Transaction Systems Surges

Second-quarter numbers impress.
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Transaction Systems Architects

(TSAI)

, an enterprise e-payments software and services provider, said for its second-quarter ended March 31 earnings rose 33.9% from the year-ago period, on increased revenue.

The Omaha, Neb.-based company earned $15 million, or 39 cents a share, in the quarter, compared with $11.2 million, or 29 cents a share, a year ago. Analysts surveyed by Thomson First Call were expecting earnings of 32 cents a share in the most recent quarter.

First-quarter revenue rose 18.8% from a year ago period to $89.8 million.

The company expects to earn $1.51 a share to $1.63 a share in the full year compared with its earlier forecast of $1.46 a share to $1.58 a share. Revenue for this year is expected to be $348 million to $360 million compared with its earlier guidance of $345 million to $360 million. Analysts were expecting earnings of $1.39 a share, on revenue of $349.7 million this year.

''Our international business is growing nicely, and we're having good success cross-selling a wide range of solutions into our customer base. Important industry mandates such as the Single European Payments Area and the EMV smart card initiative are creating new opportunities for us across the range of our enterprise payments portfolio," the company said.

First-quarter operating income rose 32.5% from a year ago period to $21.2 million and operating margin increased 244 basis points to $23.6 million.

The company said that for the quarter ended March 31, its 12-month backlog was $257.5 million compared with $254.4 million for the quarter ended December 31, 2005. The increase was due to continued strong sales activity, particularly in international markets.

During the quarter, the company added seven new customers and sold 15 new applications to existing customers.

The stock rose $3.52 to $38.80 Wednesday.

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