DUBLIN, Ireland and DALLAS, Aug. 20 /PRNewswire-FirstCall/ -- Trintech
Group Plc (Nasdaq: TTPA), a leading global provider of integrated financial
governance, transaction risk management, and compliance solutions today
announced revenues of $10.5 million for the second quarter ended July 31,
2008, an Adjusted EBITDA net income of $215,000 and a net loss for the quarter
of $965,000.
Highlights:
-- Revenue amounted to $10.5 million compared to $8.9 million in Q2 last
year, representing 18% growth. The increase was primarily due to an increase
in EMEA revenues and new revenues generated from the Movaris business.
-- Gross margin amounted to $7.1 million in Q2, representing 68% of
revenue, compared to $6.0 million and 68% in Q2 last year.
-- Trintech increased expenditure in research and development by 24% from
$1.3 million in Q2 last year to $1.6 million in the same quarter in the 2009
fiscal year. The increase was primarily due to the inclusion of costs relating
to the recently acquired Movaris business.
-- Trintech increased expenditure in sales and marketing by 17% from $3.0
million in Q2 in the 2008 fiscal year to $3.5 million in the same quarter in
the 2009 fiscal year. The increase was primarily due to the inclusion of costs
relating to the recently acquired Movaris business.
-- General and administrative expenses decreased by 4% in Q2 of the 2009
fiscal year compared to Q2 of the 2008 fiscal year to $2.6 million compared to
$2.7 million in the prior fiscal year. The decrease was primarily due to a
reduction in salary, legal and professional and occupancy costs which more
than offset the increase in the quarter due to the inclusion of costs relating
to the recently acquired Movaris business and the impact of the weakening US
Dollar against the euro.
-- Trintech generated an Adjusted EBITDA net income of $215,000 for Q2 of
the 2009 fiscal year compared to an Adjusted EBITDA net loss of $210,000 for
the corresponding period in the prior year.
-- Combined basic and diluted net loss per equivalent ADS for the quarter
ended July 31, 2008 was $0.06, compared with a basic and diluted net loss per
equivalent ADS of $0.07 for the quarter ended July 31, 2007.
Cyril McGuire, Chairman & Chief Executive Officer said, "Trintech's
performance in Q2 was solid with revenue growth of 18% and adjusted EBITDA net
income of $215,000 despite the challenges of the economic environment.
However, the continued uncertainty in the market has negatively impacted our
revenue and earnings results and business outlook for the rest of the year.
Our management focus will continue to be on driving revenue growth and EBITDA
profitability while extracting cost synergies from our recent acquisition of
Movaris and maintaining a strong vigilance on our operating cost base given
our outlook for the business. Following shareholder approval of our share
buy-back at our recent AGM, we intend to initiate the purchase of our stock as
our board strongly feels that the current Trintech share price does not
accurately reflect the true enterprise value of the business."
Paul Byrne, President, added, "In spite of the difficult economic
environment, we believe our strategy of focusing on a broader product set,
expanding our presence in the international market, and ensuring an efficient
operating cost base will enable Trintech to deliver continued year over year
growth in revenue and EBITDA profitability."
Recent Highlights include:
Trintech announced that Somerston Hotels Ltd selected ReconNET to improve
reconciliation and exception management processes while increasing operational
efficiencies. Somerston Hotels owns and operates 32 hotels throughout the
United Kingdom under two international brands, Express by Holiday Inn and
Ramada Encore. With 31 Express by Holiday Inn hotels, Somerston Hotels is the
largest franchisee of the brand in the United Kingdom.
Trintech announced that BAE Systems Shared Services has selected AssureNET
GL to increase the timeliness and accuracy of their balance sheet account
reconciliations. AssureNET GL is an automated reconciliation software system
that assists in performing this critical business function, while facilitating
internal controls and compliance. BAE Systems, with operations across five
continents and customers and partners in more than 100 countries, develops,
delivers, and supports advanced defence and aerospace systems in the air, on
land, and at sea.
