ECHO announces improved second quarter

Agoura Hills-based Electronic Clearing House, Inc. (NASDAQ: ECHO), a leading provider of electronic payment services, has reported financial and operating results for the three and six months ended March 31, 2003.

Revenue for the second quarter of fiscal 2003 was a record $9,767,000, an increase of 16.5 percent, as compared to $8,386,000 in the prior year quarter.

Operating income rose to $465,000, as compared to an operating loss of $3,129,000 in the same period last year. The year-over-year improvement can be primarily attributed to the absence of $2,669,000 of legal and settlement fees incurred in the second quarter of fiscal 2002, elimination of $128,000 in amortization of goodwill, and a reduction of $300,000 in valuation allowance for real estate and inventory recorded in the prior year quarter. Excluding these expense items, operating income increased by $497,000 over the same quarter last year.

The company reported net income of $268,000 or $0.05 per share on a fully diluted basis, in the quarter, as compared to a net loss of $1.9 million, or $0.33 per share in the second quarter of fiscal 2002.

"We are pleased to report another quarter of strong organic growth and improving profitability," said Joel M. Barry, chairman and CEO of Electronic Clearing House, Inc.