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NT1 - Net 1 UEPS Technologies, Inc - Net1 Clarifies Fiscal 2011 Guidance
Net 1 UEPS Technologies, Inc.
Registered in the state of Florida, USA
(IRS Employer Identification No. 98-0171860)
Nasdaq share code: UEPS
JSE share code: NT1
ISIN: US64107N2062
("Net1" or "the Company")
Net1 Clarifies Fiscal 2011 Guidance
Johannesburg, November 11, 2010 - Net 1 UEPS Technologies, Inc. (NasdaqGS:
UEPS; JSE: NT1) ("Net1" or the "Company") today announced that the Company
reiterates its guidance of Fundamental EPS of at least $1.50 on a constant
USD/ZAR currency basis for fiscal 2011, assuming the continuation of its
contract with SASSA on similar terms for the full year, but without giving
effect to the recent acquisition of KSNET in Korea. Net1 expects to complete
its pro forma financial statements to include KSNET and its purchase price
allocation in January 2011, at which point the Company will update its fiscal
2011 guidance to reflect KSNET. Net1 management continues to expect the KSNET
acquisition to be accretive to fundamental net income and fundamental earnings
per share.
Fundamental net income and fundamental earnings per share
The Company`s GAAP net income and earnings per share include amortization of
intangible assets and stock-based compensation. In addition, GAAP net income
and earnings per share for 1Q 2011 includes transaction-related costs and an
unrealized foreign exchange loss related to the acquisition of KSNET. The
Company excludes all of the above-mentioned amounts when calculating
fundamental net income and earnings per share, because management believes
that these adjustments enhance its own evaluation, as well as an investor`s
understanding, of the Company`s financial performance.
About Net1 (www.net1.com)
Net1 provides its universal electronic payment system, or UEPS, as an
alternative payment system for the unbanked and under-banked populations of
developing economies. Net1`s market-leading system enables the estimated four
billion people who generally have limited or no access to a bank account, to
enter affordably into electronic transactions with each other, government
agencies, employers, merchants and other financial service providers. Net1`s
universal electronic payment system, or UEPS, uses smart cards that operate in
real-time but offline, unlike traditional payment systems offered by major
banking institutions that require immediate access through a communications
network to a centralized computer. This offline capability means that users of
the Net1 system can enter into transactions at any time with other card
holders even in the most remote areas so long as a portable offline smart card
reader is available. In addition to payments and purchases, UEPS can be used
for banking, healthcare management, international money transfers, voting and
identification.
Net1 also focuses on the development and provision of secure transaction
technology, solutions and services and offers transaction processing,
financial and clinical risk management solutions to both funders and providers
of healthcare. Its core competencies around secure online transaction
processing, cryptography and integrated circuit card (chip/smartcard)
technologies are principally applied to electronic commerce transactions in
the telecommunications, banking, retail, petroleum and utilities market
sectors.
Net1 recently acquired KSNET, Inc. KSNET services a broad range of industries
in Korea, including credit card, retail and wholesale merchant, financial
institutions, governmental organizations, utility companies and e-commerce
businesses. It offers payment processing solutions including payment card and
banking value added networks, payment gateways, cash receipt, purchase cards
and point cards. It has a diverse merchant base and processed over 1.4 billion
transactions in 2009.
Net1 has a primary listing on the Nasdaq and a secondary listing on the JSE
Limited.
Forward-Looking Statements
This announcement contains forward-looking statements that involve known and
unknown risks and uncertainties. A discussion of various factors that cause
the Company`s actual results, levels of activity, performance or achievements
to differ materially from those expressed in such forward-looking statements
are included in the Company`s filings with the Securities and Exchange
Commission. The Company undertakes no obligation to revise any of these
statements to reflect future circumstances or the occurrence of unanticipated
events.
Investor Relations Contact:
Dhruv Chopra
Vice President of Investor Relations
Phone: +1-212-626-6675
Email: dchopra@net1.com
Johannesburg
11 November 2010
Sponsor:
Deutsche Securities (SA) (Proprietary) Limited
Date: 11/11/2010 09:24:01 Supplied by www.sharenet.co.za
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