ATLANTA, Nov. 15, 2004 (PRIMEZONE) -- Harland Financial Solutions, Inc., a wholly owned subsidiary of John H. Harland Company (NYSE:JH), has acquired Fair Isaac Corporation's (NYSE:FIC) core processing business based in Heathrow, Florida. Terms of the agreement were not disclosed.
The acquisition includes the Phoenix System, an integrated core banking solution that operates in both the Windows(R) NT and Unix environments, features open relational database choices and leverages the latest Internet and network technology to optimize delivery channel integration. The Phoenix System is delivered in both in-house and service bureau configurations. Also included in the transaction are the Phoenix Internet Banking System, also known as IBANK, and the TradeWind international trade finance management system.
Harland Financial Solutions currently delivers in-house and outsourced core processing technology to more than 1,000 banks, thrifts and credit unions. More than 5,000 other clients are served by the company's leading branch automation, lending, mortgage, customer relationship management, item processing, electronic document management and business intelligence solutions. Harland Financial Solutions' market presence extends to many Phoenix System clients who already use the company's Encore!(R) branch automation, Touche(R) CRM, CheckQuest(R) item processing and LaserPro(R) Compliant Lending solutions.
"The Phoenix System will allow us to serve the mid-to-large community bank & thrift market not currently addressed by our turnkey SPARAK(R) core system, which is very popular with smaller community banks," said John O'Malley, president of Harland Financial Solutions. "By integrating our full suite of products with the Phoenix System, we continue to pursue the strategy of offering our clients and prospects the most integrated end-to-end systems available, while remaining open to other third party solutions. This acquisition also provides us with a proven service bureau delivery option for banks & thrifts, which is a significant expansion to the breadth of our current offering."
Internationally, the Phoenix System is currently used by banks, building societies and credit unions, enabled by its support for multiple currencies, languages and interest accrual methodologies.
"The sale of our Phoenix business helps us to continue delivering effectively on our mission of providing analytics-powered solutions, software and services that result in smarter decision strategies across the entire customer lifecycle," said Tom Grudnowski, chief executive officer, Fair Isaac Corporation. "At the same time, we've achieved our goal of placing our Phoenix System, Phoenix Internet Banking System and TradeWind clients, and the experienced employees who support them, in the hands of an acknowledged leader in the core systems and broader financial technology industry."
While Harland expects the acquisition to be mildly dilutive to 2004 diluted earnings per share, the company reaffirms its expectation for earnings to be in the range of $1.86 to $1.91 per share.
CuServ is a trademark, and SPARAK, ULTRADATA, Encore!, Touche, CheckQuest and CaptureQuest are registered trademarks of Harland Financial Solutions, Inc. All other brands and products or services are trademarks and/or service marks of their respective owners, may be registered, and should be treated appropriately.
About Fair Isaac
Fair Isaac Corporation (NYSE:FIC) is the preeminent provider of creative analytics that unlock value for people, businesses and industries. The company's predictive modeling, decision analysis, intelligence management, decision management systems and consulting services power billions of mission-critical customer decisions a year. Founded in 1956, Fair Isaac helps thousands of companies in over 60 countries acquire customers more efficiently, increase customer value, reduce fraud and credit losses, lower operating expenses and enter new markets more profitably. Most leading banks and credit card issuers rely on Fair Isaac solutions, as do insurers, retailers, telecommunications providers, healthcare organizations and government agencies. Through the www.myFICO.com website, consumers use the company's FICO(R) scores, the standard measure of credit risk, to manage their financial health.
About Harland Financial Solutions
Harland Financial Solutions (www.harlandfinancialsolutions.com) supplies software and services to thousands of financial institutions of all sizes, offering its solutions in both an in-house and service bureau environment. Harland Financial Solutions is a leader in deposit & loan origination, platform, teller, call-center, mortgage, business intelligence, core systems, check imaging, item processing, document management, customer relationship management, and compliance training software.
About Harland
Atlanta-based John H. Harland Company (NYSE:JH) (www.harland.net) is listed on the New York Stock Exchange under the symbol "JH." Harland is a leading provider of software and printed products to the financial institution market. Harland's software solutions include, deposit & loan origination, platform, teller, call-center, mortgage, business intelligence, core systems, and customer relationship management systems. Harland's printed products offerings include checks, direct marketing and financial forms. Scantron Corporation (www.scantron.com), a wholly owned subsidiary, is a leading provider both paper and electronic-based services and systems for the collection, management and interpretation of data to the financial, commercial and educational markets.
RISK FACTORS AND CAUTIONARY STATEMENTS
This press release contains statements, which may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of John H. Harland Company and members of its management, as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and that the actual results may differ materially from those contemplated by such forward-looking statements. Such differences could be material and adverse.
Many variables will impact the ability to achieve sales levels, improve service quality, achieve production efficiencies and reduce expenses in Printed Products. These include, but are not limited to, the successful implementation of major new accounts and the continuing upgrade of our customer care infrastructure and systems used in the Company's manufacturing, sales, marketing, customer service and call center operations.
Several factors outside the Company's control could negatively impact check revenues. These include the continuing expansion of alternative payment systems such as credit cards, debit cards and other forms of electronic commerce or online payment systems. Check revenues may continue to be adversely affected by continued consolidation of financial institutions, competitive check pricing including up-front contract incentive payments, and the impact of governmental laws and regulations. There can be no assurances that the Company will not lose additional customers or that any such loss could be offset by the addition of new customers.
While the Company believes growth opportunities exist in the Software and Services segment, there can be no assurances that the Company will achieve its revenue or earnings growth targets. The Company believes there are many risk factors inherent in its software business, including but not limited to the retention of employee talent and customers. Also, variables exist in the development of new software products, including the timing and costs of the development effort, product performance, functionality, product acceptance, competition, the Company's ability to integrate acquired companies, and general changes in economic conditions or U.S. financial markets.
Several factors outside of the Company's control could affect results in the Scantron segment. These include the rate of adoption of new electronic data collection, testing and assessment methods, which could negatively impact current forms, scanner sales and related service revenue. The Company continues to develop products and services that it believes offer state-of-the-art electronic data collection, testing and assessment solutions. However, variables exist in the development of new testing methods and technologies, including the timing and costs of the development effort, product performance, functionality, market acceptance, adoption rates, competition, and the funding of education at the federal, state and local level, all of which could have an impact on the Company's business.
Reference should be made to the Risk Factors and Cautionary Statements section of Harland's Form 10-K and Form 10-Q for additional information. Harland undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.