Headlines:
A Down Quarter for Deluxe Corp. Bounced by NYSE, AirNet Now on Amex American Express to Use Sun Software
A Down Quarter for Deluxe Corp.
Profits and revenue at Deluxe Corp., the nation's largest check printer, fell in the fourth quarter because of a shift in demand for its check products.
The Shoreview, Minn., company said Thursday that its profit fell 17% from a year earlier, to $39 million, and revenue fell 9%, to $432 million. Its per-share earnings were 8 cents short of the estimate of the sole analyst who covers the company.
Check use has declined as consumers have turned to debit cards at the point of sale and online bill payment. Deluxe said it sold only $58 million of checks directly to consumers in the quarter, 14.7% less than a year earlier. Sales to banks were $117 million, down 22.5%.
Other negatives were a shift from fancy to simple checks and a shortage of holiday cards in its small-business unit, which led to higher costs and lost sales.
Full-year profits fell 20%, to $158 million, though revenue grew nearly 10%, to $1.7 billion. New England Business Service Inc. of Groton, Mass., acquired in June 2004, generated $308 million in sales, offsetting a $159 million decline in sales from Deluxe's check-printing business.
"We accomplished a great deal in 2005, but our efforts were overshadowed by a fourth quarter that did not meet our expectations," said Ronald E. Eilers, who was named interim chief executive in November, in a press release.
Deluxe said some new contracts with financial institutions that defected from rival suppliers will increase its share of the check printing market this year.
The company said it expects to earn 48 cents to 52 cents a share this quarter. For the full year it estimated $2.70 to $2.90; the analyst had forecast $3.50.
Bounced by NYSE, AirNet Now on Amex
Stock of AirNet Systems Inc., delisted by the New York Stock Exchange, is now trading on the American Stock Exchange.
The switch took place Wednesday morning. The ticker symbol remains ANS.
AirNet, of Columbus, Ohio, is the nation's largest courier of canceled checks. It also delivers American Banker.
The company was told in June that it did not meet the NYSE's newly raised standards for market capitalization and shareholder equity. The exchange agreed to delay delisting while the company pursued plans to go private.
AirNet announced plans in October to sell itself to an unnamed private equity firm but said in mid-December that the deal had fallen through.
American Express to Use Sun Software
American Express Co. has agreed to use Sun Microsystems Inc. software to develop integrated online applications and identity-management services.
Sun, of Santa Clara, Calif., announced the deal Wednesday. It covers Sun's Java Enterprise software and its Solaris operating system. American Express also hired Sun to provide some IT services.
Judy Tenzer, an American Express spokeswoman, said the Sun software will be used in projects serving employees and customers, but she would not provide details.
Phil Steitz, American Express's chief technology officer, said in Sun's press release that the Java software will improve the functionality and flexibility of the company's applications while reducing costs. Sun said the American Express contract will bring its total of Java Enterprise System subscribers to more than 1 million.
Java is a programming language that enables software to run on many operating systems. Jim McHugh, the senior director of software portfolio strategy at Sun, said that Java's open format lets users "roll out services faster." He would not discuss the value of the contract.
