Copyright 2010 PR Newswire. All Rights Reserved
2009-11-25
- Revenue of $10.0 million, Adjusted EBITDA Net Income of $1.4 million
and Net Income of $512,000 for the Third Quarter; and
DUBLIN and DALLAS, Nov. 25 /PRNewswire-FirstCall/ -- Trintech Group Plc (Nasdaq:
TTPA), a leading global provider of integrated financial governance, transaction
risk management, and compliance solutions today announced revenues of $10.0
million for the third quarter ended October 31, 2009, an adjusted EBITDA net
income of $1.4 million and net income for the quarter of $512,000. For the nine
months ended October 31, 2009, the company recorded revenues of $29.1 million,
an adjusted EBITDA net income of $3.6 million and net income of $704,000.
Highlights:
-- Revenue amounted to $10.0 million for Q3 of the 2010 fiscal year which
represented a 1% reduction compared to the same period of the prior
year.
-- Trintech generated an adjusted EBITDA net income of $1.4 million for Q3
of the 2010 fiscal year compared to an adjusted EBITDA net income of
$550,000 for the corresponding period in the prior year representing
growth of 159%. Adjusted EBITDA net income per ADS was $0.09 for Q3 of
the 2010 fiscal year compared to $0.03 for the same period in the prior
year.
-- Trintech had cash balances of $18.9 million (including restricted cash
of $170,000) at October 31, 2009. The Company generated just over $1.0
million cash in Q3 of the 2010 fiscal year which compared to cash
generated of $899,000 in Q3 of the 2009 fiscal year. The cash generated
in Q3 of the 2009 fiscal year included once-off proceeds of $920,000
relating to the sale of discontinued operations.
-- Gross margin amounted to $6.7 million in Q3 of the 2010 fiscal year,
representing 67% of revenue, compared to $6.5 million representing 64%
of revenue in Q3 of the prior year.
-- Trintech incurred research and development expenditure of $1.3 million
in Q3 of the 2010 fiscal year compared with $1.6 million in Q3 of the
prior year, a decrease of 20%.
-- Trintech reduced expenditure in sales and marketing by 23% from $2.8
million in Q3 in the 2009 fiscal year to $2.2 million in the same
quarter in the 2010 fiscal year.
-- General and administrative expenses remained relatively flat at $2.3
million in Q3 of the 2010 fiscal year compared to Q3 of the 2009 fiscal
year.
-- Trintech generated a net income of $512,000 in Q3 of the 2010 fiscal
year compared with a net income of $555,000 in Q3 of the 2009 fiscal
year. Combined basic and diluted net income per equivalent ADS for the
quarter ended October 31, 2009 and for the same period in the prior year
was $0.03. The net income in Q3 of the prior year included a once-off
gain on sale of discontinued operations of $920,000.
Cyril McGuire, Chief Executive Officer, said "Our trading results in Q3
continued to perform strongly with improved adjusted EBITDA net income of $1.4
million for Q3 and $3.6 million for the nine month period ended October 31, 2009
representing 159% and 208% growth compared to the same periods last year.
Operating performance metrics continue to improve with margin growth,
profitability, operating costs, and cash generation exceeding our targets. Our
management focus in 2009 was to innovate and build market share in the emerging
Financial Governance, Risk and Compliance (GRC) and Revenue Cycle Management
marketplaces by investing and launching our next-generation integrated software
solutions to our clients. During the quarter, we experienced encouraging signs
of market confidence in our products in the US with the outlook in some of our
international markets also improving. Overall, we believe Trintech is well
positioned to capitalize on future market opportunities and to deliver revenue
and earnings growth in 2010 as the broader economy recovers."
Paul Byrne, President, added, "Trintech continues to see relatively strong
performance with rising adjusted EBITDA and Net Income as CFOs and other senior
finance professionals benefit from the strong financial returns our solutions
deliver as they seek to reduce costs, strengthen financial processes and
reporting whilst ensuring they continue to meet their compliance obligations. We
believe that we are capable of further growth in adjusted EBITDA and Net Income
as well as being well positioned to benefit from any economic upswing because of
increasing awareness of the financial returns that clients are generating across
all industry verticals we serve."
Results Overview:
Revenue for the third quarter ended October 31, 2009 was $10.0 million compared
with $10.1 million for the corresponding quarter in the prior year, a decrease
of 1%.
Software license revenue for the quarter ended October 31, 2009 was $5.4 million
compared with $4.8 million for the corresponding quarter in the prior year, an
increase of 12%. The increase was primarily due to stronger GRC license sales in
the quarter in the US and some international markets. Our European market
continues to show signs of weakness due to the continued economic uncertainty in
these markets negatively impacting our normal sale cycles, with customers
becoming more cautious, procurement processes lengthening and general
uncertainty creating significant challenges to close new business. Maintenance
revenues continued to be strong from existing customers in the US.
Service revenue for the quarter ended October 31, 2009 was $4.6 million compared
with $5.3 million for the corresponding quarter in the prior year, a decrease of
13%. The decrease was primarily due to a fall in revenues from our GRC business
in the US and European markets which was partially offset by an increase in
revenues from ASP services in our Healthcare business in the US.
Total gross margin for the third quarter ended October 31, 2009 was $6.7
million, an increase of 3% from $6.5 million in the corresponding quarter in the
prior year. Gross margin percentage increased to 67% in Q3 of the 2010 fiscal
year compared to 64% in the same period of the prior year. The increase in
margin percentage was primarily due to a change in the revenue mix.
