Irish electronic transaction company Trintech has reported losses of US$3.7m from revenues of US$12.6m. The loss was driven primarily by a US$3.9m exceptional warranty charges relating to hardware products deployed in Europe. The company revealed it is evaluating a number of strategic acquisitions.
Without the once-off charge, Nasdaq-listed Trintech would have generated a modest profit of US$225k.
Gross margin, after the warranty charge of US$3.9m, amounted to US$4.4m in the second quarter (Q2) , representing 35pc of revenue. Gross margin, before the warranty charge, amounted to US$8.3m, representing 66pc of revenue.
Highlights of Q2 included major deals with Watford Electronics, the Clarks Companies of North America, Midas and Broker Holdings.
Also during the Q2, shareholders approved a share buy-back agreement with Deutsche Bank. During the quarter the company appointed a new chief financial officer, Maurice Hickey.
“Trintech’s business remains solid despite a challenging Q2 performance,” commented Cyril McGuire, chief executive of the company. “We remain focused on our strategy of concentrating on key products and market opportunities that can deliver profitable growth.
“To achieve this goal, we are committed to migrating the Trintech business model towards a software and transaction services business mix. This was further helped in the Q2 by a strong performance in our finance management systems software division that provides transaction reconciliation software and services solutions.
“In addition, we are evaluating a number of strategic acquisitions within this area with a view to driving shareholder value,” McGuire said.
By John Kennedy