|
The following e-mail will be sent on your behalf.
has sent the following story to you from ElectricNews.net.
The story is available from https://electricnews.net/news.html?code=4837106
Trintech efforts focus on profitability
Wednesday, November 28 2001
by Matthew Clark
Trintech, the Irish e-payment security company, reported net losses of almost
USD3.6 million, in line with expectations as the firm works to return to
profitability.
The company said that revenues had grown by 24 percent over the corresponding
period last year to USD17.4 million from USD14 million. Revenue for the nine
month period ended 31 October jumped 58 percent to USD52.8 million, compared with
USD33.5 million for the same period in 2000.
Pro forma operating expenses declined sequentially by 11 percent in the third
quarter. Furthermore, Trintech claimed that it expected to see pro forma
operating expenses continue to decline further as a percentage of revenue over
coming quarters. Nevertheless, the company said Q3 pro forma general &
administrative expenditure grew 60 percent to USD3.8 million and nine month pro
forma general & administrative expenditure increased by 80 percent to USD12.0
million from USD6.7 million. Trintech said this growth in expenditure was the
result of consolidation in its global infrastructure as well as an effect of its
recent acquisitions.
But despite the increase in revenues and the decreased expenditures, Trintech's
losses climbed as the firm announced a pro forma basic and diluted net loss per
equivalent American Depository Share (ADS) of USD0.06 compared with USD0.04 for
the same quarter last year. Pro forma basic and diluted net loss per
equivalent ADS for the nine months came to USD0.22 compared with USD0.18 in 2000.
Net loss before the effects of amitorisation, depreciation, stock compensation
and restructuring charges came to almost USD3.6 million in the quarter, compared
to USD2.5 million last year. For the nine month period net losses excluding the
same items came to almost USD13.6 million, a jump from the USD9.7 million the
company reported a year earlier.
All of the company's reported losses and revenues came in line with lowered
estimated that the firm provided in mid-November. At the end of the third
quarter, Trintech had a cash balance of USD74 million.
The company's results in the difficult economy come after a string of new deals
as well as the acquisition of a VeriFone product line. These new deals, in
conjunction with a variety of cost cutting measures which have not yet included
job cuts, are set to return the firm to profitability. In previous quarters there
had been talk of profitability in the fourth quarter of this year, although that
prospect was not mentioned in the firm's results on Wednesday. Nor was the
possibility of staff reductions.
"We continue to take the necessary steps to reduce our operating costs, which
have already delivered significant annualised cost savings, proving that we
remain focussed on our strategy to return to profitability," said John McGuire,
Trintech's chief executive officer. "Today's results reflect Trintech's ability
to navigate through tough times by signing new customers such as Brother
International and Magyar Takarek Bank (MTB) and extending current customer
relationships such as ABSA Group Limited and GZS," McGuire added.
"The measured steps we continue to take to aggressively manage costs will help
ensure the long-term health of the business, together with healthy cash reserves
of USD74 million. In terms of cost and cash management, we are confident the
efforts we are taking today will provide us with more competitive flexibility in
responding to changing market conditions as we extend our leadership position in
the payment space." Paul Byrne Trintech's chief financial officer added.
Trintech employs around 200 in Dublin and almost 600 worldwide. The company,
which provides a range of software products for credit, debit, commercial and
procurement card applications, can be found on the Web at HREF="http://www.trintech.com">http://www.trintech.com.
|
