Slowing Check Business Opening New Doors Says Deluxe CEO - Video - TheStreet

Slowing Check Business Opening New Doors Says Deluxe CEO

Deluxe Corp. (DLX) reported a 7% drop in revenue from its legacy check business when it reported third quarter results last month.
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Deluxe Corp. (DLX) reported a 7% drop in revenue from its legacy check business when it reported third quarter results last month, a near mirror image from the more than 6% jump in overall sales. Deluxe CEO Lee Schram said the small-business services provider is not slamming the door on its declining check business, but using it to open new ones. 'We are putting technology around everything we do with check, automating everything in our plants and giving the banks tools to use and manage and run their programs,' said Schram. 'Then we are trying to gain share both on the small business side where a lot of small business owners are still writing checks, as well as with the banks.' Deluxe reported third-quarter earnings of $56.9 million, or $1.13 per share, on revenue of $439.8. The company said it expects revenue in the range of $456 million to $466 million for the fiscal fourth quarter. Deluxe expects full-year earnings in the range of $4.51 to $4.57 per share, with revenue ranging from $1.77 billion to $1.78 billion. Schram said Deluxe has seen tremendous growth in its small business services segment. Revenue in that division was $289 million in the third quarter, up 3.9% year-over-year due primarily to growth in marketing solutions.