U.S. EMV (chip cards) demand destroyed CPI Card Group (CPI) in the first quarter (1Q/17), as gross revenue fell 35.2%, and a $4.5 million loss. As a result CPI stock dipped 10%, to hovering at $2.60 today, according to CardData.
CPI says product net sales decreased primarily due to a decline in EMV chip cards sold and EMV card average selling prices. Services net sales decreased 16.5% year-over-year to $26.2 million, predominantly driven by declines in U.S. Prepaid Debit Segment sales and card personalization and fulfillment services revenue.
CPI posted an 35.2% YOY decline in gross revenue for the first quarter to $56.01 million. For the prior quarter CPI reported $67.38 million, and for the year ago quarter $86.39 million.
CPI reported a $4.51 million loss for 1Q/17, compared to a $4.01 million loss for 4Q/16 and a $5.71 million gain for 1Q/16.
CPI posted a 39.3% YOY decline in U.S. Credit Cards & Debit Revenue for 1Q/17 to $39.51 million. For 4Q/16 CPI reported $13.02 million, and for 1Q/16 $65.10 million.
CPI reported a 20.6% YOY decline in U.S. Prepaid Cards Revenue for 1Q/17 to $9.80 million. For 4Q/16 CPI reported $3.65 million, and for 1Q/16 $12.34 million.
CPI posted a 10.3% YOY decline in U.S. Limited Revenue for 1Q/17 to $5.59 million. For 4Q/16 CPI reported $2.16 million, and for 1Q/16 $6.23 million.
Source: CPI Card Group