Trintech reported better-than-expected first quarter results yesterday, delivering a profit for the second quarter in a row.

The secure payments company, which returned to the black for the first time in four years in the fourth quarter, said net income in the three months ended April came to $84,000 (€69,332) compared to a loss of $670,000 at the same time last year.

Revenue rose by 21 per cent to $12.4 million as gross margins expanded to 63 per cent from 59 per cent in the previous quarter.

Analysts welcomed the results, particularly the improvement in margins.

"Revenues were up, margins were up and they maintained a profit in what is a seasonally weak quarter," said Mr Gerry Hennigan, analyst at Goodbody Stockbrokers.

Trintech said product revenue increased by 40 per cent to $3.6 million, driven by its chip and PIN business and pre-paid cellular opportunities in Europe.

Licence revenue was down 1 per cent to $5.4 million as the company continued to see slow investment decisions and longer sales cycles in most of its major markets.

Its service revenue, however, performed strongly, rising by 55 per cent to $3.3 million as it was boosted by a $500,000 contribution from its DataFlow Services acquisition.

Trintech chairman and chief executive Mr Cyril McGuire said the group expected to build on the progress it had made in the second quarter.

The group anticipates revenues in the $11.75-$12.75 million range in the second quarter, made up of product revenue of $3-$4 million, service revenue of $3-$4 million and licence revenue of $5-$6 million.

It expects net income to range from a loss of $500,000 to a profit of $250,000.