-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LZTeX2JOT0mICvCN4qwsjyED+3vhQyZraDrU807R+pBUCb5hOuzQRZjwRTYqKLPq VLCwqzALpLCExtJ9FWLf/Q== 0001170918-06-000948.txt : 20061012 0001170918-06-000948.hdr.sgml : 20061012 20061012172712 ACCESSION NUMBER: 0001170918-06-000948 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060811 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20061012 DATE AS OF CHANGE: 20061012 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ELECTRONIC CLEARING HOUSE INC CENTRAL INDEX KEY: 0000721773 STANDARD INDUSTRIAL CLASSIFICATION: FUNCTIONS RELATED TO DEPOSITORY BANKING, NEC [6099] IRS NUMBER: 930946274 STATE OF INCORPORATION: NV FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-15245 FILM NUMBER: 061142815 BUSINESS ADDRESS: STREET 1: 730 PASEO CAMARILLO CITY: CAMARILLO STATE: CA ZIP: 93010 BUSINESS PHONE: 8187068999 MAIL ADDRESS: STREET 1: 730 PASEO CAMARILLO CITY: CAMARILLO STATE: CA ZIP: 93010 FORMER COMPANY: FORMER CONFORMED NAME: BIO RECOVERY TECHNOLOGY INC DATE OF NAME CHANGE: 19860122 8-K 1 fm8k-081106.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): October 11, 2006 ELECTRONIC CLEARING HOUSE, INC. (Exact name of registrant as specified in its charter) Nevada 0-15245 93-0946274 (State or other jurisdiction of (Commission (IRS Employer incorporation) File Number) Identification No.) 730 Paseo Camarillo, Camarillo, California 93010 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (800) 233-0406 (Former name or former address, if changes since last report) ------------------------------------------------------ Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [_] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [_] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [_] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [_] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION ITEM 8.01 OTHER EVENTS On October 11, 2006, Electronic Clearing House, Inc. issued a press release discussing the impact of certain U.S. legislation on the registrant's business and future results of operations. A copy of the press release is being furnished as Exhibit 99.1 to this Current Report on Form 8-K, and is incorporated herein by reference. ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS (c) Exhibits 99.1 Press Release dated October 11, 2006, issued by the Registrant. 2 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ELECTRONIC CLEARING HOUSE, INC. (Registrant) By: \S\ ALICE CHEUNG ---------------------------- Alice L. Cheung, Treasurer and Chief Financial Officer Dated: October 12, 2006 3 EXHIBIT INDEX EXHIBIT NUMBER DESCRIPTION OF DOCUMENT - ------- ----------------------- 99.1 Press Release dated October 11, 2006, issued by the Registrant. 4 EX-99 2 ex99-1.txt EX-99.1 EXHIBIT 99.1 FOR IMMEDIATE RELEASE ELECTRONIC CLEARING HOUSE (ECHO) ANNOUNCES IMPACT ON FUTURE RESULTS OF OPERATIONS FOLLOWING U.S. LEGISLATIVE ACTION CAMARILLO, CALIF., OCTOBER 11, 2006 - Electronic Clearing House, Inc. (NASDAQ: ECHO), a leading provider of electronic payment and transaction processing services, announced today a portion of its business and future results of operations will be impacted by the recently passed Unlawful Internet Gambling Enforcement Act of 2006 ("the Act"). The Act is expected to become law on or around October 13, 2006. Upon becoming law, the Act will prohibit gambling businesses from accepting any financial instrument in connection with inappropriate Internet gambling. The Act directs the United States Federal Reserve, the Department of the Treasury and the Department of Justice to develop regulations, within 270 days of the Act becoming law, which would direct financial transaction providers, including payment processors, to identify and block certain types of financial transactions connected with this type of Internet gambling. The text of the Unlawful Internet Gambling Enforcement Act of 2006, included as Title VIII of the Safe Port Act, may be found by doing a search at the Library of Congress' legislative information website, http://thomas.loc.gov. ECHO provides back-end payment processing services to merchants across many industries. Several of these merchants are "Internet wallet" providers that, among other matters, permit consumers to use funds in those "Internet wallets" to participate in gaming activities over the Internet. Since the passing of the Act, ECHO's management has been working to identify the impact on its "Internet wallet" merchants, as well as on its business and future results of operations. As of the date of this release, management has found that, as soon as the Act becomes law, several of its "Internet wallet" merchants will no longer permit U.S. consumers to use funds in their respective "Internet wallets" to participate in gaming activities (to the extent it was previously permitted). In addition, some merchants will gradually phase in those restrictions before the expiration of the 270-day regulatory determination period, and some may seek to comply with the new regulatory rules. Regardless of the actions taken by ECHO's "Internet wallet" merchants, the Company has decided to phase out any services related to check processing activities for Internet gaming before the 270-day regulatory determination period expires. The portion of "Internet wallet" services accounts for less than 10% of ECHO's total revenues. Accordingly, the loss of revenues, and net income, arising from these services will have a significant negative effect on the Company's business and results of operations in fiscal 2007. ECHO expects to more fully describe this effect in its forthcoming Annual Report on Form 10-K for the fiscal year ended September 30, 2006. Joel M. Barry, the Chairman and Chief Executive Officer of the Company, stated, "We were aware that this legislative action, if passed, could affect our "Internet wallet" merchants and have previously identified this as a risk to our check processing business. However, with the continuing growth of our credit card processing volume and our sales focus on building other channels for new check processing revenue, we anticipate being able to recover the lost check revenue from the "Internet wallets" in the coming year." ABOUT ELECTRONIC CLEARING HOUSE, INC. (ECHO) ECHO (www.echo-inc.com) provides a complete solution to the payment processing needs of merchants, banks and collection agencies. ECHO's services include debit and credit card processing, check guarantee, check verification, check conversion, check re-presentment, and check collection. SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: ANY STATEMENTS SET FORTH ABOVE THAT ARE NOT HISTORICAL FACTS ARE FORWARD-LOOKING STATEMENTS THAT INVOLVE RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE IN THE FORWARD-LOOKING STATEMENTS. EXAMPLES OF FORWARD LOOKING STATEMENTS INCLUDED IN THIS RELEASE INCLUDE STATEMENTS REGARDING THE AFFECT OF THE UNLAWFUL INTERNET GAMBLING ENFORCEMENT ACT OF 2006 ON THE COMPANY'S FUTURE RESULTS OF OPERATIONS, AND THE COMPANY'S ABILITY TO SUBSTITUTE REVENUE AND NET INCOME IN FISCAL 2007. POTENTIAL RISKS AND UNCERTAINTIES INCLUDE, BUT ARE NOT LIMITED TO, SUCH FACTORS AS FLUCTUATIONS IN DEMAND FOR THE COMPANY'S PRODUCTS AND SERVICES, THE INTRODUCTION OF NEW PRODUCTS AND SERVICES, THE COMPANY'S ABILITY TO MAINTAIN CUSTOMER AND STRATEGIC BUSINESS RELATIONSHIPS, TECHNOLOGICAL ADVANCEMENTS, IMPACT OF COMPETITIVE PRODUCTS AND SERVICES AND PRICING, GROWTH IN TARGETED MARKETS, THE ADEQUACY OF THE COMPANY'S LIQUIDITY AND FINANCIAL STRENGTH TO SUPPORT ITS GROWTH, AND OTHER INFORMATION DETAILED FROM TIME TO TIME IN THE COMPANY'S FILINGS WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION. CONTACT: Erin Cox (310) 854-8319 Financial Relations Board E-MAIL:ecox@frbir.com # # # -----END PRIVACY-ENHANCED MESSAGE-----