Electronic payments specialist Trintech reported its second consecutive quarterly loss after revenue was reduced by technical problems with the company's chip and pin technology.
Trintech's loss amounted to $380,000 (€330,000) in the third quarter, compared with a year-earlier profit of $430,000, according to figures released by the Dublin-based company. It posted a loss of $3.7 million in the second quarter. The third-quarter loss was in the middle of analysts' estimates, chief executive Cyril McGuire said.
The company had a per-share loss of $0.01, after reporting earnings per share of $0.01 in the third quarter of the previous year.
Revenue for the three months to the end of October dropped 25 per cent to $11.4 million, led by a 63 per cent decline in Trintech's product revenue.
"Growth remains the issue and the basis for our recommendation of reduction," according to Gerry Hennigan, analyst at Goodbody Stockbrokers.
Trintech warned in August that it would miss analysts' estimates for second-quarter revenue because of faults in components of the chip and pin technology. These have been rectified and Trintech began redistributing the products last month.
The company also attributed some of the fall to challenging market conditions.
"Last year we had a strong year in the UK and Ireland, and demand for chip and pin technology has now been largely satisfied in the UK because they had to meet a deadline of January 2005," Mr McGuire said. "That market is maturing, so now we are looking for new markets."
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 network.Trintech said yesterday that British mobile phone operator O2 chose its ReconNet system to automate the verification and reconciliation of its cash, cheques and credit card transactions. O2 plans to use another Trintech system, ExecuNET, for business analysis and to identify trends in its funds management processes.
Third-quarter earnings were also hurt by investment in the OpenPay 4000 system, which is used for secure payment at unattended petrol pumps.
Trintech is considering expanding and is reviewing acquisition opportunities in the US and Europe. The company had cash equivalents of $35.7 million at the end of October.
