Trintech reports net loss of close to US$1m
NASDAQ-listed financial software and payments company Trintech this morning reported a net loss of close to US$1m in its fiscal second quarter, despite delivering revenues of US$10.5m for the quarter.
The Dublin and Dallas-headquartered company this morning reported a net loss for the quarter of US$965,000 and an EBIDTA net income of US$215,000.
Gross margin amounted to US$7.1m in Q2, representing 68pc of revenue, up from US$6m last year.
Despite the net loss, Trintech chief executive, Cyril McGuire (pictured), said the results demonstrated solid growth for the company.
“Trintech’s performance in Q2 was solid with revenue growth of 18pc and adjusted EBITDA net income of US$215,000, despite the challenges of the economic environment.
“However, the continued uncertainty in the market has negatively impacted our revenue and earnings results and business outlook for the rest of the year. Our management focus will continue to be on driving revenue growth and EBITDA profitability, while extracting cost synergies from our recent acquisition of Movaris and maintaining a strong vigilance on our operating cost base given our outlook for the business.
“Following shareholder approval of our share buy-back at our recent AGM, we intend to initiate the purchase of our stock as our board strongly feels that the current Trintech share price does not accurately reflect the true enterprise value of the business,” McGuire said.
The company said that revenue on R&D was up 24pc from US$1.3m last year to US$1.6m.
Expenditure on sales and marketing rose 17pc from US$3m a year ago to US$3.5m.
“In spite of the difficult economic environment, we believe our strategy of focusing on a broader product set, expanding our presence in the international market, and ensuring an efficient operating cost base will enable Trintech to deliver continued year-over-year growth in revenue and EBITDA profitability,” said Trintech president, Paul Byrne.
By John Kennedy
Pictured: Trintech chief executive, Cyril McGuire