@George1972
Thanks for yourcomments.
During the 3rdqtr. 2020 conference call for Intelligent Systems, the CEO made some commentsabout the Wirecard business in the APAC region. Based on these comments itsounds like CoreCard was also in discussions to directly take over the cardissuing business that Change ended up acquiring. So I thought maybe they mighthave worked out a deal with Change to put the card programs on CoreCard’ssoftware after their acquisition.
If Change didn’tend up working with CoreCard, do you have any ideas on what platform the Aus/NZcard programs are running on today?
The CEO alsomade a reference to VisionPLUS which Intelligent Systems was involved in backin the 1990’s and early 2000’s before that company was sold to First Data.CoreCard Software was developed off of that product base. VisionPLUS was based on COBOL code and CoreCard was created on a newer code base.
With orwithout a CCA – CoreCard connection, I also agree that CCA has a great opportunityto expand their customer base.I cut n pasted another comment from the CEO about the market potential in that area.
Here aresome of the Ceo’s comments and a link to the complete transcript.
“So as faras the Wirecard situation, we are opening a new office in Dubai, in the UAE.For a good number of years, we've operated what is known as APAC, the AsiaPacific region of the world, through our issuing licensee Wirecard. Wirecardhad and still has offices and employees in Dubai, Singapore, and Chennai,India, in addition to their headquarters in Germany. You're probably all wellaware of the Wirecard collapse. Just a few years ago, they were our secondlargest revenue customer. Revenue from them this year is less than 4% for thefirst 9 months. Their problems were almost exclusively in their acquiringbusinesses not in the issuing business, which is what we do. Since filing forbankruptcy, they've been selling out their acquiring --well, actually they'vebeen selling up all of their assets. We've been discussing taking over theirissuing business in the APAC area for several months, but it's a complicatedprocess with all of the banking and regulator licensing required in eachcountry. While we wanted to get in the business, we didn't want to take on an ongoingobligation that was going to take a long time to end up being profitable forthe company.”
“MarkPalmer:
Yes. Goodmorning, and thanks for taking my question. If you could talk a little bitabout what your thinking is with regard to the size of the addressable marketassociated with the company's international expansion, keeping in mind as yousaid that it's going to take some time before that effort begins to move theneedle in terms of the company's operating performance, how should investors thinkabout the size of that opportunity?
Leland Strange:
I would liketo just say large, but I know that's not what you're looking for. We don'treally feel the need to quantify in dollars because of how large it is. Thereare two components of it. One is prepaid. Again, that's a large market. And theother is, credit. The current processor who is one of the largest in the area,uses VisionPLUS software. That software that we developed 30 years ago, that weconverted -- when I say we, predecessor company Paysys, that we converted offof to the new CoreCard software. And so there has not been any innovativecredit systems in that area for some time. We believe there is room for that insome of the larger countries there, and we also believe that there'll be a lotof new things happening in places like Saudi Arabia, UAE, and other places asthey in some ways, they're ahead of us for prepaid, in some ways they're behindus in terms of unique credit programs. So, Mark, I'm sorry, I'm not going togive you a number. If I were to throw out a number, I'd be saying it's $1billion or more. It's just a big number, but it will be slow. I expect more newthings there than conversions in that area.”
https://intelsys.com/download/companies/270117a/Transcript/20201103Transcript.pdf
(20min delay)