DUBLIN, Ireland and DALLAS, May 26, 2004 (PRIMEZONE) -- Throughout the press release of 26 May 2004 the fiscal year was incorrectly stated as 2004. The correct fiscal year is 2005.
Trintech Group Plc (Nasdaq:TTPA) (Prime Standard:TTP), a leading provider of transaction management and payment infrastructure solutions, today announced first quarter revenues of $12.4 million and profits of $84,000, equivalent to a basic and diluted net income per equivalent American Depositary Share (ADS) of $0.01.
Highlights
* Revenue growth of 21 percent in Q1 compared to corresponding quarter last year.
* Trintech maintains profitability in Q1, with a net income of $84,000 and an Adjusted EBITDA net income of $594,000. 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.
* Gross margins continue to expand to 63 percent in Q1, a sequential increase from 59 percent for the previous quarter.
* Basic and diluted net income per equivalent ADS for the quarter ended April 30, 2004 was $0.01 compared with basic and diluted net loss per equivalent ADS of $0.04 for the corresponding quarter ended April 30, 2003.
Cyril McGuire, Chairman and Chief Executive Officer commenting on the results said: "I am delighted to report a solid set of results for Q1 with Trintech achieving healthy revenue growth and profitability. The business is now better focused and positioned to win new customers and expand partner channels. Our group strategy to concentrate on key profitable products in growth markets is being executed to plan and is delivering the performance in top line growth and bottom line profitability."
Recent highlights include:
* Trintech announced the launch of SmartPIN LINK, a wireless Chip and PIN solution for restaurants and the hospitality sector. Card fraud currently costs the UK over GBP400 million a year. To combat fraud, the industry is introducing chip-based payment cards validated by PIN rather than signature. SmartPIN LINK is a complete payment solution that makes it easy for hospitality point-of-sale (POS) systems to accept Chip and PIN credit and debit cards at the table.
* Trintech announced that Alphameric selected the Company's Smart 5000 PINPad as the technology solution for its EPOS implementations across a number of retailers in the UK and Ireland, including Clinkards, Giles Sports and Slater Menswear.
* Trintech announced that MTC-Vodafone (Bahrain), the Kingdom's newest GSM operator, went live with the Company's PayWare PrePay recharge platform. The industry-leading platform was integrated by International Turnkey Solutions (ITS), the Company's partner in the Middle East and Africa. Trintech's PayWare PrePay will play an important role in automating MTC-Vodafone's prepaid services 'eeZee' and 'eeZee Xtra', ensuring a fast, cost-effective, yet secure mobile top-up.
* Trintech announced that Ottakar's PLC, one of the UK's leading book store chains, selected ReconNET(TM) and the ExecuNET Executive Reporting Suite to automate the verification and reconciliation of its cash banking and credit card transactions. ReconNET enables Ottakar's PLC to streamline its cash management processes, and provide effective risk management and reporting across its UK stores.
* Trintech announced that Gruenig-Poth, a leading manufacturer of outdoor vending systems, selected the Company's OpenPay 2000 for use in their new range of solar-powered machines. The vending machines will offer mobile phone top-up to customers of all networks and will be installed throughout Germany.
* Trintech announced that Scheidt & Bachmann selected the Company's OpenPay 3000 outdoor payment terminal and back office payment software, to power secure Chip and PIN ticketing at railway stations in selected European markets. Scheidt & Bachmann, a global leader in the supply of automated ticketing and payment systems, plans to roll-out PayWare OpenPay 3000 to enable secure payments at unattended ticket vending machines.
* Trintech announced the launch of PayWare GiftCard. Building upon the Company's existing gift card success with retailers such as TJX, AT&T Wireless and Marsh Supermarkets, PayWare GiftCard allows retailers to set-up and run their electronic gift card program in-house in a cost-effective manner.
Results Overview:
Revenue for the quarter ended April 30, 2004 was $12.4 million compared with $10.2 million for the corresponding quarter last year, an increase of 21 percent.
