Financial services software maker InterCept (ICPT - Get Report) said PayPal (PYPL) has cancelled its contract with InterCept's wholly owned subsidiary Electronic Payment Echange, but the company said it didn't expect the cancellation to affect earnings.
PayPal filed a statement with the Securities and Exchange Commission saying it will transfer its credit card processing services to Wells Fargo (WFC) no later than November. The company informed InterCept that it expects to complete the transition in August, despite its contract with EPX running through Nov. 14. PayPal does not plan to transfer its international credit card services, but a new agreement for these services has not been reached with EPX.
InterCept said its monthly revenue from PayPal business averaged $185,000, but the company does not anticipate the loss of that business to have a material effect on its earnings. InterCept also reaffirmed its 2002 and 2003 guidance, saying it will see $1.15 to $1.17 a share in 2002 and $1.43 to $1.45 a share in 2003.
Shares of InterCept closed at $21.15 Wednesday before the news.