Global Payments, Inc. GPN
Q3 2012 Earnings Call Transcript

Paul R. Garcia - Chairman and CEO: Sanjay let me add some color this is Paul Garcia. The reality of Asia isn't that we generated a couple million more in revenue per quarter one way or the other. The reality of Asia I mean if it goes from 10 to 11 to 12 to 15, I'm going to be very disappointed. Asia is all about getting the real opportunity mind in China and this announcement about in Guangdong in Guangzhou is huge for us and it's going to take a while to materialize, but it is a very important flag placing. Ditto with India that's the other big market we're focused on expanding our presence there. So, that is the real excitement and juice about Asia and we're continuing to focus on delivering on that and I'm hopeful in a couple of years that's what we'll be saying. We just have continued expansion in all these geographies.

Sanjay Sakhrani - KBW: I completely understand and then just one follow-up on the breach. I hate to beat the dead horse, but I just want to make sure I understand it's not being Visa compliant issue. I mean is there any liability kind of impact from a liability increase or anything like that financial impact related to that? Then also have you gotten any clarity from how MasterCard expects – from MasterCard on how they expect to respond?

David Mangum - Senior EVP and CFO: Sanjay this is David. I think we'll warp up liability into hopefully one conversation in the future when we've completed the investigation and we know how all these pieces come together. We obviously don't know that right now, hence, we can't quantify, can't reasonably estimate. I guess just to be really painfully clear this is not in our expectations for the year on a GAAP basis, so we backed you on that. When the time is right, we have to roll all of that up into one conversation at that time.

David Mangum - Senior EVP and CFO: I would say clearly not being PCI compliant has financial liabilities and that's the part of the number that we'll quantify eventually, thinks sooner the better. So okay -- MasterCard, the answer is what's the –MasterCard's expected and there's other card brands here involved too. I would say that it wouldn't be unexpected to have MasterCard take similar action. We're working hand in glove with them, you can be sure and they're primary interest is just to be very thoughtful and very thorough and they are doing that.

Operator: Dan Perlin, RBC.

Dan Perlin - RBC: Just got a few on the breach and one on the quarter. Can you confirm that the (bens) have been shut off for the 1.5 million cards?

Paul R. Garcia - Chairman and CEO: Meaning the…?

Dan Perlin - RBC: Well I want to say deactivated?

Paul R. Garcia - Chairman and CEO: Well, no, we can't. Dan, I really don't know how to answer that. I think that the card issuers, tipped deal with this in all manners of way, right, they look for any fraudulent activities and it's very important to understand that, that doesn't necessarily translate. I mean having someone's number doesn't translate to that being a fraudulent transaction it means they have access to it. It doesn't mean it results in a fraud activity or cards being issued or any of that and we don't know that. That's developing, of course we're responsible for that and we will absolutely stand tall and pay that. But how the banks handle that, really not banks necessarily, the card issuing institutions handle that is really up to them, but I will tell you, they have time proven, really thorough ways of doing it. Consumers regrettably have cards replaced all the time, it’s just kind of matter, of course, in this industry, I mean it’s a dangerous world out there. They do a superb job of doing this for the consumer, protecting the consumer completely, and we’re going to play our role to make sure all of that work seamlessly.