DUBLIN, Ireland and DALLAS, May 25, 2005 (PRIMEZONE) -- Trintech Group Plc (Nasdaq:TTPA) (Prime Standard:TTP), a leading provider of transaction reconciliation and payment infrastructure solutions, today announced first quarter revenues of $13.1 million and net income of $392,000, equivalent to a basic and diluted net income per equivalent American Depositary Share (ADS) of $0.03 and $0.02, respectively.
Highlights
-- Revenue growth of 6 percent in Q1 compared to corresponding
quarter last year.
-- Trintech maintains profitability in Q1, with a net income of
$392,000 and an Adjusted EBITDA net income of $603,000. Adjusted
EBITDA net income for Q1 excludes amortization of purchased
intangible assets, depreciation, interest income, net and income
taxes.
-- Gross margins continue to expand to 64 percent in Q1, a sequential
increase from 61 percent for the previous quarter.
-- Basic and diluted net income per equivalent ADS for the quarter
ended April 30, 2005 was $0.03 and $0.02, respectively, compared
with basic and diluted net income per equivalent ADS of $0.01 for
the corresponding quarter ended April 30, 2004.
Cyril McGuire, Chairman and Chief Executive Officer commenting on the results said: "The results for Q1 were solid, with Trintech achieving continued profitable growth. Our strategy of focusing on key core products in our Payments and Funds Management Systems divisions is providing a good pipeline of new business. In what is still a cautious technology market, we are continuing to make investment in new products and new markets to strengthen our competitive position."
Recent highlights include:
-- Trintech announced that KinderCare Learning Centers selected Trintech's ReconNET to reconcile their ACH payments, credit card transactions and non-sufficient funds transactions. In addition, KinderCare Learning Centers selected Trintech's Bank Fee Analysis to monitor bank fees and secure consistent rates across accounts.
-- Trintech announced that Halifax Bank of Scotland (HBOS), one of the fastest-growing card issuers in the U.K., selected PayWare Resolve to more efficiently manage its cardholder disputes. As well as improving efficiency, PayWare Resolve will also help to ensure that HBOS remains compliant as card association dispute rules change.
-- Trintech announced that the Antioch Company selected PayWare ERP and Card Secure to enable secure and cost-effective payment card processing. Based in St. Cloud, Minnesota, the Antioch Company is a leading supplier of printed products, including diaries, journals, and photo-albums. By combining PayWare ERP and Card Secure together, the Antioch Company is able to automate the acceptance of all types of payment cards and ensure all transaction data is fully secure.
-- Trintech announced that Dublin's new state of the art Light Rail Transit (LRT) system -- Luas -- implemented Trintech's bank-accredited PayWare Merchant card authorization solution to power secure debit and credit card transactions at unattended touch-screen ticket vending machines.
-- Trintech announced that Peter Mark, with 68 hair salons in Ireland, selected Trintech's ReconNET to automate the verification and reconciliation of its cash, check and credit card deposits. ReconNET will enable Peter Mark to improve store-level efficiencies and reduce costs by tightening controls on all cash, checks and credit card payments.
-- Trintech announced that TUI Northern Europe, a division of TUI AG, the world's largest tourism and services group, selected Trintech's ReconNET to automate the verification and reconciliation of cash banking and credit card transactions, including foreign currency deposits from Forex Bureaus distributed throughout its 1,100 agencies.
-- Trintech announced the signing of a distributor agreement with Technolab International to market Trintech's reconciliation and data collection solutions in Mexico and Latin America. Under the terms of the agreement, Technolab International will sell, implement and provide support for Trintech's ReconNET funds management solution and the DataFlow Transaction Network to its bank and retail clients.
-- Trintech announced the release of ReconNET 7.1, the latest version of its flagship reconciliation and account balancing application. ReconNET 7.1 features increased levels of intelligence built into the system, reducing the expertise required at the user level, and interface improvements in navigation and display designed to improve productivity.
-- Trintech announced the availability of a new User Access Report to support ongoing Sarbanes-Oxley Section 404 documentation requirements for internal controls. The new ReconNET User Access Report enables companies to proactively analyze their user access controls and facilitate their efforts to document financial processes to comply with recurring Sarbanes-Oxley audit requirements.
-- Trintech announced at CeBIT 2005, that PayWare OpenPay has successfully passed Visa's PIN Entry Device (PED) Class B certification. Trintech is the first company in the world to achieve Visa PED Class B certification for devices operating in unattended environments.
