Trintech, the Dublin-based software company, blamed weak sales in Germany and the prospect of a Middle East war for yesterday's fourth-quarter results, which were below analysts expectations.
The firm, which provides e-payments technology, reported a net loss of $23.7 million (€21.9 million) for the three months to January 31st, down from $52.5 million in the same period of 2002.
Trintech generated revenues of $10.5 million during the fourth quarter, down from $15.5 million for the same period in the previous year, and below some analysts expectations. Most of this shortfall was due to a further slowdown in hardware sales in the German market, according to company broker Davy, which had guided revenues of $11.7 million.
Mr Cyril McGuire, Trintech chief executive, described the results as "solid". He added: "Germany continues to disappoint and the threat of war is a real issue, which is affecting customer confidence in the Middle East."
A team of five Trintech staff working on a professional services project at the Gulf Bank in Kuwait were recently withdrawn from the state due to security concerns. The firm also had other big customers in the region, said Mr McGuire.
Operating costs fell to $26.7 million in the fourth quarter, down from $58.9 million in the same period the previous year. Trintech reported a loss per share of $1.55 in the quarter, compared to $3.44 in the previous year.
Trintech's full-year losses were $44.8 million for the fiscal 2003 compared to $100 million in 2002 following extensive cost cutting. Mr McGuire said he did not intend to carry out any further significant restructuring plans.
During the quarter, Trintech only managed to purchase shares worth $140,000 following the takeover panels decision to allow it to buy back $5 million worth of shares. Mr McGuire said low trading volumes had prevented the firm from buying more of its shares.
Trintech shares were down one US cent at $1.75 on the Nasdaq as the Irish Stock Exchange closed yesterday.
Meanwhile, Trintech said it had signed a deal with Citibank yesterday to supply its e-payments technology to the bank's card-acceptance division.
