Source: Trintech Group
Trintech Group Plc (NASDAQ: TTPA: Prime Standard: TTP), a leading provider of transaction management and payment infrastructure solutions, today announced second quarter revenues of $13.2 million and profits of $351,000, equivalent to a basic and diluted net income per equivalent American Depositary Share (ADS) of $0.02.
Highlights Revenue growth of 31 percent in Q2 compared to corresponding quarter last year. Trintech maintains profitability in Q2, with a net income of $351,000 and an Adjusted EBITDA net income of $804,000. Adjusted EBITDA net income excludes restructuring charges, net amortization and impairment of goodwill and purchased intangible assets, depreciation, adjustment of acquisition liabilities, stock compensation, interest income, net and income taxes. Basic and diluted net income per equivalent ADS for the quarter ended July 31, 2004 was $0.02 compared with basic and diluted net loss per equivalent ADS of $0.12 for the corresponding quarter ended July 31, 2003.
Cyril McGuire, Chairman and Chief Executive Officer commenting on the results said: "I am delighted to report a strong set of results for Q2 with Trintech achieving healthy revenue growth and continued profitability. Our investment in new products, especially for the Chip and PIN opportunity is achieving positive results. Our strategy is to leverage our multi-channel payment expertise and continue to build strategic relationships and expand channels of distribution globally."
Recent highlights include:
Trintech announced that Maplin Electronics implemented Trintech's bank-accredited PayWare Merchant card payment processing solution and Smart 5000 transaction processing devices to process all its card payment transactions, including EMV Chip and PIN. Trintech announced a strategic alliance with SunGard Treasury Systems, whereby Trintech's data network will provide SunGard clients with seamless access to electronic daily balance transaction and balance statements from North American banks. Trintech announced that it had partnered with Quest Retail Technology, a leading developer and supplier of PoS (point-of-sale) technology, to provide a complete EFT and Chip and PIN solution to UK merchants. As part of the agreement, Quest will now integrate Trintech's PayWare EFT and PayWare SmartPIN Chip and PIN solution with its own range of PoS terminals, including the award-winning V-Touch, touch screen terminal. Trintech announced that more than 200 treasury and accounting delegates from 115 leading companies gathered in Miami, Florida for Trintech's eighth annual Customer Conference in May. Customers attended sessions and networked with other users and Trintech's experts to increase the benefits from Trintech's funds management software and services, including ReconNET, Bank Fee Analysis, and the DataFlow Transaction Network. Trintech held its 5th Annual General Meeting (AGM) as a public company in Dublin, Ireland. The Chairman welcomed the appointment by the Shareholders of Dr. Jim Mountjoy to the Board and the approval of the share buy back agreement with Deutsche Bank AG.
Revenue for the six months ended July 31, 2004 was $25.6 million compared with $20.3 million for the six months ended July 31, 2003, an increase of 26 percent. Second quarter revenue increased 31 percent to $13.2 million compared with $10.1 million for the corresponding quarter last year.
First half product revenue increased 81 percent to $7.9 million this year from $4.4 million last year. Q2 product revenue increased 138 percent to $4.3 million compared with the corresponding quarter last year.
First half software license revenue decreased 4 percent to $10.9 million this year from $11.4 million last year. Q2 software license revenue decreased 7 percent to $5.5 million from $5.9 million for the corresponding quarter last year.
First half service revenue increased 49 percent to $6.7 million from $4.5 million last year. Service revenue increased 44 percent to $3.4 million this quarter compared with the corresponding quarter last year. The year on year increase includes post-acquisition revenues of the DataFlow Services business.
First half gross margin was $15.3 million, an increase of 42 percent from $10.8 million in the corresponding period last year. Total gross margin for the second quarter was $7.6 million, an increase of 38 percent from $5.5 million in the corresponding quarter last year.
First half operating expenses increased 11 percent to $15.1 million from $13.6 million in the corresponding period last year. Adjusted EBITDA operating expenses for the first half this year were $14.1 million, an increase of 6 percent on the Adjusted EBITDA operating expenses for the first half last year.
Operating expenses in Q2 fell 2 percent to $7.4 million compared to the corresponding quarter last year. Adjusted EBITDA operating expenses for Q2 this year were $6.9 million, an increase of 5 percent on the Adjusted EBITDA operating expenses for Q2 last year.
Trintech's balance sheet remains strong with closing net cash and cash equivalent balances of $38.6 million. Net cash generation for Q2 was $355,000. Cash generated from operating activities was approximately $584,000 which was partially used to make acquisition related payments of $123,000 in respect of acquisitions made in prior periods and to purchase capital equipment for $121,000.
During the quarter, Trintech did not repurchase shares under its ongoing stock repurchase program. As of July 31, 2004 approximately $4.4 million remained available for future repurchases under this program.
"Trintech's second quarter results demonstrate the continued successful execution of our strategy of focussing on key growth markets, such as Chip and PIN solutions and treasury and cash management solutions. Combining this strong focus with stringent cost control has enabled us to expand our net operating margins and grow profits", said Paul Byrne, Chief Financial Officer.