DUBLIN, Ireland and DALLAS, Feb. 23, 2005 (PRIMEZONE) -- Trintech Group Plc (Nasdaq:TTPA) (Prime Standard:TTP), a leading provider of transaction reconciliation and payment infrastructure solutions, today announced fourth quarter revenues of $15.1 million and full fiscal year revenues of $55.8 million. Trintech also announced profits of $1.2 million, equivalent to a basic and diluted net income per equivalent American Depositary Share (ADS) of $0.07, for the fourth quarter and profits of $2 million, equivalent to a basic and diluted net income per equivalent American Depositary Share (ADS) of $0.13 and $0.12, for the full fiscal year.
Highlights
-- Revenue growth of 23 percent in Q4 compared to corresponding
quarter last year.
-- Revenue growth of 30 percent for the full fiscal year compared to
the prior fiscal year.
-- Trintech maintains profitability in Q4, with a net income of $1.2
million and an Adjusted EBITDA net income of $1.2 million. 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.
-- Full fiscal year profitability was $2 million and Adjusted EBITDA
net income for the full fiscal year was $3.4 million.
-- Basic and diluted net income per equivalent ADS for the quarter
ended January 31, 2005 was $0.07 compared with basic and diluted
net income per equivalent ADS of $0.04 for the corresponding
quarter ended January 31, 2004.
-- Basic and diluted net income per equivalent ADS for the year ended
January 31, 2005 was $0.13 and $0.12 compared with basic and
diluted net loss per equivalent ADS of $0.21 for the corresponding
year ended January 31, 2004.
Cyril McGuire, Chairman and Chief Executive Officer commenting on the results said: "Trintech's performance in Q4 and fiscal 2005 has been very solid with strong revenue and record profit growth. Our business continues to strengthen in our core markets of Funds Management and Reconciliation solutions with Chip and PIN solutions contributing strongly to the underlying growth. These results, along with our focused product set and global customer base, demonstrate the robustness of our business model which will position the company to deliver continued profitable growth and shareholder value."
Recent highlights include:
-- Trintech announced that Shell selected Trintech's PayWare SmartPIN software solution and Smart 5000 PIN Pads to enable smart card acceptance at all its company-owned petrol stations in the U.K. and Ireland.
-- Trintech announced that Faber, Coe & Gregg, a retailer of sundries, periodicals and paperbacks, selected ReconNET to automate the verification and reconciliation of bank deposits for its 70 locations. The installation of ReconNET will enable the company to perform daily deposit verification and reconciliation to reduce costs and gain greater reporting and financial controls.
-- Trintech announced that Friendly Ice Cream Corporation, a restaurant company and ice cream manufacturer, selected ReconNET to automate the verification and reconciliation of its credit card, bank deposits and gift card transactions for its 358 company-owned Friendly's restaurants. The installation of ReconNET will enable the company to streamline its daily reconciliation processes, reduce costs and gain greater reporting and financial controls.
-- Trintech announced that Ratner Companies, one of the industry's largest salon chains with nearly 900 salons and over 10,000 stylists, selected Trintech's ReconNET, DataFlow transaction network and Bank Fee Analysis to optimize funds management processes. Ratner Companies will automate the verification and reconciliation of its bank deposits with ReconNET, using Trintech's DataFlow Transaction Network to collect, format and deliver its daily banking data.
-- Trintech announced that S&K Famous Brands, a retailer of menswear with stores in 27 states, selected Trintech's DataFlow Transaction Network to collect, format and deliver daily banking data, and ReconNET to automate the verification and reconciliation of its cash and checks with its banks.
-- Trintech announced an expanded agreement that enables SunGard Treasury Systems to offer Trintech's Bank Fee Analysis system to its customers. Trintech's Bank Fee Analysis solution is designed to help businesses reduce bank fees and standardize fee reporting through automation of the analysis of monthly electronic bank statements.
