Transaction Systems Architects Inc., a developer of electronic payments and authorization software, has reported what one analyst called "abysmal" results for its second fiscal quarter.

The Omaha, Neb.-based company, which has more than 1,800 financial institution customers, generated only $75.4 million of revenue in the quarter that ended March 31; that figure is down 13% from the same quarter last year. Net income was $1.6 million, compared with $10.9 million. Its earnings of 5 cents a share were dramatically below Wall Street's expectations of 17 cents; a year earlier it earned 34 cents a share.

Mark Wolfenberger, an analyst at Credit Suisse First Boston, said the company still has a "deep value," despite its "disappointing" quarter. Transaction Systems' main drag is the lingering impact of the year-2000 sales slowdown, he said last week. Therefore, he said, he has kept his "strong buy" rating and $50 price target.

The stock, however, has suffered. It closed Friday at $16.3125, down 35% for the week. At such a price, an "outright sale" of the company may be in store, Mr. Wolfenberger said. A sale is as likely as the company's proposal to spin off several units, he said.

Gene Hinkle, a spokesman at Transaction Systems, said the company is "definitely not for sale" and is continuing with its spin-off plan.

Recently the company assembled a management team for its new "e-frastructure" business unit, which would be called In Session Technologies Inc. The unit expects to file for an initial public offering within six months.

Transaction Systems has five other spin-off candidates. One is its consumer banking group, which brought in 66% of company revenues in the quarter and includes its automated teller machine and point of sale business.

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