Trintech Group Plc (NASDAQ:TTPA), a leading global provider of integrated financial governance, transaction risk management, and compliance solutions today announced revenues of $10.1 million for the third quarter ended October 31, 2008 and an Adjusted EBITDA net income of $550,000.
In addition, the company announced net income for the quarter of $555,000 including a once-off gain on settlement of an escrow claim of $920,000.
- Revenue amounted to $10.1 million compared to $7.7 million in Q3 last year, representing 31% growth. The increase was primarily due to an increase in revenues from our FMS customers in both the US and internationally, including revenues generated from the Movaris business.
- Gross margin amounted to $6.5 million in Q3, representing 64% of revenue, compared to $5.0 million and 64% in Q3 last year.
- Trintech increased expenditure in research and development by 37% from
$1.2 million in Q3 last year to $1.6 million in the same quarter in the 2009 fiscal year. The increase was primarily due to the inclusion of costs relating to the Movaris business.
- Trintech increased expenditure in sales and marketing by 12% from $2.5 million in Q3 in the 2008 fiscal year to $2.8 million in the same quarter in the 2009 fiscal year. The increase was primarily due to the inclusion of costs relating to the Movaris business.
- General and administrative expenses increased marginally by 1% to $2.29 million in Q3 of the 2009 fiscal year compared to $2.26 million in Q3 of the
2008 fiscal year.
- Trintech realized a gain of $920,000 in Q3 of the 2009 fiscal year relating to the final settlement of an escrow amount held back against any claims arising from the sale of the payments business to VeriFone Holdings, Inc. in September 2006.
- Trintech generated $1.1 million cash from continuing operations, and combined with the $920,000 proceeds from a settlement of the escrow balance, increased its cash balances (including restricted cash) to $18.1 million at the end of the quarter.
- Trintech generated an Adjusted EBITDA net income of $550,000 for Q3 of the 2009 fiscal year compared to an Adjusted EBITDA net loss of $164,000 for the corresponding peri period in the prior year.
- Combined basic and diluted net income per equivalent ADS for the quarter ended October 31, 2008 was $0.03, compared with a basic and diluted net loss per equivalent ADS of $0.07 for the quarter ended October 31, 2007.
Cyril McGuire, Chairman & Chief Executive Officer said, "Trintech's performance in Q3 was solid with strong revenue growth of 31% and adjusted EBITDA net income of $550,000 despite the unprecedented turbulence in the global economic environment. Our commitment to driving growth with EBITDA profitability while maintaining a strict control on our operating cost base is proving to be prudent given the uncertain business outlook. Our business continues to be cash generative with net cash inflows of $1.9 million during the quarter bringing our group cash reserves (including restricted cash) to $18.1 million with no borrowings. Our strategy in the short to medium term will be to focus and invest in our organic business model which is broadly based over a number of key vertical markets and geographies globally while continuing to extract and streamline our cost base."
Paul Byrne, President, added, "Our strategy of focusing on a broader product set targeted at improving operational efficiency in financial operations and regulatory compliance while reducing costs for our clients, expanding our presence in international markets, and ensuring an efficient operating cost base has enabled, and we believe will continue to enable Trintech to deliver continued year over year growth in revenue and EBITDA profitability."
Recent Highlights include:
Trintech announced that Somerston Hotels Ltd selected ReconNET to improve reconciliation and exception management processes while increasing operational efficiencies. Somerston Hotels owns and operates 32 hotels throughout the United Kingdom under two international brands, Express by Holiday Inn and Ramada Encore. With 31 Express by Holiday Inn hotels, Somerston Hotels is the largest franchisee of the brand in the United Kingdom.
Trintech announced that BAE Systems Shared Services has selected AssureNET GL to increase the timeliness and accuracy of their balance sheet account reconciliations. AssureNET GL is an automated reconciliation software system that assists in performing this critical business function, while facilitating internal controls and compliance. BAE Systems, with operations across five continents and customers and partners in more than 100 countries, develops, delivers, and supports advanced defence and aerospace systems in the air, on land, and at sea.
Concuity, a Healthcare division of Trintech, announced that Valley Baptist Health System selected the ClearContracts(TM) Payer Compliance suite to more accurately calculate payments from managed care and government payers; more easily negotiate contract terms and analyze and track the results of managed care agreements; better hold payers accountable to the terms of agreements; and appeal and collect underpaid and denied claims. Valley Baptist Health System is one of the largest not-for-profit health systems in South Texas with more than 800 beds.
Trintech announced that Chrysler Financial has selected AssureNET GL to automate the review, approval, and status tracking of account reconciliations and manage the accounting close process. Chrysler Financial, with headquarters in Farmington Hills, Mich., serves as the center of activity for operations in the U.S., Canada, Mexico, and Venezuela.
Trintech announced the availability of ReconNET 7.5. The newest version of Trintech's reconciliation and account balancing application includes improved security, usability enhancements, and supports a new archival module which will help customers further streamline reconciliation workflow so they can deploy resources to other areas critical to their business.
Trintech announced the general availability of XLNET 5.3. This release is loaded with innovative features and customer-driven enhancements, including a new executive dashboard providing greater visibility and control over business critical spreadsheets. XLNET comprises an integrated suite of spreadsheet management software delivering capabilities to inventory, risk assess, remediate, manage, control, review, approve and monitor business critical spreadsheets and Access databases.
The increase in revenues was primarily due to an increase in revenues from our FMS customers in both the US and international markets, including revenues generated from the Movaris business.
Software license revenue for the quarter ended October 31, 2008 was $4.8 million compared with $3.7 million for the corresponding quarter in the prior year, an increase of 28%. The increase was primarily due to an increase in North America revenues and revenues generated from the Movaris business.
Service revenue for the third quarter ended October 31, 2008 increased 34% to $5.3 million from $4.0 million for the corresponding quarter in the prior year. The increase was primarily due to an increase in international revenues and revenues generated from the Movaris business.
Total gross margin for the third quarter ended October 31, 2008 was $6.5 million, an increase of 30% from $5.0 million in the corresponding quarter in the prior year.
Total operating expenses for the third quarter ended October 31, 2008 were $7.2 million, an increase of 14% from $6.3 million in the corresponding quarter in the prior year. Adjusted EBITDA operating expenses for the quarter ended October 31, 2008 were $6.3 million, an increase of 15% on the Adjusted EBITDA operating expenses of $5.5 million for the corresponding period in the prior year.
Consolidated Adjusted EBITDA net income was $550,000 for the third quarter ended October 31, 2008 compared to an Adjusted EBITDA net loss of $164,000 for the corresponding quarter in the prior year.
Trintech's balance sheet remains strong with cash balances (including restricted cash) of $18.1 million as of October 31, 2008. Net cash generated for the three months ended October 31, 2008 was $1.9 million, which included cash generated from continuing operations of $1.1 million and the proceeds on settlement of an escrow amount in relation to the sale of the payments business to VeriFone Holdings Inc. of $920,000. Cash outflows for the quarter also included $33,000 relating to purchases of the company's stock through the company share buy-back scheme.
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