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LENDER PROCESSING Reports Operating Results (10-K)

March 01, 2011 | About:

LENDER PROCESSING (LPS) filed Annual Report for the period ended 2010-12-31.

Lender Processing Services Inc has a market cap of $3.11 billion; its shares were traded at around $34.07 with a P/E ratio of 9.7 and P/S ratio of 1.3. The dividend yield of Lender Processing Services Inc stocks is 1.2%.Hedge Fund Gurus that owns LPS: Daniel Loeb of Third Point, LLC, Joel Greenblatt of Gotham Capital, Whitney Tilson of T2 Partners Management, LP, Jim Simons of Renaissance Technologies LLC, Paul Tudor Jones of The Tudor Group, Bruce Kovner of Caxton Associates, George Soros of Soros Fund Management LLC, Steven Cohen of SAC Capital Advisors. Mutual Fund and Other Gurus that owns LPS: Murray Stahl of Horizon Asset Management, Westport Asset Management, John Keeley of Keeley Fund Management, Mario Gabelli of GAMCO Investors.

Highlight of Business Operations:

We are a provider of integrated technology and services to the mortgage lending industry, with market leading positions in mortgage processing and default management services in the U.S. We conduct our operations through two reporting segments, Technology, Data and Analytics and Loan Transaction Services, which produced approximately 31% and 69%, respectively, of our revenues for the year ended December 31, 2010. A large number of financial institutions use our solutions. Our technology solutions include our mortgage processing system, which automates all areas of loan servicing, from loan setup and ongoing processing to customer service, accounting and reporting. Our technology solutions also include our Desktop system, which is a middleware enterprise workflow management application designed to streamline and automate business processes. Our loan transaction services include our default management services, which are used by mortgage lenders, servicers and other real estate professionals to reduce the expense of managing defaulted loans, and our loan facilitation services, which support most aspects of the closing of mortgage loan transactions by national lenders and loan servicers.

Our most significant customer relationships tend to be long-term in nature and we typically provide an extensive number of services to each customer. Because of the depth of these relationships, we derive a significant portion of our aggregate revenue from our largest customers. For example, in 2010, our largest customer, Wells Fargo Bank, N.A. (Wells Fargo), accounted for approximately 20.0% of our aggregate revenue and approximately 12.2% and 23.3% of the revenue from our Technology, Data and Analytics and Loan Transaction Services segments, respectively. JPMorgan Chase Bank, N.A. (JPMorgan Chase), our second largest customer, accounted for approximately 11.1% of our consolidated revenues and approximately 10.3% and 11.3% of the revenues of our Technology, Data and Analytics and Loan Transaction Services segments, respectively. Our five largest customers accounted for approximately 47.7% of our aggregate revenue and approximately 31.4% and 54.7% of the revenue of our Technology, Data and Analytics and Loan Transaction Services segments, respectively. However, these revenues in each case are spread across a range of services, and are subject to multiple separate contracts. Although the diversity of the services we provide to each of these customers reduces the risk that we would lose all of the revenues associated with any of these customers, a significant deterioration in our relationships with or the loss of any one or more of these customers could have a significant impact on our results of operations. See Risk Factors Our results of operations may be affected by the nature of our relationships with our largest customers or by our customers relationships with the government-sponsored enterprises.

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About the author:

Charlie Tian, Ph.D. - Founder of GuruFocus. You can now order his book Invest Like a Guru on Amazon.

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