ACI Worldwide's ACIW third-quarter results were solid. Revenue fell 4% year over year, which is unsurprising, given the stress the company's bank customers are facing. Our valuation rests more on our margin assumptions, as the company's profitability has taken a big hit over the past couple of years because of poor acquisitions and accounting issues, and we believe it will ultimately return close to historical levels. ACI reported good progress on this front, with the operating margin increasing to 11.4% from 2.7% last year. ACI's quarterly results have been all over the map in recent years, so we're careful not to make too much of one quarter. But these results suggest the company might be back on track, and we are maintaining our fair value estimate.

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