Trintech announced the newest release of its best-of-breed financial
governance application suite, Unity 10.1, for enterprise risk management,
accounting compliance, account reconciliation, financial close, and financial
reporting. Unity 10.1 delivers enhanced management oversight capabilities of
the reconciliation processes as they pertain to period-end financial close and
reporting processes.
Trintech announced the latest release of its innovative Lifecycle
Management (LCM) Payments solution for financial institutions. LCM Payments is
a .NET browser-based account reconciliation and positive pay solution that
enables financial institutions to provide their clients with a diverse range
of real-time capabilities, based on customer-specific business requirements,
while consolidating multiple existing systems into a single integrated
platform. LCM Payments supplements other treasury management services
solutions with advanced fraud prevention technology to provide clients with
complete visibility into the status of their payments.
Concuity, the healthcare division of Trintech, announced the availability
of PriceAdvisor(TM), a web-based solution that will enable hospitals to
accurately produce patient estimates by utilizing payer contracts, actual
claim data, and patient benefit information.
Concuity also announced its partnership with Financial Healthcare Systems
(FHS Corp), a provider of a web-based solution for credible procedural price
estimates that provides patients with specific out-of-pocket costs, allowing
them to better plan for impending medical expenses, while giving hospitals the
ability to more accurately project revenue. By partnering with FHS Corp,
Concuity further enhances its value proposition for hospitals seeking to
increase customer satisfaction, streamline operations, and improve revenue
calculation.
Trintech announced that it has been named a "Cool Vendor" in the Gartner
report titled "Cool Vendors in Compliance and Risk Management, 2008.,
published on April 24, 2008. Trintech was included in the report by Gartner
analyst John E. Van Decker, et al. The report asserts "firms that are focusing
their Governance, Risk and Compliance, or GRC efforts on the office of finance
and want to bring in more innovative approaches to financial governance should
consider best-of-breed applications and ERP offerings in this emerging
market."
Trintech held its 9th Annual General Meeting (AGM) as a public company in
Dublin, Ireland. At the AGM, Cyril McGuire, Chairman and CEO, welcomed the
approval by shareholders of all the ordinary and special resolutions including
the approval of a share buy-back agreement with First Analysis Securities
Corporation. The timing and amount of any repurchase by Trintech under the
share buy-back program will be dependent upon market conditions, securities
law limitations and other corporate considerations.
Trintech announced the successful conclusion of its twelfth annual
US-based Customer Conference held May 19-22 at the Royal Sonesta Hotel in New
Orleans, Louisiana. The Conference featured KPMG Advisory Services Principal,
Richard Beacham; KPMG Advisory Services Director, Mike Scanlon; Prodiance
President and CEO, Soheil Saadat; and more than 200 accounting and treasury
professionals from world-class organizations, including eBay, ANZ Bank, Nike,
Target, Monster Worldwide, and Yahoo; and sponsors PNC, Solutran, Harland
Clarke, and Garda. This year's conference theme focused on helping clients
make financial governance a strategic asset in their business.
Results Overview:
Revenue for the second quarter was $10.5 million compared with $8.9
million for the corresponding quarter last year, an increase of 18%. The
increase was primarily due to an increase in EMEA revenues and new revenues
generated from the Movaris business.
Software license revenue for the quarter ended July 31, 2008 was $5.4
million compared with $4.5 million for the corresponding quarter in the prior
year, an increase of 19%. The increase was primarily due to an increase in
EMEA revenues and new revenues generated from the Movaris business.
Service revenue for the second quarter increased 17% to $5.1 million from
$4.4 million for the corresponding quarter in the prior year. The increase was
primarily due to an increase in EMEA revenues and new revenues generated from
the Movaris business.
Total gross margin for the second quarter was $7.1 million, an increase of
17% from $6.0 million in the corresponding quarter in the prior year.
Total operating expenses for the second quarter were $8.0 million, an
increase of 11% from $7.2 million in the corresponding quarter in the prior
year. Adjusted EBITDA operating expenses for the quarter ended July 31, 2008
were $7.1 million, an increase of 10% on the Adjusted EBITDA operating
expenses of $6.5 million for the corresponding period in the prior year.
