Quarterly earnings fell at the financial technology company FIS (NYSE: FIS) as rising expenses swallowed up an increase in revenue.
FIS reported net income of $109 million for the second quarter, down 29% from the same period in 2012, as processing and services revenue rose but other expenses drove down profits.
Other expenses rose 90%, to $111.3 million, while interest expense fell 13%, to $49.4 million. Meanwhile, gross profit rose 2%, to $484.3 million, as processing and servicing revenues rose 4% to $1.5 billion. Cost of revenues rose 5% to $1 billion.
Revenue from the financial solutions unit rose 4%, to $587 million, while revenue from the payments unit increased 3%, to $623 million. Revenue from its international operations rose 6%, to $304 million.
FIS had $653 million of cash and $4.8 billion of debt as of June 30, it said. It announced the results Tuesday.