Earnings Decline At FidelityNational
JACKSONVILLE Fla. - (07/26/04) -- Fidelity National Financial Inc.,the diversified outsourcer for credit unions and banks, said netincome fell almost 11% for its fiscal second quarter to $222million, or $1.26 a share, as higher expenses ate into itsincreasing revenue base. The company, which has acquired ALLTELInformation Services, VISTA Information Solutions, Aurum Technologyand Sanchez Computer Associates over the past three years, saidrevenues rose 10% in the quarter to $2.2 billion, but expenses roseeven more, by 16%, to $1.8 billion. Through the first six months ofthe year, revenues rose 17% to $4 billion, but net income declined4% to $372 million, or $2.12 a share, compared to the first sixmonths last year. FNF plans to raise up to $500 million with thespin off the newly acquired outsourcing services into a separatecompany to be called Fidelity National Information Services.Separately, FNF said it has agreed to acquire a controlling 79%stake in Covansys Corp., a Farmington Hills, Mich.-based providerof offshore outsourcing services with India-based operations, for$131 million in cash.