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Trintech, the Irish e-payment security company, said on Tuesday that the USD3.3 million purchase will see it acquire the ePS product line from US company VeriFone. Included in the acquisition is the product itself, associated assets, including the source code to releases of all related products and technologies, as well 35 existing ePS customers including Nike and AT&T.
The VeriFone ePS (electronic payment server software) product line is an e-commerce payment management solution aimed at large retailers, financial institutions, network operators and other multiple service providers. It was created by VeriFone as a framework of core technologies and applications for e-payment, including credit authorisation, debit authorisation, draft capture and settlement, private label card, gift card and check authorisation.
The ePS line was developed using a modular design to allow VeriFone to use it conjunction with its other products. But Trintech said it would be would be a "natural fit" within its own set of products in the PayWare suite.
Gift card applications are an important addition to the Trintech spectrum of offerings, according to Ruth Cotter, investor relations manager at Trintech. With these applications retailers can deduct automatically any relevant discounts from a customer's credit card payment.
According to Cotter the deal with VeriFone is fairly important for Trintech. "It broadens our portfolio of products and strengthens our foothold in America," she said. "If one of our competitors had acquired the VeriFone products it would have strengthened their offering."
VeriFone and Trintech also said on Tuesday that they had entered into a marketing agreement. The companies have agreed to refer customers to each other.
VeriFone is US-based company which was acquired by Gores Technology Group from Hewlett Packard in May of this year. The sale of the ePS line is a result of VeriFone's decision to focus on its core business, which is payment solutions for financial, retail, multi-lane retail, government and petroleum/convenience stores, the company said.
Separately, Trintech reiterated its guidance for the third quarter that ended on 31 October 2001. The company said pro forma operating expenses would be in the USD13.5 million to USD14.5 million range representing a further sequential decrease of up to nine percent on Q2. Furthermore, pro forma net loss will be in the range of USD3 million to USD4.5 million.
However Trintech also said it expected to report lower than anticipated revenues that will be between USD17 million and USD17.5 million. This compares to revenue in the previous quarter of USD18.4 million and the firm's earlier guidance of USD19 million to USD21 million for the quarter ending in October. The company reports its third quarter results on 28 November.
"This is not a good story and we are disappointed," Cotter explained. "But I don't think this is a trend. It is due to exceptional circumstances in September and we would hope it is temporary." Cotter added that the poor results do not mean there will be job losses in the near future.
Trintech is headquartered in Leopardstown, Dublin, where it employs 200 people. Worldwide 590 people work for Trintech, which provides a range of software products for credit, debit, commercial and procurement card applications.
Trintech can be found http://www.trintech.com.
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