Consolidated Adjusted EBITDA net income was $215,000 for the second
quarter compared to an Adjusted EBITDA net loss of $210,000 for the
corresponding quarter in the prior year.
Trintech's balance sheet remains strong with net cash and cash equivalent
balances of $15.9 million as of July 31, 2008. Net cash utilized for the three
months ended July 31, 2008 was $545,000, which included cash utilized in
operations of $120,000 and payments related to acquisitions of $398,000.
Included in payments related to acquisitions is a $352,000 purchase
consideration payment to the ex-owners of the Assurity business that Trintech
acquired in February 2006.
Trintech will host a conference call to discuss its financial results and
business outlook beginning at 15:30hrs (UK Time) today, Wednesday, August 20,
2008. Please see advisory for information on the call.
A web simulcast of Trintech's conference call reviewing our performance
for Q2 fiscal year 2009 and our business outlook for Q3 and full fiscal year
2009 will be broadcast live today, Wednesday, August 20, 2008 at 15:30 hrs (UK
Time), 10:30 hrs (NY Time) and 07:30 hrs (CA Time) and thereafter for 1 year
at http://www.trintech.com/investor. An instant telephone replay will also be
available for 10 days by dialing +44 1452 55 00 00 and entering the following
access number (5 9 6 3 2 6 9 2 #).
About Trintech Group
Trintech Group Plc (Nasdaq: TTPA) is a leading global provider of
integrated financial governance, transaction risk management, and compliance
solutions. The Company enables companies to achieve excellence in financial
governance and performance management through a comprehensive platform of
account reconciliation, accounting compliance, and financial reporting
applications across the financial lifecycle.
Over 570 leading global organizations are realizing the benefits of
Trintech solutions every day to gain greater control, visibility, and
efficiency across financial processes; improve financial performance through
stronger management of revenue and cost cycles; ensure the accuracy and
integrity of financial data, thereby reducing the risk of material weaknesses
and restatements and to drive immediate efficiencies and cost reductions in
financial operations through automation and scalability. Trintech's customers
include retail chains, commercial companies, financial institutions and
healthcare providers in the United States, the UK and the Republic of Ireland,
continental Europe and Australia. Top customers in recent years include
Accenture, Regis Corporation, Sodexho Operations, Target Stores, Providence
Health and Cleveland Clinic.
Trintech's technology enables our customers to ensure their internal
financial processes are optimized, improve performance through stronger
management of revenue and cost cycles, ensure the accuracy and integrity of
financial data, improve the quality and efficiency of the financial close
process, as well as reduce the risk of material weaknesses and restatements.
For more information on how Trintech can help you increase confidence in
business performance and reduce financial risk, please contact us online at
http://www.trintech.com or at our principal business office in Addison, Texas,
or through an international office in Ireland, the United Kingdom, or the
Netherlands.
Trintech - 15851 Dallas Parkway, Suite 900 - Addison, TX 75001 - Tel 1 972
701 9802
Trintech UK Ltd. - Warnford Court, 29 Throgmorton St. - London EC2N2AT, UK
- Tel +44 (0) 20 7628 5235
Trintech Technologies - Block C, Central Park - Leopardstown, Dublin 18,
Ireland - Tel +353 1 293 9840
Trintech - Cypresbaan 9 - 2908 LT Capelle a/d Ijssel, The Netherlands -
Tel +31 (0) 10 8507 47
Forward Looking Statements
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 growth strategy for fiscal 2009, Trintech
management's belief that the company's broader product portfolio will drive
revenue and EBITDA growth, the expected benefits from the acquisition of
Movaris Inc., the expected benefits that BAE Systems Shared Services will
receive from its installation of AssureNET GL, the expected benefits that
Somerston Hotels Ltd will receive from its installation of ReconNET, and
Trintech's intention to buy back its shares. Factors that could cause or
contribute to such differences include Trintech's ability to accurately
predict future sales, its ability to accurately predict and meet customer
needs and to successfully position itself in the market, Trintech's ability to
ensure the performance of its products and services, and its ability to
improve the performance of its organization and ensure the long term health of
its business. 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,
2008 filed with the US Securities and Exchange Commission (www.sec.gov) and
subsequent filings with the US Securities and Exchange Commission. Lastly,
Trintech assumes no obligation to update these forward-looking statements.
