Trintech returns to profitability as operating costs slashed
Payment solutions firm Trintech has announced a 17% increase in fourth quarter revenues to $12.3m (€9.7m) and a return to profitability.
Total revenue for the year ended January 31, 2004 was $43.1m (€34.02m) compared with $42.9m (€33.85m) for the year ended January 31, 2003, an increase of 1%.
Total operating expenses for the year ended January 31, 2004 fell by 54% to $27.7m (€21.93m) as compared to the corresponding period last year.
Cyril McGuire, Chairman and Chief Executive Officer said of the results said: "I am delighted to report a strong set of results for Q4 with Trintech returning to profitability and revenue growth. All key performance metrics were achieved creating a solid platform for future growth.
"Our financial position remains strong and our goal continues to be making Trintech more competitive, more focused and better positioned in the marketplace. Our solid performance in the quarter supports our strategy to focus on key core products and illustrates the robustness of our business model," McGuire added.
During the quarter, the company did not repurchase shares under its ongoing stock repurchase program.
As of January 31, 2004 approximately $4.4m (€3.42m) remained available for future repurchases under this program.
Powering the figures were a number of major e-payment deals signed with Dubai bank, the state bank of Mauritius, United Cinemas International (UCI) Uk Ltd and two English premiership football clubs, during the last 12 months.
Paul Byrne, Chief Financial Officer said :"Trintech's fourth quarter results demonstrate its continued execution in building the foundation for sustained profitability and enhanced shareholder value by focusing on revenue growth, margin expansion, stringent cost control and strong cash management.
"Revenue grew by 17% in Q4 compared to the prior year. Gross margins expanded again in Q4 to 59%. We are pleased that we continue to see reductions in our operating expenses and that Trintech has now been generating cash from operations for three consecutive quarters," he added.
Analysts described the results as positive - particularly the reduction in operating costs - and are waiting on a further update on present trading conditions expected this afternoon.