-- Trintech announced that its application to revoke the admission of the Company's American Depositary Shares (ADSs) had been approved by the Frankfurt Stock Exchange. The revocation was effective on May 11, 2005. Accordingly, Trintech ADSs ceased trading on the Frankfurt Stock Exchange on that date.
-- Trintech announced the appointment of Paul Byrne as President, in addition to his role as Chief Financial Officer, where he will have overall responsibility for sales, marketing, development, operations, finance and corporate affairs.
-- Trintech announced the appointment of David Colf as VP & General Counsel for Trintech Group Plc. David previously worked with Hewlett Packard, where he held the post of Strategic Business Manager, bringing HP's digital TV business to market. Results Overview:
Revenue for the quarter ended April 30, 2005 was $13.1 million compared with $12.4 million for the corresponding quarter last year, an increase of 6 percent.
Product revenue for the quarter ended April 30, 2005 decreased 11 percent to $3.2 million compared to $3.6 million for the corresponding quarter last year.
License revenue for the quarter ended April 30, 2005 increased 24 percent to $6.7 million from $5.4 million for Q1 last year.
Service revenue for the quarter ended April 30, 2005 decreased 3 percent to $3.2 million from $3.3 million for the corresponding quarter last year.
Total gross margin for the quarter ended April 30, 2005 was $8.4 million, an increase of 8 percent from $7.8 million in the corresponding period last year.
Operating expenses in Q1 increased 5 percent to $8.1 million compared to $7.8 million in the corresponding quarter last year. Adjusted EBITDA operating expenses for Q1 this year were $7.8 million, an increase of 9 percent on the Adjusted EBITDA operating expenses for Q1 last year of $7.2 million.
Trintech's balance sheet remains strong with closing net cash and cash equivalent balances of $38.6 million. Net cash usage for Q1 was $607,000. Acquisition related payments of $1.2 million were made in respect of acquisitions made in prior periods, which was partially offset by cash generated from operating and financing activities of approximately $600,000.
During the quarter, Trintech did not repurchase shares under its stock repurchase program. As of April 30, 2005, approximately $4.1 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 and strong cash management. Revenue grew by 6 percent in Q1 compared to the prior year. Gross margins expanded again in Q1 to 64 percent. We are pleased that Trintech has now been generating cash from operations for six consecutive quarters," said Paul Byrne, President and Chief Financial Officer.
Trintech will host a conference call to discuss its financial results and business outlook beginning at 15:30hrs (U.K. Time) today, May 25th 2005. Please see advisory for information on the call.
A web simulcast of Trintech's conference call reviewing our performance for Q1 fiscal year 2006 and our business outlook for Q2 fiscal year 2006 will be broadcast live today, Wednesday, May 25th 2005 at 3:30 PM (U.K. 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 (5670225#).
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 cashflow 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 competitive position, pipeline of new business, growth opportunities and Trintech's ability to successfully execute its business strategy and deliver continued profitability and enhanced shareholder value. Factors that could cause or contribute to such differences include Trintech's 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, 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 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, 2005, filed with the U.S. 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,
2005 2005
ASSETS
Current assets:
Cash and cash equivalents $ 38,573 $ 39,180
Accounts receivable, net of allowance
for doubtful accounts of
$645 and $787 respectively 10,367 9,479
Inventories 1,375 1,184
Value added taxes 327 531
Prepaid expenses and other assets 1,904 2,105
Amounts due from / prepaid to related
parties 448 451
Total current assets 52,994 52,930
Restricted cash 670 672
Property and equipment, net 781 824
Other non-current assets 2,935 3,147
Goodwill, net of accumulated
amortization and impairment of $84,471
at April 30, 2005 and January 31,
2005 respectively 8,613 8,613
Total assets $ 65,993 $ 66,186
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Bank overdraft $ 614 $ 568
Accounts payable 4,188 4,806
Amounts due to related parties 448 --
Accrued payroll and related expenses 1,771 1,884
Deferred consideration 1,251 2,398
Other accrued liabilities 3,604 3,413
Value added taxes 903 630
Warranty reserve 345 395
Deferred revenue 9,211 8,946
