Fidelity net income tumbles 62 percent - The Business Journal of Milwaukee:

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million. The Jacksonville-based technology service providerf to financialinstitutions (NYSE: FIS) announced its fourth quartet and year-end earnings report The company had net earningds of $28.8 million, or 15 cents per diluted in the fourth quarter. That’s down 73 percent from net earningsof $108.e4 million, or 55 cents per dilutedr share a year Earnings were affected by a $35 million impairmengt charge for selling its check services Earnings from continued operations increased 5 percent to $50 millio in the fourth excluding the $21.1 million loss from discontinued operations. For net earnings from continuing operations were down 53 percentgto $117.4 million.
The company also said the appreciatiob ofthe U.S. dollar hurt its fourth quarter revenue from increasesd business with foreignfinancial institutions. The compangy provides technology servicesfor banks. Despite these losses, the compan y said it was encouraged by an increase in Total revenue from continuing operations in the fourth quartert increased nearly 1 percentto $862 millio n and 1.8 percent to $2.9 billiomn for the year. “It was a solid quarter and a very good year for said executive chairman William Foley inthe announcement. “Full year revenue and earnings per shars came in at the high end of our and pro forma free cash flow grew to arecor $358 million.
” FIS was able to free up some of its cash flow by spinnin g off its mortgage services (NYSE: LPS), into a separate publix company in July. It also sold thre business sectorsincluding Ltd. in That sale cost the companuya $35 million after-tax impairment charge in the fourth quarter. Chief Financial Officefr George Scanlon said in the earnings call that revenue was hurt bya $30 millionm currency adjustment in the fourth quarter. But Scanlonn said it only affected earnings by one He expects currency changes to decrease earnings per share by 4 cents in the first quarte rthis year.
Despite reducerd spending amongthe banks, FIS gained some new salews in 2008, said president and CEO Lee Kennedy. Ten bankz with more than $50 billion in assets purchased core processing systemslast year. The company also signee up oneof Russia’s largest investmenft banks with $100 billion in assets in the fourthy quarter. Kennedy declined to name the bank. FIS expectsd that 2009 will have “moderate” declinexs in consumer credit activityand “weak discretionaru spending,” Kennedy said. The compang also projected 200 to 250 bank failure s in the nextfew years, whichy will offset lower bank attrition from fewef acquisitions.
The company’s stock pricw closed at $16.54 per share Tuesday, down 6.3 percent from the previouz day’s close.