Contact
Paul Byrne, President
Joseph Seery, VP Finance, Group
Trintech Group plc
+353 1 293 9840
paul.byrne@trintech.comjoseph.seery@trintech.com
TRINTECH GROUP PLC
CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands, except share and per share data)
July 31, January 31,
2008 2008
ASSETS
Current assets
Cash and cash equivalents $15,942 $23,766
Accounts receivable, net of allowance for
doubtful accounts of $72 and $24 at July 31,
2008 and January 31, 2008, respectively 7,281 6,507
Prepaid expenses and other current assets 1,732 1,373
Net current deferred tax asset 242 234
Total current assets 25,197 31,880
Non-current assets
Restricted cash 338 338
Property and equipment, net 1,409 1,597
Net non-current deferred tax asset 328 136
Intangible assets, net 6,602 4,534
Goodwill 23,322 17,126
Total non-current assets 31,999 23,731
Total assets $57,196 $55,611
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable 1,224 515
Accrued payroll and related expenses 2,065 2,156
Deferred consideration 2,970 1,049
Net current deferred tax liability - 231
Income taxes payable 140 184
Other accrued liabilities 1,905 1,718
Deferred revenues 9,073 8,317
Liabilities held for sale and in discontinued
operations 77 141
Total current liabilities 17,454 14,311
Non-current liabilities
Capital leases due after more than one year 118 190
Deferred consideration - 2,000
Income taxes payable 59 119
Net non-current deferred tax liability 222 -
Deferred rent less current portion 385 427
Total non-current liabilities 784 2,736
Series B preference shares, $0.0027 par value
10,000,000 authorized at July 31, 2008 and
January 31, 2008, respectively
None issued and outstanding - -
Shareholders' equity:
Ordinary Shares, $0.0027 par value:
100,000,000 shares authorized;
33,453,135 and 32,413,719 shares issued and
31,910,955 and 31,821,201 shares outstanding
at July 31, 2008 and January 31, 2008,
respectively. 90 87
Additional paid-in capital 252,827 251,029
Treasury shares (at cost, 526,680 and 592,518
at July 31, 2008 and January 31, 2008,
respectively) (898) (1,011)
Accumulated deficit (209,588) (208,135)
Accumulated other comprehensive loss (3,473) (3,406)
Total shareholders' equity 38,958 38,564
Total liabilities and shareholders'
equity $57,196 $55,611
TRINTECH GROUP PLC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except share and per share data)
Three months Six months
ended July 31, ended July 31,
2008 2007 2008 2007
Revenue
License $5,373 $4,529 $10,271 $8,018
Service 5,112 4,368 9,855 8,248
Total revenue 10,485 8,897 20,126 16,266
Cost of revenue
License 588 423 1,086 779
Amortization of
purchased technology 226 164 442 328
Service 2,577 2,272 4,821 4,283
Total cost of revenue 3,391 2,859 6,349 5,390
Gross margin 7,094 6,038 13,777 10,876
Operating expenses
Research and
development 1,558 1,254 3,050 2,529
Sales and marketing 3,458 2,951 6,537 5,467
General and
administrative 2,554 2,651 5,043 4,996
Restructuring charge 54 - 54 -
Amortization of
purchased intangible
assets 415 385 810 770
Total operating
expenses 8,039 7,241 15,494 13,762
Loss from operations (945) (1,203) (1,717) (2,886)
Interest income, net 74 292 192 582
Exchange (loss)
gain, net (4) 23 101 197
Loss before provision
for income taxes (875) (888) (1,424) (2,107)
Provision for
income taxes (90) (161) (29) (304)
Net loss $(965) $(1,049) $(1,453) $(2,411)
Weighted-average
shares used in
computing basic
and diluted net loss
per Ordinary Share 31,910,955 31,298,752 31,900,826 31,262,073
Basic and diluted loss
per Ordinary Share $(0.03) $(0.03) $(0.05) $(0.08)
Basic and diluted
loss per equivalent ADS $(0.06) $(0.07) $(0.09) $(0.15)
