Headlines:
S1 Has No Interest in Selling
S1 Corp. says it has no plans to sell itself, despite calls from a significant shareholder urging it to do so.
The Atlanta banking technology vendor said Friday that it believes its "business plan is just starting to show results, and that the long-term best interest of all shareholders will be served by executing on that business plan, rather than selling the company now at a time when shareholders will not receive the value embedded in this business."
Last week the New York investment management firm Ramius Capital Group LLC said that it led an investor group that acquired 5.1 million shares, or 7.2% of S1, and that selling the company was the best way to generate shareholder value.
S1's stock surged 8.5% on the news, closing Thursday at $4.71.
On Friday, Ramius said that it had increased its stake to 8.6%, and it reiterated its call for a sale.
S1 said it would "provide greater detail about our future plans and strategy in the coming weeks" and would listen to shareholder feedback at that time.
Last year S1 had a net loss of $1.1 million, compared with net income of $15.6 million in 2004. Its revenue fell 1%, to $204.1 million.
In July, S1 ousted its chief executive, Jaime Ellertson. He was succeeded by James S. "Chip" Mahan 3d, an S1 co-founder who was also Mr. Ellertson's predecessor. Since then Mr. Mahan has initiated cost-cutting efforts and restructured the company to revive growth.
In August, S1 shifted the pricing of its flagship product line, Enterprise, to a subscription model, which creates a more steady revenue stream but delivers less cash up front. In the fourth quarter it spent $10.8 million on restructuring.
AirNet Posts Profit; Revenue Up
The struggling Columbus, Ohio, air courier AirNet Systems Inc. reported a fourth-quarter profit and increased revenue, stemming from increased demand for its passenger charter services and higher fuel surcharges.
AirNet's main business, delivering checks for banks, has been hurt by the decline in consumer check volume. (The company also delivers American Banker.)
Last week the company reported fourth-quarter net income of $116,000, versus a loss of $4.2 million a year earlier. Revenue rose 0.3%, to $48.5 million.
For the full year, AirNet reported a loss of $4.2 million, compared with $34.1 million in 2004. Revenue rose 12.3%, to $196.4 million.
Revenue for AirNet's delivery unit rose 2.2% for the fourth quarter, to $41.7 million, and 7% for the full year, to $166.1 million. The company said much of the full-year increase came from a $10.3 million jump in fuel surcharge revenue.
Bank delivery revenue rose 3.8% for the quarter, to $28.4 million, and 7.2% for the full year, to $113.7 million.
Revenue from the passenger charter unit rose 59.3% for the full year, to $29.5 million, but fell 8.3% for the quarter, to $6.4 million.
In January 2005, AirNet hired the Chicago investment bank Brown Gibbons Lang & Co. as its strategic adviser. Brown recommended in May that the company seek a buyer, and a private equity firm considered buying it, but the deal fell apart in December.
AirNet said last week that it would retain Brown on a month-to-month basis to consider "various strategies and opportunities to enhance shareholder value and de-leverage the business."
