Research spending keeps them on top

Article Excerpt

ACI WORLDWIDE $28.43 (Nasdaq symbol ACIW; TSINetwork Rating: Extra Risk) (402-390-7600; www.aciworldwide.com; Shares outstanding: 115.8 million; Market cap: $3.3 billion; No dividends paid) makes software for processing transactions by credit cards, debit cards, automated teller machines, point-of-sale terminals and interbank systems. Its products also work to cut fraud. The company’s more than 5,100 customers include 1,000 global financial institutions and thousands of retail giants. Altogether, they process $14 trillion in payments a day. In the quarter ended September 30, 2018, the company’s sales rose 8.8%, to $245.5 million from $225.7 million a year earlier. Renewals were strong, as were new orders, especially for its new products. ACI made $0.26 a share, up 73.3% from $0.15. The higher sales contributed to the jump. Recurring revenue adds stability ACI continues to shift from the one-time sale of software to “software as a service.” Under this subscriber model, clients access its computer programs online using remote, secure webservers. The transition hurts the company’s near-term sales, but provides stable, recurring revenue…

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