TRINTECH GROUP PLC
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA NET INCOME (LOSS)
(U.S. dollars in thousands)
Three Months ended Six Months ended
July 31, July 31,
2008 2007 2008 2007
Net loss $(965) $(1,049) $(1,453) $(2,411)
Adjustments:
Depreciation 190 151 392 301
Amortization of purchased
intangible assets 641 549 1,252 1,098
Share-based compensation 279 270 539 534
Restructuring charge 54 - 54 -
Interest income, net (74) (292) (192) (582)
Income taxes 90 161 29 304
Adjusted Earnings Before
Interest, Taxation,
Depreciation, Amortization,
Restructuring and Share-based
compensation (EBITDA) net
income (loss) $215 $(210) $621 $(756)
Adjusted Basic and diluted income
(loss) per Ordinary Share $0.01 $(0.01) $0.02 $(0.02)
Adjusted Basic and diluted income
(loss) per equivalent ADS $0.01 $(0.01) $0.04 $(0.05)
Note: Management believes Adjusted EBITDA net income (loss) is an
important measure of Company performance without consideration of the
non-operating income and expense adjusted above as it presents a clearer
view of operational performance changes between the comparative periods.
RECONCILIATION OF OPERATING EXPENSES TO ADJUSTED EBITDA OPERATING EXPENSES
(U.S. dollars in thousands)
Three Months ended Six Months ended
July 31, July 31,
2008 2007 2008 2007
Total operating expenses from
operations $8,039 $7,241 $15,494 $13,762
Adjustments:
Depreciation (168) (138) (349) (275)
Amortization of purchased
intangible assets (415) (385) (810) (770)
Share-based compensation (262) (244) (508) (487)
Restructuring charge (54) - (54) -
Adjusted EBITDA operating
expenses $7,140 $6,474 $13,773 $12,230
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)
Six months
ended July 31,
2008 2007
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(1,453) $(2,411)
Adjustments to reconcile net loss to
net cash provided by operating activities:
Depreciation 392 301
Gain on sale of fixed assets - (5)
Amortization of purchased intangible assets 1,252 1,098
Share-based compensation 539 534
Effect of changes in foreign currency
exchange rates (69) (15)
Changes in operating assets and liabilities:
Accounts receivable 873 (1,067)
Prepaid expenses and other current assets (264) (121)
Value added tax receivable 62 40
Accounts payable 492 (46)
Accrued payroll and related expenses (512) 53
Deferred revenues 248 138
Value added tax payable 132 52
Warranty reserve (25) (13)
Other accrued liabilities (776) (170)
Net cash provided by (used in) operating
activities 891 (1,632)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment (148) (478)
Proceeds from sale of fixed assets - (331)
Payments relating to acquisitions (8,708) (887)
Net cash used in investing activities (8,856) (1,696)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on capital leases (73) (20)
Proceeds from sale of fixed assets - 338
Issuance of ordinary shares 65 266
Proceeds under bank overdraft facility - 1,094
Increase in restricted cash deposits - (338)
Net cash (used in) provided by financing
activities (8) 1,340
Net decrease in cash and cash equivalents (7,973) (1,988)
Effect of exchange rate changes on cash and
cash equivalents 149 11
Cash and cash equivalents at beginning of
period 23,766 25,766
Cash and cash equivalents at end of period $15,942 $23,789
Supplemental disclosure of cash flow information
Interest paid $17 $33
Taxes paid $164 $13
Supplemental disclosure of non-cash flow
information
Acquisition of property and equipment
under capital leases $(30) $(338)
Shares issued in connection with
acquisition $1,239 $-
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