Product revenue for the quarter ended April 30, 2004 increased 40 percent to $3.6 million compared to $2.6 million for the corresponding quarter last year.
License revenue for the quarter ended April 30, 2004 decreased 1 percent to $5.4 million from $5.5 million for Q1 last year.
Service revenue for the quarter ended April 30, 2004 increased 55 percent to $3.3 million from $2.2 million for the corresponding quarter last year. The year on year increase includes post-acquisition revenues of the DataFlow Services business.
Total gross margin for the quarter ended April 30, 2004 was $7.8 million, an increase of 47 percent from $5.3 million in the corresponding period last year.
Operating expenses in Q1 increased 28 percent compared to the corresponding quarter last year. Adjusted EBITDA operating expenses for Q1 this year were $7.2 million, an increase of 7 percent on the Adjusted EBITDA operating expenses for Q1 last year.
Trintech's balance sheet remains strong with closing net cash and cash equivalent balances of $38.2 million. Net cash generation for Q1 was $166,000. Cash generated from operating activities was approximately $1.3 million, including restructuring payments of $0.4 million. This was partially offset by acquisition related payments of $0.4 million in respect of acquisitions made in prior periods.
During the quarter, Trintech did not repurchase shares under its ongoing stock repurchase program. As of April 30, 2004 approximately $4.4 million remained available for future repurchases under this program.
"Trintech's first quarter results demonstrate our continued execution and momentum in building the foundation for sustained profitability and enhanced shareholder value by focussing on revenue growth, margin expansion, stringent cost control and strong cash management. Revenue grew by 21 percent in Q1 compared to the prior year. Gross margins expanded again in Q1 to 63 percent. We are pleased that Trintech has now been generating cash from operations for four consecutive quarters," said Paul Byrne, Chief Financial Officer.
Trintech will host a conference call to discuss its financial results and business outlook beginning at 15:30hrs (UK Time) today, May 26th 2004. Please see advisory for information on the call.
A web simulcast of Trintech's conference call reviewing our performance for Q1 fiscal year 2005 and our business outlook for Q2 fiscal year 2005 will be broadcast live today, Wednesday May 26th, 2004 at 3:30 PM (UK Time), 10:30 AM (NY Time) and 07:30 AM (CA Time) and thereafter for 1 year at www.trintech.com. An instant telephone replay will also be available for 10 days by dialing +44 1452 550 000 and entering the following access number (1318590#).
About Trintech
Trintech is a leading provider of secure payment infrastructure and transaction management solutions to financial institutions, payment processors, enterprise retailers and network operators globally. Built on over 17 years of experience, Trintech's solutions manage each area of the payment transaction cycle from authentication, authorization, settlement, dispute resolution and reconciliation - enabling our customers to reduce transactions costs, eliminate fraud, minimize risk, maximize cashflow and increase profitability. Trintech can be contacted in Ireland at Trintech Building, South County Business Park, Leopardstown, Dublin 18 (Tel: +353-1-207-4000), in the US at 15851 Dallas Parkway, Suite 855, Addison, TX 75001 (Tel: +1-972 701 9802), and in the UK at 186-192 Darkes Lane, Potters Bar, Hertfordshire, EN6 1AF (T: +44 (0) 1707 827000). www.trintech.com
This news release contains "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any "forward looking statements" in this press release are subject to certain risks and uncertainties that could cause actual results to differ materially from those stated. "Forward looking statements" in this press release include statements, among others, relating to Trintech's market position and business focus, the planned roll out of Trintech's products with third parties, including Gruenig-Poth, and Trintech's ability to generate momentum in building a foundation for sustained profitability and enhanced shareholder value. Factors that could cause or contribute to such differences include Trintech's ability to extract costs from its business, its ability to accurately predict future sales, its ability to accurately predict customer needs and to successfully position itself in the market, the long term health of Trintech's business and ability to improve performance of the organization, the ability of its customers to fulfill their commitments to adopt Trintech's secure payment technology, delay or reduction in the size of the planned Gruenig-Poth roll out, the growth of the secure payments software and services market, Trintech's ability to develop, market and sell secure payments and treasury and cash management software, the market acceptance of the security standards for payment transactions, the ability to improve and expand the functionality of products, the ability to develop strategic relationships, the ability to react to rapid technological change rapidly, the ability to resize the organization, reduce costs, consolidate locations, combine operations and eliminate redundancies in the organization and the effects of macroeconomic uncertainty on the demand for Trintech's products. Actual performance may also be affected by other factors more fully discussed in Trintech's Form 20-F for the fiscal year ended January 31, 2004, filed with the US Securities and Exchange Commission (www.sec.gov). Lastly, Trintech assumes no obligation to update these forward-looking statements.
