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Carreker Corporation Announces
Resolution of Accounting Issue
and Restatement of Certain Prior
Period Results
DALLAS (April 27, 2006) -- Carreker
Corporation (Nasdaq: CANI), a leading
provider of payments technology and
consulting solutions for the financial
services industry, announced today
that it will restate its audited
consolidated financial results for
the fiscal year ended January 31,
2004 and its consolidated balance
sheet at January 31, 2005 as a result
of the correction of a deferred revenue
accounting error, which was previously
announced on March 14, 2006. Accordingly,
these financial statements should
no longer be relied upon.
The correction
relates to an error identified in
deferred revenue and is primarily
attributable to the duplicate recording
of a customer software maintenance
contract in conjunction with an accounting
system conversion in October 2002.
Software maintenance revenue related
to this contract was erroneously
recognized twice during the year
ended January 31, 2004. This has
been identified as a material weakness
in management’s evaluation
of the Company’s disclosure
controls and procedures and, based
upon this evaluation; management
has concluded that the Company’s
disclosure controls and procedures
were ineffective for the relevant
periods. Management has established
specific processes and controls and
has modified others to provide reasonable
assurance that these measures, when
effectively implemented and maintained,
will remediate the material weakness.
Consistent with previous indications,
the net adverse impact on the consolidated
financial statements as of and for
the fiscal year ended January 31,
2004 will be a $2.0 million reduction
in software maintenance revenue and
net income. The consolidated balance
sheets at January 31, 2004 and 2005
will reflect a $2.0 million increase
in deferred revenue and a corresponding
increase in accumulated deficit.
As previously stated, the item is
not related to ongoing accounting
practices, does not impact future
results of operations and does not
affect the Company’s cash position.
As previously announced, the Company
expects to report fourth quarter
and fiscal year end 2005 financial
results on May 1st, 2006 after 4:00
pm Eastern Time.. Management will
subsequently host a conference call
and Web cast at 4:30 p.m. Eastern
Time to discuss the fourth quarter
and fiscal 2005 financial results
as well as other items of interest.
To join the conference call, dial
866-348-8664 in the United States
or 706-679-0430 internationally.
All participants enter code 5845508.
Additionally, a live Web cast of
the conference call will be available
through the investor relations section
of the Company’s Web site at
http://ir.carreker.com.
About Carreker Corporation
Carreker Corporation improves earnings for financial institutions around the world. The Company’s integrated consulting and software solutions are designed to increase clients’ revenues and reduce their expenses, while improving security and increasing the value of their customer relationships. Carreker provides products and services to more than 250 clients in the United States, Canada, the United Kingdom, Ireland, continental Europe, Australia, New Zealand, South Africa, South America, Mexico, and the Caribbean. Clients include the full range of community, regional and large banks, among them more than 75 of the largest 100 banks in the United States. Headquartered in Dallas, Texas since 1978, Carreker Corporation has offices in London and Sydney. For more information,
visit www.carreker.com.
Forward Looking
Statements
Except
for historical information, the statements
in this release constitute forward-looking
statements within the meaning of
the federal securities laws. These
statements are subject to numerous
risks and uncertainties that could
cause actual results to differ materially
as well as the risks and uncertainties
arising out of the restatement of
the Company’s consolidated
financial statements and also economic,
competitive, governmental and technological
factors affecting the Company’s
operations, markets, services, products,
sales, potential sales and prices.
For further information concerning
certain of these risks and uncertainties,
see under the caption “Risk
Factors” in the Company’s
most recent Form 10-K. We assume
no obligation to update or revise
any forward-looking statements, whether
as a result of new information, future
events or otherwise, except as may
be required by law. |
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