Total current liabilities 22,335 23,040
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;
31,239,005 and 31,160,091 shares
issued and 31,019,967
and 30,908,635 shares outstanding
at April 30, 2005 and
January 31, 2005, respectively. 84 84
Additional paid-in capital 246,376 246,283
Treasury shares (219,038 and 251,456
at April 30, 2005 and
January 31, 2005, respectively) (363) (416)
Accumulated deficit (199,762) (200,154)
Accumulated other comprehensive loss (2,677) (2,651)
Total shareholders' equity 43,658 43,146
Total liabilities and
shareholders' equity $ 65,993 $ 66,186
TRINTECH GROUP PLC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except share and per
share data)
Three months
ended April 30,
2005 2004
Revenue:
Product $ 3,202 $ 3,600
License 6,699 5,421
Service 3,237 3,346
Total Revenue 13,138 12,367
Cost of
revenue:
Product 2,532 2,235
License 894 937
Service 1,322 1,423
Total Cost of
Revenue 4,748 4,595
Gross Margin 8,390 7,772
Operating
expenses:
Research &
development 2,240 2,178
Sales &
marketing 2,482 2,237
General &
administrative 3,214 2,968
Restructuring
charge -- 306
Amortization
of purchased
intangible
assets 212 211
Adjustment of
acquisition
liabilities -- (249)
Stock
compensation -- 101
Total
operating
expenses 8,148 7,752
Income from
operations 242 20
Interest
income, net 201 82
Exchange
gain (loss),
net 43 (18)
Income before
provision
for income
taxes 486 84
Provision
for income
taxes (94) --
Net income $ 392 $ 84
Basic net income
per Ordinary
Share $ 0.01 $ 0.00
Shares used in
computing basic
net
income per
Ordinary Share 30,929,028 30,676,240
Diluted net
income per
Ordinary Share $ 0.01 $ 0.00
Shares used in
computing
diluted net
income per
Ordinary Share 32,627,613 31,474,350
Basic net income
per equivalent
ADS $ 0.03 $ 0.01
Diluted net
income per
equivalent ADS $ 0.02 $ 0.01
TRINTECH GROUP PLC
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA NET INCOME
(U.S. dollars in thousands)
Three months
ended April 30,
2005 2004
Net income $ 392 $ 84
Adjustments:
Depreciation 106 224
Amortization of
purchased intangible
assets 212 211
Adjustment of
acquisition liabilities -- (249)
Stock compensation -- 101
Restructuring charge -- 306
Interest income, net (201) (82)
Income taxes 94 --
Adjusted Earnings Before
Interest, Taxation,
Depreciation and
Amortization (EBITDA) net
income $ 603 $ 595
Note: Management believes Adjusted EBITDA net income 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,
2005 2004
Total operating expenses $ 8,148 $ 7,752
Adjustments:
Restructuring charge -- (306)
Depreciation (89) (208)
Amortization of
purchased intangible
assets (212) (211)
Adjustment of
acquisition liabilities -- 249
Stock compensation -- (101)
Adjusted EBITDA operating
expenses $ 7,847 $ 7,175
Note: Management believes Adjusted EBITDA operating expenses 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
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
Three months
ended April 30,
2005 2004
CASH FLOWS FROM
OPERATING ACTIVITIES:
Net income $ 392 $ 84
Adjustments to
reconcile net income to
net cash provided by
operating activities:
Depreciation 106 224
Amortization 212 211
Stock compensation -- 101
Effect of changes in
foreign currency
exchange rates (57) (177)
Changes in operating
assets and
liabilities:
Inventories (196) (60)
Accounts
receivable (413) 2,128
Prepaid
expenses and
other assets (241) (590)
Value added
tax receivable 205 155
Accounts
payable (163) (1,580)
Accrued
payroll and
related
expenses (110) (560)
Deferred
revenues 249 1,065
Value added
tax payable 265 (250)
Warranty
reserve (48) --
Other accrued
liabilities 302 (67)
Net cash provided by 503 684
operating activities
CASH FLOWS FROM
INVESTING ACTIVITIES:
Purchases of property
and equipment (62) (114)
Payments relating to
acquisitions (1,194) (362)
Net cash used in (1,256) (476)
investing activities
CASH FLOWS FROM
FINANCING ACTIVITIES:
Principal payments on
capital leases (56) (96)
Issuance of ordinary
shares 146 130
Expense of share issue -- (10)
Proceeds under bank
overdraft facility 46 --
Reductions to
restricted cash
deposits 2 656
Net cash provided by 138 680
financing activities
Net (decrease)/increase
in cash and cash
equivalents (615) 888
Effect of exchange rate
changes on cash and cash
equivalents 8 (66)
Cash and cash
equivalents at
beginning of period 39,180 36,864
Cash and cash
equivalents at end of
period $ 38,573 $ 37,686
Supplemental disclosure of cash flow information
Interest paid $ 6 $ 11
Taxes
(received)/paid $ (158) $ 212
Supplemental disclosure
of non-cash flow
information
Acquisition of
property and
equipment under
capital leases $ -- $ --
The full press release including tables can be downloaded from the following link: http://hugin.info/130706/R/995701/151034.pdf