Trintech revenues reach US$9.1m, up 9pc year-on-year

1 Sep 2010

The Irish Nasdaq-listed financial technology provider Trintech has reported revenues of US$9.1m for the second quarter, up 9pc on last year.

For the six months ended 31 July, Trintech reported revenues of US$17.6m and earnings before interest, taxes, depreciation and amortisation of US$2.5m.

Net income during Q2 reached US$2.5m, but when allied with the sale of its healthcare business to The Advisory Board Company in April for US$21.8m provides Trintech with a net income of US$23.4m.

Overall for the half year, Trintech, headed by Cyril McGuire, generated US$28.9m, including the sale of its healthcare division.

The company has increased expenditure on R&D by 22pc from US$1.2m to US$1.4m and spend on sales and marketing by 7pc to US$2.4m.

“Our performance in Q2 and H1 FY11 was strong with solid business growth in our core Financial Governance, Risk and Compliance (GRC) market,” McGuire said.

“Revenue grew robustly by 9pc in both the second quarter to US$9.1m and H1 FY11 to US$17.6m on the back of new client wins and improved confidence in technology spending. We have significantly strengthened our market position by investing to enhance our product and sales capabilities, as well as expanding internationally.

“Adjusted EBITDA net income grew by a solid 10pc in Q2 FY11 to US$1.5m and by 17pc in H1 FY11 to US$2.5m as net income margins expand. Operating performance metrics continued to improve with strong cash generation during H1 FY11 with cash reserves amounting to US$48.9m at the end of Q2 FY11.

“We made substantial investments in product development and increased R&D by 22pc in the quarter compared to the prior year to deliver new innovative products and services to our growing client base in the Financial GRC market.

“Our outlook remains positive as the macro environment and broader global economy continues its recovery,” McGuire said.

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years