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The company reported total revenue in the quarter of USD18.4 million, compared to revenue of USD10.7 million in the same period last year. On the half year, the company reported total revenue of USD35.4 million, an increase from the USD19.5 million it reported in the first half of 2000.
But per-share losses were far higher than this period last year. Despite the increased revenues, the company saw its Q2 total operating expenses, before the effect of amortisation, depreciation, stock compensation and restructuring, increase almost 50 percent over the same period last year. As a result it reported a loss of USD0.14 per share before exceptional items for the quarter, compared with a loss of USD0.10 in the same period in 2000. Loss per share for the half year stood at USD0.33 compared with USD0.27 a year earlier.
Trintech, which cut 10 percent of its workforce in February, announced no immediate cuts in Wednesday's results. However, Cyril McGuire, executive chairman of the company, would not rule out the possibly of cuts before the end of the year.
"We are continuing to control our cost base and we will do whatever it takes to return to profitability by the fourth quarter," he told ElectricNews.Net.
He said while the company has no immediate plans for any new acquisitions, it still remains part of the company's growth strategy and cash reserves of USD82 million make it possible.
The increased operating expenses, according to the company, were the result of its restructuring and recent acquisitions. Additionally, Trintech said, these costs are expected "to decline as a percentage of revenue over coming quarters." The company said part of the loss can be accounted for in a once-off re-structuring charge of USD2.5 million, equivalent to USD0.04 per ADS (American depository share), to cover staff reductions and costs related to the closure of excess facilities.
Diluted net loss per ADS for the half year was USD0.54, compared with USD0.22 for the same period last year. Cash usage was at USD5 million for Q2 with a closing cash balance of USD82 million.
"I am pleased to report solid first half and Q2, FY 2002 results which underpins Trintech's return to profitability strategy," said John McGuire, chief executive officer of Trintech. "We are delighted to have maintained growth of the software licence business in demanding market conditions. As reported last quarter we will continue to press ahead in this challenging environment and remain ever focussed on extending our leadership in the payment space."
Paul Byrne, chief financial officer of the company, said that Trintech expected to reach pro forma breakeven in Q4 of this fiscal year. He added, "Our strategy of measured investment in key business areas, such as sales & marketing and research & development, will continue to be key drivers for revenue growth and return to profitability."
During the year, the company announced a number of notable deals including agreements with BarclayCard, Raytheon Aircraft Company, Manx Telecom and Corner Banca. All of these deals, plus many others announced in the quarter, were for the company's PayWare products, it most visible line of business.
Trintech was founded in 1987 and in an acquisition spree purchased no less than four companies in 2000: Checkline (UK), Sursoft (Uruguay), Exceptis Technologies (Ireland) and Globeset (Texas). The company employs around 600 globally and has 2000 enterprise customers in over 30 countries.
Trintech can be found at http://www.trintech.com.
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