Trintech reports profits of US$1.2m

23 Feb 2005

Trintech, which is in the process of delisting from the German Neuer Markt but is retaining its Nasdaq listing, has reported record fourth quarter profits of US$1.2m and a 23pc revenue growth to US$15.1m.

For the full fiscal year the Irish electronic payments technology vendor brought in a 30pc increase in overall revenues to US$55.8m and profits of US$2m for the year.

In what has been the company’s most solid quarter so far, the advent of chip and PIN technology in retail clearly impacted the company’s performance.

During the quarter the company had signed a major deal with Shell to roll out chip and PIN systems across all company-owned petrol station in Ireland and the UK.

The company also signed a deal with stationery and paperback giant Faber, Coe & Gregg to automate its daily bank deposit verification processes.

Similar bank reconciliation and credit card transaction deals were signed with Friendly Ice Cream Corporation, Ratner Companies, S&K Famous Brands and SunGard Treasury Systems.

During the quarter the company was granted a terminal quality management label from MasterCard for its range of chip and PIN terminals for point-of-sale environments.

Product revenue for the year ended increased 83pc to US$18.8m this year from US$10.3m last year. Q4 product revenue increased 56pc to US$5.3m compared with last year. Software license revenue increased 3pc to US$23.6m. Q4 software license revenue increased 11pc to US$6.5m from US$5.8m last year.

Service revenue for the year increased 35pc to US$13.4m from US$9.9m last year. Service revenue increased 7pc to US$3.3m in Q4 compared with the same quarter last year. The year-on-year increase includes post-acquisition revenues of the Data Flow Services business.

“Trintech’s performance in Q4 and fiscal 2005 has been very solid with strong revenue and record profit growth,” said chairman and CEO Cyril McGuire (pictured). “Our business continues to strengthen in our core markets of Funds Management and Reconciliation solutions with chip and PIN solutions contributing strongly to the underlying growth. These results, along with our focused product set and global customer base, demonstrate the robustness of our business model that will position the company to deliver continued profitable growth and shareholder value.”

By John Kennedy