Irish payment software vendor Trintech is warning that second quarter revenues will be lower than previously expected due to a slowdown in demand for chip and PIN systems in Europe.
Trintech says it expects second quarter revenue to be in the range of $12.25 million to $12.75 million, which is lower than previously expected due to falling sales of chip and PIN systems in Europe and delays in the adoption of EMV 'unattended payment' systems.
In May the company reported first quarter revenues of $13.1 million and net income of $392,000.
The vendor also says that problems with certain hardware products in Europe means that it has had to extend warranties on these products, which will cost around $4 million,
Including the one-time charge of $4m, Trintech is expected to incur a second quarter net loss in the range of $3.7 million to $3.9 million.
Trintech says its FMS division, which provides transaction reconciliation software, was stronger in the quarter and that this performance, combined with tight management of the company's cost base, compensated for the reduction in hardware product revenues.