Payment and transaction software provider Trintech reported a sharp drop in revenue and a net income loss of $2.1 million (€1.64 million) for the first quarter.
In the first quarter of 2005, the Dublin-based company saw a net income of $392,000.
Turnover for the first quarter ended April 30, 2006 totalled $11.1 million compared to $13.1 million during the same period in the previous year. This was a decrease of 16 per cent.
The company attributed the drop in revenue to a poor performance in product and software licence revenues. Product revenues decreased by 40 per cent to $1.9 million during the first quarter of 2006 from $3.2 million during last year's first quarter. Software licence sales dropped by 15 per cent. This totalled $5.7 million in the first quarter, down from $6.7 million during the same period in 2005.
Despite the drop in revenue and net income loss, the company's performance "remains solid", Trintech's chairman and chief executive Cyril McGuire said in a conference call yesterday.
He pointed to Trintech's continued investment in its funds management systems division as an "encouraging" opportunity for growth.
The company recently acquired Assurity Technologies, which created a system designed for ledger account reconciliation and other financial processes.
It also opened a new office in the Netherlands and launched a financial services group.
Mr McGuire added in a statement that Trintech was "committed to migrating" its business model "towards a software and services business mix". The company's funds management systems division had a "strong performance" in the first quarter.
Trintech is also seeking to expand through "opportunities in software and services both organically and through strategic acquisitions," Mr McGuire said.
Total operating expenses in the quarter totalled $9.4 million, an increase of 16 per cent from $8.1 million in the same quarter in 2005.
The company's cash and cash equivalent balances totalled $32.7 million at the end of the first quarter. Net cash usage for the period was $2.1 million, of which $1.9 million went to acquisition payments for Assurity.
