking statements made in this press release are based on
information presently available to management, and CheckFree
assumes no obligation to update any forward-looking statements. Use
of Non-GAAP Financial Information CheckFree supplements its
reporting of revenue, income (loss) from operations, net income
(loss) and earnings (loss) per share information determined in
accordance with GAAP by using "underlying revenue," "underlying
income (loss) from operations," "underlying net income (loss)" and
"underlying earnings (loss) per share." Management believes that
certain non-cash adjustments to revenue or expense enhance
CheckFree's evaluation of its performance, and are not pertinent to
day to day operational decision making in the business. Therefore,
CheckFree excludes these items from GAAP revenue, income (loss)
from operations, net income (loss) and earnings (loss) per share in
calculating underlying revenue, underlying income (loss) from
operations, underlying net income (loss) and underlying earnings
(loss) per share. Examples of such non-cash charges may include,
but not be limited to, intangible asset amortization expense and
in-process research and development costs associated with
acquisitions, charges associated with the impairment of intangible
assets, charges resulting from warrants issued to third parties,
and charges associated with reorganization activities, all offset
by the cumulative tax impact of these charges. CheckFree excludes
these items in order to more clearly focus on the factors it
believes are pertinent to the daily management of its operations,
and management uses underlying results to evaluate the impact of
operational business decisions. CheckFree regularly reports
underlying results to its Chairman and Chief Executive Officer, the
Company's chief operating decision maker, who uses this information
in allocating resources to CheckFree's various business units.
Additionally, as CheckFree rewards its management for their
decisions that increase revenue and decrease controllable costs,
the Company uses underlying revenue and underlying income (loss)
from operations as factors in determining short-term incentive
compensation for management, and uses underlying revenue,
underlying net income (loss) and underlying earnings (loss) per
share as factors in determining long-term incentive compensation
for management. Because CheckFree utilizes underlying financial
results in the management of its business and to determine
incentive compensation for management, the Company believes this
supplemental information is useful to investors for their
independent evaluation and understanding of the performance of the
Company's management and its core business performance. CheckFree's
underlying revenue, underlying income (loss) from operations,
underlying net income (loss) and underlying earnings (loss) per
share should be considered in addition to, and not as a substitute
for, revenue, income (loss) from operations, net income (loss) or
earnings (loss) per share or any other amount determined in
accordance with GAAP. CheckFree's measures of underlying revenue,
underlying income (loss) from operations, underlying net income
(loss) and underlying earnings (loss) per share reflect
management's judgment of particular items, and may not be
comparable to similarly titled measures reported by other
companies. First Call Analyst: FCMN Contact: DATASOURCE: CheckFree
Corporation CONTACT: Media relations, Judy DeRango Wicks,
+1-678-375-1595, or , or Investor relations, Tina Moore,
+1-678-375-1278, or , both of CheckFree Corporation Web site:
http://www.checkfreecorp.com/
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