FIS Earnings Weighed Down By 'Unauthorized' Card Activities

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Technology vendor Fidelity National Information Services Inc. said Tuesday that growth in processing revenue and electronic payments services helped the company increase its first-quarter revenue 12% from a year earlier to $1.4 billion.

The Jacksonville, Fla., company, which sells account management software, credit card processing and other services to banks, said its net income attributable to common stockholders fell 1% to $96.1 million. FIS reported net earnings per diluted share of 31 cents, up from 26 cents a year earlier.

The company's earnings were weighed down by a $13 million loss during the quarter related to "unauthorized activities" involving one client and 22 prepaid card accounts on its Sunrise technology platform, it said.

FIS said it determined that 7,170 prepaid accounts "may have been at risk" and that three individual cardholders' non-public information "may have been disclosed" as a result of the activities. The company has blocked and reissued cards for the affected accounts and is working with federal law enforcement officials on the issue.


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