TRINTECH GROUP PLC
CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands, except share and per share data)
April 30, January 31,
2004 2004
ASSETS
Current assets:
Cash and cash equivalents $ 37,686 $ 36,864
Restricted cash 555 1,211
Accounts receivable, net of
allowance for doubtful
accounts of
$1,438 and $1,595 7,730 9,800
respectively
Inventories 855 824
Value added taxes 308 471
Prepaid expenses and other 3,027 2,706
assets
Total current 50,161 51,876
assets
Property and equipment, net 856 988
Other non-current assets 3,783 3,994
Goodwill, net of
accumulated amortization
and impairment of $84,471
at April 30, 2004 and 7,459 7,459
January 31, 2004
respectively
Total assets $ 62,259 $ 64,317
LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 3,145 $ 4,804 Accrued payroll and related 1,276 1,864 expenses Other accrued liabilities 5,215 5,699 Value added taxes 559 819 Warranty reserve 342 356 Deferred revenue 9,664 8,739
Total current 20,201 22,281
liabilities
Non-current liabilities: Capital leases due after 25 84 more than one year Government grants repayable 152 157 and related loans Provision for lease 360 441 abandonment
Total non-current 537 682
liabilities
Series B preference shares,
$0.0027 par value
10,000,000 authorized;
None issued and - -
outstanding
Shareholders' equity:
Ordinary Shares, $0.0027
par value: 100,000,000
shares authorized;
30,747,493 and
30,596,775 shares issued
and outstanding at
April 30, 2004 and 84 83
January 31, 2004
respectively)
Additional paid-in capital 246,116 245,965
Treasury shares (189,082
and 254,508 at April 30,
2004 and
January 31, 2004 (199) (268)
respectively)
Accumulated deficit (202,091) (202,175)
Accumulated other (2,389) (2,251)
comprehensive loss
Total 41,521 41,354
shareholders' equity
Total liabilities $ 62,259 $ 64,317
and shareholders' equity
TRINTECH GROUP PLC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except share and per share data)
Three months
ended April 30,
2004 2003
Revenue:
Product $ 3,600 $ 2,573
License 5,421 5,490
Service 3,346 2,158
Total Revenue 12,367 10,221
Cost of revenue:
Product 2,235 2,019
License 937 1,360
Service 1,423 1,544
Total Cost of 4,595 4,923
Revenue
Gross Margin 7,772 5,298
Operating expenses:
Research & development 2,178 1,938
Sales & marketing 2,237 2,292
General & administrative 2,968 2,871
Restructuring charge 306
-
Amortization of purchased 211 98
intangible assets
Adjustment of acquisition (249)
liabilities -
Adjustment of acquisition (1,149)
deferred consideration -
Stock compensation 101 14
Total operating 7,752 6,064
expenses
Income (loss) from 20 (766) operations
Interest income, net 82 100
Exchange loss, net (18) (4)
Income (loss) before
provision for income taxes 84 (670)
Provision for income
taxes - -
Net income (loss) $ 84 $ (670)
Basic net income (loss) per $ 0.00 $ (0.02) Ordinary Share
Shares used in computing basic net income (loss) per Ordinary 30,676,240 30,396,080 Share
Diluted net income (loss) per $ 0.00 $ (0.02) Ordinary Share
Shares used in computing diluted net income (loss) per Ordinary 31,474,350 30,396,080 Share
Basic net income (loss) per $ 0.01 $ (0.04) equivalent ADS Diluted net income (loss) per $ 0.01 $ (0.04) equivalent ADS
TRINTECH GROUP PLC
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
Three months
ended April 30,
2004 2003
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income (loss) $ 84 $ (670)
Adjustments to reconcile net
