Electronic payments specialist Trintech posted its first profit in three quarters after the company cut costs and booked a one-time gain from a legal settlement.
Net income for the three months to the end of January jumped 82 per cent to $2.1 million (€1.76 million), or seven cents a share, from $1.15 million, or four cents, a year earlier.
The Dublin-based company had reported a loss for the two previous quarters.
Fiscal fourth-quarter profit increased after operating expenses almost halved to $4.6 million and Trintech won $3.06 million from the vendors of Checkline in a legal settlement, the company said in a statement yesterday. However, quarterly revenue declined 23 per cent to $11.5 million, led by a 48 per cent drop in product sales.
The company's total revenue for the year ended January 31st was down to $48.6 million from $55.8 million the year before, a decrease of 13 per cent.
In the same period an operating loss of $2.8 million was posted, compared to an operating profit before of $1.5 million. A pre-tax loss of $1.9 million was recorded during the period, down from a $2.1 million profit.
Sales have suffered at Trintech through technical problems with the company's chip and pin technology, though the firm has since resolved the issues.
Trintech warned in August that it would miss estimates for second-quarter revenue because of faults in components of the chip and pin technology.
Trintech, whose shares are listed on the Nasdaq, makes security software for electronic payment systems such as ATMs and credit cards. The company provides technology for more than 1,200 customers, including Bank of America and O2. It also operates the ticket vending machines for the Luas tram network.
The company also announced yesterday it agreed to buy Assurity Technologies for as much as $5 million. The Kansas-based privately owned company provides an enterprise process management system for general ledger account reconciliation, review and certification.
"This acquisition of Assurity Technologies is another step in Trintech's growth strategy in the reconciliation and risk management market," said Cyril McGuire, Trintech's chief executive. "It will allow us to accelerate the growth of our flagship product, ReconNET . . . which is an important component in the execution of our strategic plan for this business."
NationsRent, a US company that rents equipment to construction workers, chose ReconNET to help verify and reconcile its bank deposits. Trintech expects the acquisition of Assurity to add to earnings in the second half of this financial year.
The company is expanding through acquisitions and investing in its funds management business in an effort to achieve long-term growth.
