Dublin e-payments firm Trintech has reported its second profitable quarter as a publicly-listed company. In its Q1 results for the fiscal year 2005, the company reported a revenue increase of 21pc to US$12.4m and profits of US$84,000.
Until Trintech floated in 1999, it was a historically profitable company. However, the Nasdaq-listed company only returned to profitability in the last quarter.
The company reported that gross margins continued to expand to 63pc in the first quarter, up from 59pc in the previous quarter.
Highlights of the first quarter included the launch of the company’s SmartPIN Link product, a wireless chip and PIN solution for restaurants and the hospitality sector. Credit card companies throughout Europe are in the process of introducing chip and PIN smart cards to cut down on signature-based fraud, which currently costs the UK over £400m sterling.
The company also announced major contract wins such as the deployment of its PayWare PrePay recharge platform by MTC-Vodafone in Bahrain and the decision by Scheidt & Bachmann to rollout its OpenPay 3000 outdoor payment terminal to enable European railway stations carry out unattended ticket sales using chip and PIN credit cards.
Revenue for the first quarter was US$12.4m, up 21pc from US$10.2m last year. Trintech’s balance sheet remained strong with a cash balance of US$38.2m.
“Trintech’s first quarter results demonstrate our continued execution and momentum in building the foundation for sustained profitability and enhanced shareholder value by focussing on revenue growth, margin expansion, stringent cost control and strong cash management. Revenue grew by 21 percent in Q1 compared to the prior year. Gross margins expanded again in Q1 to 63 percent. We are pleased that Trintech has now been generating cash from operations for four consecutive quarters,” said Paul Byrne, Chief Financial Officer.
Trintech’s CEO, Cyril McGuire (pictured) commented: “The business is now better focused and positioned to win new customers and expand partner channels. Our group strategy to concentrate on key profitable products in growth markets is being executed to plan and is delivering the performance in top line growth and bottom line profitability.”
By John Kennedy