DUBLIN, Ireland and DALLAS, Aug. 12, 2005 (PRIMEZONE) -- Trintech Group PLC (Nasdaq:TTPA), a leading provider of transaction reconciliation and secure payment infrastructure solutions, announced today that it expects revenues for the second quarter, ended July 31, 2005, to be in the range of $12.25 million to $12.75 million. Revenue is lower than previously expected primarily due to a slowdown in demand for Chip and PIN (EMV) solutions in Europe and delays in the adoption of EMV unattended payment solutions.
Trintech also announced that it expects to record a one-time exceptional charge in the second quarter of approximately $4.0 million through the creation of an additional provision relating to the extension of warranty periods for certain hardware products deployed in Europe. Trintech will work closely with its customers and incur repair and rework costs with a view to resolving certain technical difficulties currently being experienced with these products. Including the one-time charge of $4.0 million, Trintech is expected to incur a net loss for quarter two in the range of $3.7 million to $3.9 million. Trintech remains focused on both growing its market share and profitability in the payments business while implementing its international growth strategy for unattended payment systems and PayWare software solutions.
Trintech also announced today that its FMS division, which provides transaction reconciliation software and services solutions, performed strongly in quarter two. This performance, combined with tight fiscal management of the Company's cost base, compensated for the reduction in hardware product revenues. As a result, Trintech expects that gross margins, operating expenses, and net income, prior to giving effect to the one-time charge, will be in line with previous Company expectations for quarter two stated on May 25, 2005, as follows:
-- Gross margins to be in the range of 60% to 64%. -- Operating expenses to be in the $8.5 million to $9.2 million range. -- Net income to be in the range of $100,000 to $300,000.
As at July 31, 2005 Trintech had cash and cash equivalents amounting to $38.8 million.
Full second quarter results will be announced and discussed by the Company on Wednesday, August 24, 2005. All queries on this announcement will be addressed on that date.
About Trintech
Trintech is a leading provider of transaction reconciliation and payment infrastructure solutions to retailers, financial institutions, payment processors and network operators globally. Built on 18 years of experience, Trintech's solutions manage each area of the payment transaction cycle from authentication, authorization, settlement, dispute resolution and reconciliation -- enabling its customers to reduce transaction costs, eliminate fraud, minimize risk, maximize cash flow and increase profitability. Trintech can be contacted in Ireland at Trintech Building, South County Business Park, Leopardstown, Dublin 18 (Tel: +353 1 2074000), in the U.S. at 15851 Dallas Parkway, Suite 855, Addison, TX 75001 (Tel: +1 972 701 9802), and in the U.K. at 186-192 Darkes Lane, Potters Bar, Hertfordshire, EN6 1AF (Tel: +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 revenues, gross margins, operating expenses, net loss, and the amount of an exceptional charge in the second quarter of this fiscal year and relating to its cash balances at July 31, 2005. Factors that could cause or contribute to such differences include the closing of the company's books, customary quarter-end accounting procedures and finalization of the additional warranty provision related to the company's business. Actual performance may also be affected by other factors more fully discussed in Trintech's latest Form 20-F for the fiscal year ended January 31, 2005, and 6K for the quarter ended April 30, 2005 filed with the U.S. Securities and Exchange Commission (www.sec.gov). Lastly, Trintech assumes no obligation to update these forward-looking statements.