-- Trintech announced that it had been granted a Terminal Quality Management (TQM) label from MasterCard for its range of industry-leading Chip and PIN terminals for point-of-sale and unattended environments.
-- Trintech announced that its application to revoke the admission of its American Depositary Shares (ADSs) had been approved by the Frankfurt Stock Exchange. The revocation will be effective on May 11, 2005. The Company re-affirmed its commitment to maintain its listing on the NASDAQ National Market.
Results Overview: Revenue for the year ended January 31, 2005 was $55.8 million compared with $43.1 million for the year ended January 31, 2004, an increase of 30 percent. Fourth quarter revenue increased 23 percent to $15.1 million compared with $12.3 million for the corresponding quarter last year.
Product revenue for the year ended January 31, 2005 increased 83 percent to $18.8 million this year from $10.3 million last year. Q4 product revenue increased 56 percent to $5.3 million compared with the corresponding quarter last year.
Software license revenue for the year ended January 31, 2005 increased 3 percent to $23.6 million. Q4 software license revenue increased 11 percent to $6.5 million from $5.8 million in the corresponding quarter last year.
Service revenue for the year ended January 31, 2005 increased 35 percent to $13.4 million from $9.9 million last year. Service revenue increased 7 percent to $3.3 million this quarter compared with the corresponding quarter last year. The year on year increase includes post-acquisition revenues of the DataFlow Services business.
Total gross margin for the year ended January 31, 2005 was $33.2 million, an increase of 37 percent from $24.2 million in the corresponding period last year. Total gross margin for the fourth quarter was $9.1 million, an increase of 26 percent from $7.3 million in the corresponding quarter last year.
Total operating expenses for the year ended January 31, 2005 increased 14 percent to $31.7 million from $27.7 million in the corresponding period last year. Adjusted EBITDA operating expenses for the year ended January 31, 2005 were $30 million, an increase of 17 percent on the Adjusted EBITDA operating expenses for the corresponding period last year.
Operating expenses in Q4 increased 26 percent to $8.4 million compared to the corresponding quarter last year. Adjusted EBITDA operating expenses for Q4 were $8.1 million, an increase of 31 percent on the Adjusted EBITDA operating expenses for Q4 last year.
Trintech's balance sheet remains strong with closing net cash and cash equivalent balances of $39.2 million as of January 31, 2005. Net cash generation for Q4 was $413,000. Cash generated from operating activities in the fourth quarter was approximately $587,000, cash generated from the issuance of ordinary shares was $105,000. Cash generated was partially offset by acquisition related payments of $127,000 in respect of acquisitions made in prior periods and $143,000 for the purchase of capital equipment.
During the quarter, Trintech did not repurchase shares under its ongoing stock repurchase program. As of January 31, 2005, approximately $4.1 million remained available for future stock repurchases under this program.
"Trintech's fourth quarter results again demonstrate the continued successful execution of our strategy of focussing on key growth markets, such as Chip and PIN solutions and treasury and cash management solutions. These strong results have continued to allow us to invest in future growth opportunities, such as unattended payment solutions, whilst still delivering increased profitability and cash generation", 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 (UK Time) today, February 23, 2005. Please see advisory for information on the call.
A web simulcast of Trintech's conference call reviewing our performance for Q4 fiscal year 2005 and our business outlook for Q1 fiscal year 2006 will be broadcast live today, Wednesday February 23rd, 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: 2563218#
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 UK at 186-192 Darkes Lane, Potters Bar, Hertfordshire, EN6 1AF (Tel: +44 (0) 1707 827000).
