Oct. 28--It was another "challenging" quarter for TSYS as the global credit-card processor's third-quarter profit dropped 14 percent. The company reported net income of $55.3 million, or 29 cents per share, for the three-month period ending Sept. 30. That compares to $64.4 million, or 32 cents per share, during the same quarter a year ago.

The earnings per share met the expectations of a dozen stock market analysts polled by Thomson Reuters.

Total revenue for the third quarter was off 1.6 percent at $432.2 million.

Phil Tomlinson, TSYS chairman and chief executive officer, noted that "despite the challenging economic environment," his firm did report modest increases in total revenue, operating income and net income from the second to third quarters.

Tomlinson also mentioned TSYS is flush with cash and looking to buy other companies that might help grow his firm's business. The company added $76 million to its cash reserves during the quarter and $209 million year to date for a total of $420 million.

"Our accumulation of cash during these tough economic times is part of our plan to build a large capital base to deploy in support of our strategic plans," Tomlinson said. "We have been aggressively pursuing acquisition opportunities around the globe and are confident we will accomplish this very important part of our corporate strategy."

For TSYS, which is headquartered in Columbus and employs about 4,400 locally, it was the third straight decline in net income. The company's profit fell nearly 18 percent in the first quarter of this year and 15 percent in the second quarter.

TSYS reaffirmed Tuesday that it expects revenue to be down between 3 percent to 5 percent this year, while net income should fall 11 percent to 13 percent.

In a conference call with market analysts after the earnings release, Tomlinson summed up the business environment this year.

"I said last quarter we'll just be glad when 2009 gets over," he said. "We just want it to be done, because there's been nothing pretty about it other than we have signed a lot of business, or at least we've signed letters of intent for a lot of business."

TSYS said it has as many as 21 letters of intent signed with potential clients. Tomlinson expressed frustration with the fact that none have been finalized, but is hopeful some will be inked by year's end.

"I don't know what's going on with getting contracts signed," the CEO said. "I think that people are more sensitive. They're harder to deal with, harder to negotiate. I think it's just a sign of the times."

The company's clients include major banks, retailers and credit-card issuers.

TSYS typically earns money each time a consumer swipes his or her credit card for a purchase or other transaction. TSYS electronically authorizes and transfers the funds between various financial entities.

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