Irish electronic payments company Trintech this morning reported a net loss of US$2.1m for the first quarter. The company reported revenues of US$11.1m, down from US$13.1m last year, in what the company’s chief executive Cyril McGuire (pictured) admitted was “a challenging first quarter”.
Gross margin for the first quarter amounted to US$7m, representing 63pc of revenues and was unchanged from last year.
During the quarter Trintech emerged successful in a litigation mediation against rival firm Checkline, which resulted in the company receiving a payment of US$1.7m.
However, Trintech had to pay out US$322,000 in a stock compensation charge as well as incurring a restructuring charge of US$321,000. The company also completed the acquisition of Assurity Technologies in March, which also resulted in an increased amortisation charge.
The financial situation was not helped by a decline in sales from US$13.1m a year ago to US$11.1m in the last quarter, resulting in a net loss of US$2.1m.
“Trintech’s business remains solid despite a challenging first quarter,” said McGuire this morning. “We remain focused on our strategy of investing in 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 services business mix. This was further helped in Q1 by a strong performance in our Funds Management Systems software division which provides reconciliation software and transaction services solutions.
“In addition, we continue to seek expansion opportunities in software and services both organically and through strategic acquisitions to grow Trintech’s market share and profitability,” McGuire said.
By John Kennedy