Mixed results for Trintech

26 Feb 2003

Trintech Group, the Irish provider of secure payment infrastructure solutions, today announced fourth quarter and fiscal year results for the period ended 31 January, 2003. The company reported declining revenues, but also declining losses.

Fourth quarter product revenue was US$2.7m, a decrease of 61pc from product revenues of US$6.9m for the corresponding quarter last year. Product revenue for the fiscal year ended 31 January, 2003 was US$9.2m, a decrease of 65pc over the fiscal year product revenue last year of US$26.1m. Trintech stated that product revenue shortfall for the fiscal year and fourth quarter of 2003 can be attributed to an ongoing general weakness in the company’s point of sale business line, due mainly to a fall off in new IT investment at the retail level in the German market. Despite the current weakness, the company said that it was confident in the potential of the PoS market opportunity, with the introduction of EMV (the new global standard for chip-based bank cards) throughout Europe and has implemented a number of actions to return the product line to profitability.

Fourth quarter service revenue decreased by 19pc from US$2.6m for the fourth quarter last year, to US$2.1m for the fourth quarter ended 31 January, 2003. Fiscal year ended 31 January, 2003 service revenue decreased 6pc from US$12m to US$11.3m this fiscal year.

The company reported pro forma basic and diluted net loss per share declined 63pc sequentially and for the quarter ended 31 January, 2003 was US$0.03 compared with the pro forma basic and diluted net loss per share of US$0.17 for the corresponding quarter ended 31 January, 2002. The actual pro forma net loss was US$0.5m for the quarter ended 31 January, 2003.

It was also the eighth consecutive quarter of declining pro forma operating expenses, which fell strongly by 35pc in the fourth quarter, compared to the corresponding period last year. Pro forma operating expenses declined 10pc sequentially this quarter to US$6.8m.

“Despite a continuing weak IT environment, Trintech remains on track for pro forma profitability in the near term. Our cost base is now at a level that can return the company to pro forma profitability in the first half of 2004. Our solid performance for the fourth quarter and the year follows a period of restructuring in 2002 which is largely completed. The payments industry is still consolidating and Trintech’s product set and strong financial base will enhance its competitive position as the market improves. Trintech’s business focus is to execute efficiently and leverage our significant payment domain expertise and to concentrate on profitable business growth opportunities globally,” said Cyril McGuire, chairman and CEO.

By Dick O’Brien