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, growth opportunities and Trintech's ability to successfully execute its business strategy and deliver continued growth and 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, 2004, and Form 6-K for the quarter ended October 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)
January 31, January 31,
2005 2004
ASSETS
Current assets:
Cash and cash equivalents $ 39,407 $ 36,864
Restricted cash 394 1,211
Accounts receivable, net of
allowance for doubtful
accounts of
$787 and $1,595 8,338 9,800
respectively
Inventories 1,184 824
Value added taxes 531 471
Prepaid expenses and other 3,748 2,706
assets
Total current assets 53,602 51,876
Property and equipment, net 824 988
Other non-current assets 3,148 3,994
Goodwill, net of accumulated
amortization and impairment
of $84,471
at January 31, 2005 and 8,613 7,459
January 31, 2004
respectively
Total assets $ 66,187 $ 64,317
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities:
Bank overdraft $ 568 $ -
Accounts payable 4,806 4,804
Accrued payroll and related 1,884 1,864
expenses
Other accrued liabilities 5,810 5,699
Value added taxes 630 819
Warranty reserve 395 356
Deferred revenue 8,946 8,739
Total current liabilities 23,039 22,281
Non-current liabilities:
Capital leases due after - 84
more than one year
Government grants repayable - 157
and related loans
Provision for lease - 441
abandonment
Total non-current liabilities - 682
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;
30,908,635 and
30,596,775 shares issued
and outstanding at
January 31, 2005 and 84 83
January 31, 2004,
respectively
Additional paid-in capital 246,283 245,965
Treasury shares (251,456
and 254,508 at January 31,
2005 and
January 31, 2004, (416) (268)
respectively)
Accumulated deficit (200,154) (202,175)
Accumulated other (2,649) (2,251)
comprehensive loss
Total 43,148 41,354
shareholders' equity
Total liabilities $ 66,187 $ 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 Twelve months
ended January 31, ended January 31,
2005 2004 2005 2004
Revenue:
Product $ 5,309 $ 3,403 $ 18,848 $ 10,318
License 6,474 5,826 23,567 22,867
Service 3,306 3,077 13,380 9,886
15,089 12,306 55,795 43,071
Total Revenue
Cost of
revenue:
Product 3,521 2,185 13,088 7,586
License 934 1,226 3,725 5,313
Service 1,499 1,618 5,812 6,020
Total 5,954 5,029 22,625 18,919
Cost of Revenue
Gross Margin 9,135 7,277 33,170 24,152
61% 59% 59% 56%
Operating
expenses:
Research & 2,378 2,220 9,169 8,280
development
Sales & 2,591 1,997 9,473 8,689
marketing
General & 3,283 2,256 12,008 10,587
administrative
(63) 38 288 745
Restructuring
charge
Amortization 212 213 846 507
of purchased
intangible
assets
Adjustment of - - (249) -
acquisition
liabilities
Adjustment of - - - (1,149)
acquisition
deferred
consideration
Stock (27) 116 -
compensation 15
Total 8,416 6,697 31,651 27,659
operating
expenses
Income (loss) 719 580 1,519 (3,507)
from operations
Interest 166 51 428 268
income, net
Exchange gain 178 (54) 197 79
(loss), net
Income (loss)
before
provision for 1,063 577 2,144 (3,160)
income taxes
Provision for 90 - (123) -
income taxes
Net income $ 1,153 $ 577 $ 2,021 $ (3,160)
(loss)
Basic net income $ 0.04 $ 0.02 $ 0.07 $ (0.10)
(loss) per
Ordinary Share
Shares used in
computing basic
net
income (loss) 30,864,544 30,544,851 30,786,268 30,314,419
per Ordinary
Share
Diluted net $ 0.04 $ 0.02 $ 0.06 $ (0.10)
income (loss)
per Ordinary
Share
Shares used in
computing
diluted net
income (loss) 32,625,270 31,284,015 32,361,102 30,314,419
per Ordinary
Share
