Trintech shores up revenues


28 May 200352 Views

Share on FacebookTweet about this on TwitterShare on LinkedInPin on PinterestShare on RedditEmail this to someone

Share on FacebookTweet about this on TwitterShare on LinkedInPin on PinterestShare on RedditEmail this to someone

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