The revenue slide at e-payments provider Trintech may be over. The firm’s first quarter results posted this morning showed that revenue rose 2pc to US$10.2m compared with US$10.1m for the corresponding quarter last year.
In sequential terms, revenue was down 3pc from the US$10.5m recorded in the traditionally strong fourth quarter. The results concealed a dramatic 30pc drop in services revenue to US$2.1m this quarter compared to the corresponding quarter last year but this was offset by a sharp increase in sales of payment terminals and other hardware products, up 43pc to US$2.6m, and a growth in software licence revenue, up 6pc to US$5.5m.
The company’s cost management programme continued to proceed as planned with pro forma operating expenses shrinking by 30pc to US$6 .7m quarter-on-quarter.
Net losses also narrowed to US$1m or US$0.04 per share compared with US$0.75 for the first quarter last year. The company boosted its pro forma gross profit margin to 55pc to US$5.6m, an increase from US$4.9m in the corresponding quarter, last fiscal year.
The company burned US$2.9m in cash in the quarter but still has US$42.8m in the bank.
Commenting on the results Cyril McGuire, chairman and chief executive officer, said: “Trintech’s performance remains on track with stabilising revenue, controlling costs and building a platform for profitable growth. These were solid results in line with market expectations, in what continues to be a difficult macro-environment with continued softness in IT spending.”
By Brian Skelly
