Deluxe Hit By Move To ElectronicPayments

ST. PAUL, Minn. - (01/30/04) -- Check printer Deluxe Corp. said netincome for its fiscal fourth quarter declined 13% to $39.4 million,or 77 cents a share, from $52.3 million, or 84 cents a share, forthe same period the year before, as the company continues to feelthe affects of the move from checks to electronic payments.Fourth-quarter revenues for the nation's largest printer of checkswere down 2% to $300.5 million, and fiscal-year revenues fell 3% asthe decline in the company's core product line continued to hurtthe bottom line. Deluxe said it expects the decline in checks tocontinue at a rate of 3% to 4% this year. For the year the companyreported a 7% decline in financial services revenue to $163.9million; a 2% drop in direct checks revenue; and a 13% rise inbusiness services revenue to $64 million. Net income for the yearfell 10% to $192.5 million, or $3.49 a share, from $214.3 million,or $3.36 a share. The per share average was higher this yearbecause of the company's share buyback program which reduced totalshares outstanding.