Trintech wins Citi business; reports revenue slowdown

Trintech wins Citi business; reports revenue slowdown

Citibank Card Acceptance, one of Europe’s largest acquirers of Visa and MasterCard/Eurocard transactions, has deployed PayWare Resolve from Dublin-based Trintech to manage chargebacks from all its merchant accounts in Europe.

The package automates the exception management process from end-to-end, and features built-in knowledge of national and international chargeback regulations.

Citibank Card Acceptance operates credit and debit card acquiring businesses in Germany, Belgium and Poland and cross border credit and debit card acquiring solutions across Europe.

News of the order comes as Trintech reports steeply declining revenues for the fourth quarter and year-ending January 2003. Q4 revenue was down 32% to $10.5 million, compared with $15.5 million for the corresponding period. Revenue for the fiscal year was $42.9 million, down 37% from $68.3 million in the year-ago period.

Trintech blames the slowdown on the fragile state of the global economy, resulting in slower payment infrastructure investment decisions and longer sales cycles.

The company took a restructuring charge of $5.3 million for the full year to cover costs relating to staff reductions and the closure of excess facilities as the firm moves to concentrate on products with the highest earnings potential

Paul Byrne, chief financial officer, comments: "Decisive action was taken by the company during FY 2003 to stabilise the business and put it on solid footing for future growth. As a result of these continuing actions on right sizing our cost base the company saw an ongoing reduction in operating expenses in Q4. Pro forma operating expenses declined sequentially by 10% this quarter and Trintech remains on track for pro forma profitability in the near term."

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