Trintech grows profits in second quarter

25 Aug 2004

Irish electronic payments player Trintech has reported a 31pc year-on-year increase in revenues to US$13.2m for the second quarter and profits of US$351k.

The second quarter was marked by significant customer wins such as Maplin Electronics’ decision to implement Trintech’s PayWare Merchant card payment system and Smart 5000 transaction devices for chip & PIN payments at its stores.

Trintech also signed a similar deal with Quest Retail Technology as well as forging a strategic alliance with SunGard Treasury Systems. The quarter was also marked by the arrival of renowned Irish technology veteran Dr Jim Mountjoy to the company’s board and a share buy-back agreement with Deutsche Bank.

Revenue for the six months ended July 31, was US$25.6m compared with US$20.3m for the previous six months, an increase of 26pc. Second quarter revenue increased 31pc to US$13.2m compared with US$10.1m for the same quarter last year.

First half product revenue increased 81pc to US$7.9m from US$4.4m last year. Q2 product revenue increased 138pc to US$4.3m compared with last year.

First half software license revenue decreased 4pc to US$10.9m this year from US$11.4m last year. Q2 software license revenue decreased 7pc to US$5.5m from US$5.9m last year.

First half service revenue increased 49pc to US$6.7m from US$4.5m last year. Service revenue increased 44pc to US$3.4m this quarter compared with the corresponding quarter last year. The year on year increase includes post-acquisition revenues of the DataFlow Services business.

First half gross margin was US$15.3m, an increase of 42pc from US$10.8m last year. Total gross margin for the second quarter was US$7.6m, an increase of 38pc from US$5.5m last year.

Trintech’s balance sheet remains strong with closing net cash and cash equivalent balances of US$38.6m. Net cash generation for Q2 was US$355k. Cash generated from operating activities was approximately US$584k, which was partially used to make acquisition related payments of US$123k in respect of acquisitions made in prior periods and to purchase capital equipment for US$121k.

Trintech CEO and chairman Cyril McGuire (pictured) commented: “I am delighted to report a strong set of results for Q2 with Trintech achieving healthy revenue growth and continued profitability. Our investment in new products, especially for the chip and PIN opportunity is achieving positive results.

“Our strategy is to leverage our multi-channel payment expertise and continue to build strategic relationships and expand channels of distribution globally,” McGuire said.

By John Kennedy