Basic net income $ 0.07 $ 0.04 $ 0.13 $ (0.21)
(loss) per
equivalent ADS
Diluted net $ 0.07 $ 0.04 $ 0.12 $ (0.21)
income (loss)
per equivalent
ADS
TRINTECH GROUP PLC
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA NET INCOME
(LOSS)
(U.S. dollars in thousands)
Three months Twelve months
ended January 31, ended January 31,
2005 2004 2005 2004
Net income $ 1,153 $ 577 $ 2,021 $ (3,160)
(loss)
Adjustments:
146 282 723 1,417
Depreciation
212 369 846 1,643
Amortization of
purchased
intangible
assets
Adjustment - - (249) -
of acquisition
liabilities
Goodwill
impairment
reversal on the
adjustment
of - - - (1,149)
acquisition
deferred
consideration
Stock (27) 116 -
compensation 15
(63) 288 745
Restructuring 38
charge
Interest (166) (51) (428) (268)
income, net
Income (90) - 123 -
taxes
Adjusted Earnings $ 1,207 $ 1,188 $ $ (772)
Before Interest 3,440
Taxation
Depreciation 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 OPERATING EXPENSES
(U.S. dollars in thousands)
Three months Twelve months
ended January 31, ended January 31,
2005 2004 2005 2004
Total operating $ 8,416 $ 6,697 $ 31,651 $ 27,659
expense
Adjustments:
(38) (288) (745)
Restructuring 63
charge
(128) (267) (656) (1,972)
Depreciation
(212) (213) (846) (507)
Amortization of
purchased
intangible
assets
Adjustment - - 249 -
of acquisition
liabilities
Goodwill
impairment
reversal on the
adjustment
of - - - 1,149
acquisition
deferred
consideration
Stock (15) 27 (116) -
compensation
Adjusted EBITDA $ 8,124 $ 6,206 $ 29,994 $ 25,584
operating
expenses
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)
Twelve months
ended January 31,
2005 2004
CASH FLOWS FROM
OPERATING ACTIVITIES:
Net income (loss) $ 2,021 $ (3,160)
Adjustments to
reconcile net income
(loss) to
net cash provided by
operating activities:
Depreciation and 1,567 3,061
amortization
Stock compensation 116
-
Effect of changes (384) 673
in foreign currency
exchange rates
Changes in
operating assets
and liabilities:
Reductions to 817 1,921
restricted cash
deposits
Inventories (324) 2,378
Accounts 1,776 1,635
receivable
Prepaid (930) 12
expenses and
other assets
Value added tax (32) 223
receivable
Accounts (224) 301
payable
Accrued payroll (19) (685)
and related
expenses
Deferred 52 (73)
revenues
Value added tax (236) 411
payable
Warranty 13 (344)
reserve
Government (168) (399)
grants
repayable and
related loans
Other accrued (574) (4,403)
liabilities
Net cash provided by 3,471 1,551
operating activities
CASH FLOWS FROM
INVESTING ACTIVITIES:
Purchases of property (528) (605)
and equipment
Payments relating to (771) (6,855)
acquisitions
Net cash used in (1,299) (7,460)
investing activities
CASH FLOWS FROM
FINANCING ACTIVITIES:
Principal payments on (380) (446)
capital leases
Issuance of ordinary 403 761
shares
Repurchase of ordinary (338) (512)
shares
Expense of share issue (10)
-
Proceeds under bank 568
overdraft facility -
Net cash provided by 243 (197)
(used in) financing
activities
Net 2,415 (6,106)
increase/(decrease) in
cash and cash
equivalents
Effect of exchange 128 411
rate changes on cash
and cash equivalents
Cash and cash 36,864 42,559
equivalents at
beginning of period
Cash and cash $ 39,407 $ 36,864
equivalents at end of
period
Supplemental
disclosure of cash
flow information
Interest paid $ 30 $ 85
Taxes paid $ 584 $ 110
Supplemental
disclosure of non-cash
flow information
Acquisition of $ $ 87
property and -
equipment under
capital leases
The full press release including tables can be downloaded from the following link: http://hugin.info/130706/R/981809/145813.pdf