income (loss) to
net cash provided by (used
in) operating activities:
Depreciation and 434 834
amortization
Stock compensation 101 14
Effect of changes in (176) (124)
foreign currency exchange
rates
Changes in operating
assets and liabilities:
Reductions to 656 (552)
restricted cash
deposits
Inventories (60) 1,173
Accounts receivable 1,922 473
Prepaid expenses and (384) (188)
other assets
Value added tax 155 (213)
receivable
Accounts payable (1,580) (738)
Accrued payroll and (560) (297)
related expenses
Deferred revenues 1,065 1,207
Value added tax (250) (300)
payable
Warranty reserve (97)
-
Government grants (395)
repayable and related -
loans
Other accrued (67) (1,724)
liabilities
Net cash provided by (used 1,340 (1,597)
in) operating activities
CASH FLOWS FROM INVESTING
ACTIVITIES:
Purchases of property and (114) (288)
equipment
Payments relating to (362) (1,119)
acquisitions
Net cash used in investing (476) (1,407)
activities
CASH FLOWS FROM FINANCING
ACTIVITIES:
Principal payments on (96) (53)
capital leases
Issuance of ordinary shares 130 27
Repurchase of ordinary (454)
shares -
Expense of share issue (10)
-
Proceeds under bank 857
overdraft facility -
Net cash provided by 24 377 financing activities
Net increase/(decrease) in 888 (2,627) cash and cash equivalents Effect of exchange rate (66) 70 changes on cash and cash equivalents Cash and cash equivalents at 36,864 42,559 beginning of period Cash and cash equivalents at $ 37,686 $ 40,002 end of period
Supplemental disclosure of
cash flow information
Interest paid $ 11 $ 23
Taxes paid $ 212 $ 1
Supplemental disclosure of
non-cash flow information
Acquisition of property $ $ 87
and equipment under -
capital leases
TRINTECH GROUP PLC
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA NET INCOME
(LOSS)
(U.S. dollars in thousands)
Three months
ended April 30,
2004 2003
Net income (loss) $ 84 $ (670)
Adjustments:
Deprecation, 185 (325)
amortization and
impairment
Stock compensation 101 14
Restructuring 306 -
charge
Interest income, (82) (100)
net
Income taxes -
-
Adjusted Earnings Before $ 594 $ (1,081) Interest Taxation Deprecation and Amortization (EBITDA) net income (loss)
Note: Management believes Adjusted EBITDA net income (loss) is an important measure of Company performance without consideration of the non-operating expense adjusted above as it presents a clearer view of operational performance changes between the comparative periods.
TRINTECH GROUP PLC
RECONCILIATION OF OPERATING EXPENSES TO ADJUSTED EBITDA OPERATING
EXPENSES
(U.S. dollars in thousands)
Three months
ended April 30,
2004 2003
Total operating expense $ 7,752 $ 6,064
Adjustments:
Restructuring (306) -
charge
Deprecation (208) (375)
Amortization of (211) (98)
purchased intangible
assets
Impairment of -
goodwill and purchased -
intangible assets
Adjustment of 249 -
acquisition liabilities
Goodwill
impairment reversal on
the adjustment
Of acquisition 1,149
deferred consideration -
Stock Compensation (101) (14)
Adjusted EBITDA $ 7,175 $ 6,726
operating expenses
Note: Management believes Adjusted EBITDA operating expense is an important measure of Company performance without consideration of the non-operating expense adjusted above as it presents a clearer view of operational performance changes between the comparative periods.
The full press release including tables can be downloaded from the following link: http://hugin.info/130706/R/946975/133538.pdf