Electronic payments firm Trintech reported a slight fall in second-quarter sales yesterday but cut its pre-tax losses to just $1.3 million (€1.19 million) after tight cost controls at the Dublin-based firm.

The company made a net loss of $1.8 million in the three months to July 31st, down from $5.1 million in the same period last year. This equates to a loss of 12 US cents per share, down from a loss of 33 cents per share a year ago.

Mr Cyril McGuire, Trintech chief executive, said the firm achieved an important milestone in becoming cash-flow break-even from an operating perspective during the second quarter. He said Trintech should be making profits before year-end.

The company's operating expenses fell to $7.5 million, during the quarter, down $2 million from the same period in 2002 reflecting continued restructuring at the company.

The firm recorded a restructuring charge of $434,000 during the quarter.

Trintech said it generated $10.1 million in sales in the three months, slightly down on $10.9 million made in the same period last year. Sales in the first six months of 2003 were $20.3 million, down from $30 million in the first six months of 2002.

Mr McGuire said it was taking a little longer than expected to generate sales from Trintech's point-of-sale product in Britain, where a new "chip and pin" technology will shortly be introduced by major credit cards.

Chip and pin technology aims to cut down on credit card fraud and will be incorporated on cards in Britain and the Republic from 2005.

Mr McGuire said he was confident the new technology would deliver revenue growth in the future.

Mr Gerry Hennigan, analyst at Goodbody Stockbrokers, said the firm's balance sheet was healthy but he noted there was a sequential decline in deferred revenue to $8.4 million from $9.6 million.

Trintech continued to buy up its shares during the second quarter and has spent about $700,000 on this strategy since late last year. This amounts to about 330,000 shares, about 2.5 per cent of the firm's total stock.

Mr McGuire said the share buyback would continue as blocks of stock came on the market. He said the company had shareholder agreement to spend $5 million on the buyback programme.

This buyback programme has had a positive effect on the company's share price, which closed unchanged at $3.00 on the Nasdaq last night. Trintech implemented a one-for-four reverse share split in May 2002.