Trintech returns to profitability in fourth quarter

25 Feb 2004

Nasdaq-quoted Irish e-payment technology firm Trintech has returned to profitability, according to its fourth quarter results. As well as this revenues increased 17pc to reach US$12.3m.

Trintech achieved profitability In the quarter with a net income of US$577,000 and an Adjusted EBITDA net income of US$1.2m. Gross margins continued to expand to 59pc in Q4, a sequential increase from 58pc for the previous quarter.

Operating expenses in Q4 fell 75pc to US$6.7m compared to the corresponding quarter last year. Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) operating expenses for Q4 this year were US$6.2m, a reduction of 16pc on the Adjusted EBITDA operating expenses for Q4 last year. Adjusted EBITDA operating expenses exclude restructuring charges, net amortisation and impairment of goodwill and purchased intangible assets, depreciation, and adjustment of acquisition liabilities and stock compensation.

During the quarter Trintech acquired CW & Associates, Inc trading as DataFlow Services, a private company, for a net consideration of US$3.8m. Future earn out payments are expected to bring the total consideration to approximately US$5.3m.

“I am delighted to report a strong set of results for Q4 with Trintech returning to profitability and revenue growth,” commented Trintech’s CEO Cyril McGuire.

“All key performance metrics were achieved creating a solid platform for future growth. Our financial position remains strong and our goal continues to be making Trintech more competitive, more focused and better positioned in the marketplace. Our solid performance in the quarter supports our strategy to focus on key core products and illustrates the robustness of our business model,” McGuire concluded.

By John Kennedy