Total operating expenses for the third quarter ended October 31, 2009 were $6.2
million, a decrease of 15% from $7.2 million in the corresponding quarter in the
prior year. The decrease in costs was primarily due to headcount reductions and
lower salary costs. There has also been a reduction in discretionary expenditure
in all areas of Trintech over the last year due to the general economic
environment.
Adjusted EBITDA operating expenses for the quarter ended October 31, 2009 were
$5.5 million, a decrease of 13% compared to adjusted EBITDA operating expenses
of $6.3 million for the corresponding period in the prior year.
Adjusted EBITDA net income was $1.4 million for the third quarter ended October
31, 2009 compared to an adjusted EBITDA net income of $550,000 for the
corresponding quarter in the prior year. This represented a 159% increase from
Q3 in the prior year and reflects the company's lower operating cost base.
Trintech's balance sheet remains strong with cash balances of $18.9 million
(including restricted cash of $170,000) as of October 31, 2009. Net cash
generated for the three months ended October 31, 2009 was just over $1.0
million.
Recent Highlights include:
During the quarter, Trintech released the following customer, partner and
product announcements:
Trintech announced that Hyatt Hotels Corporation had selected the hosted version
of its Unity Compliance software for financial process compliance. Unity
Compliance is a component of Trintech's Unity platform, a suite of modular
software that enables companies to meet their financial governance, risk
management and compliance goals.
Trintech announced that Amplifon (UK) had selected its ReconNET software for
financial process compliance. ReconNET is a component of Trintech's Unity
platform. Amplifon, listed on the STAR segment and the FTSE Italia Mid Cap Index
of the Milan Stock Exchange, is the worldwide leader in the distribution and
fitting of hearing aids and related services.
Trintech announced that OSM Corporate Services AS had selected its AssureNET
Express software for financial process compliance. AssureNET Express is a hosted
component of Trintech's Unity platform. OSM is an independent marine-services
provider founded in 1989. With a fleet of over 400 vessels and operating from 21
global offices, the company employs more than 7000 skilled employees worldwide.
Trintech announced that DTE Energy had selected its AssureNET software for
financial process compliance. AssureNET is a component of Trintech's Unity
platform. DTE Energy is a Detroit-based diversified energy company involved in
the development and management of energy-related businesses and services
nationwide.
Trintech announced that it had embedded the Fujitsu InterstageŽ XWandŽ XBRL
processing engine into the Trintech Unity Xtensible Financial Reporting (XFR)
software module, significantly extending the ability of Trintech clients to
create, manage and validate XBRL-compliant financial statements, including Edgar
Filer Manual (EFM) validation. Fujitsu Interstage XWand software helps companies
create, validate, report, collect, and analyze financial data in XBRL, a
standard format for disclosing financial information. By facilitating the
integration of XBRL within financial processes, Interstage XWand boosts the
level of automation and transparency throughout the entire financial reporting
cycle.
Trintech announced its next generation of Revenue Cycle Management Solution,
ClearContracts(TM) 9.0, which will enhance clients' revenue recovery processes
and month-end accounting process. Used by the largest and most sophisticated
hospital systems in the U.S., ClearContracts is a web-based suite of software
that enables healthcare providers to meet all of their managed care and revenue
recovery goals. Concuity's ClearContracts version 9.0 introduces a new level of
sophistication and functionality in Payer Compliance and Revenue Management
solutions. This new release offers customers a more immediate ROI with
significant enhancements to revenue recovery management and expected
reimbursement calculations.
Trintech announced the release of a white paper, 'Taking It To The Next Level:
Shared Services Centers Move Up the Maturity Curve', which suggests strategies
for shared services centers to maintain year-over-year ROI gains using advanced
automated technology. The white paper was jointly developed by Trintech and WNS
Global Services, a leading global provider of business process outsourcing (BPO)
services. Trintech also released a new white paper entitled 'The Business Case
for Change' which recommends an automated production platform for financial
reporting.
Trintech announced the release of AssureNET GL 5.0, the leading balance sheet
reconciliation software solution for automating and controlling the financial
close process. AssureNET GL 5.0 helps senior financial accounting managers
comply with increasingly complicated regulatory mandates such as the Sarbanes
Oxley Act while reducing costs and increasing confidence in financial results.
Trintech celebrated its "#1" Customer Base during a NASDAQ Opening Bell Ceremony
in New York in September 2009. During the ceremony, which celebrated a growing
blue chip customer base now exceeding 600, including Microsoft, Google,
McKesson, HSBC, Hewlett-Packard and eBay, Trintech also announced the
availability of Trintech's new Unity Xtensible Financial Reporting (XFR)
solution.
Trintech announced that it had increased the strength of its leadership team
with the addition of Chethan Gorur as Director of Interactive Data Services. As
part of his duties, Chethan will be tasked with thought leadership, strategy,
and product development efforts for Trintech's Unity Xtensible Financial
Reporting (XFR) solution, which includes embedded support for the report tagging
and output of financial statements with XBRL. Trintech also launched an industry
white paper entitled 'A Winning Strategy for Automating XBRL Compliance' which
is focused on driving automation in financial reporting.
Trintech announced the release of ReconNET 8.0, its next-generation
reconciliation and exception management software. ReconNET 8.0 allows finance
teams to automate even the most complex reconciliation and exception management
processes. The software expands a customer's ability to interface with external
platforms and databases, including Oracle 11g and more recent versions of
Microsoft SQL server and Windows operating systems.
Trintech will host a conference call to discuss its financial results and
business outlook beginning at 15:30hrs (UK Time) today, Wednesday, November 25,
2009. Please see advisory for information on the call.
A web simulcast of Trintech's conference call reviewing our performance for Q3
of fiscal year 2010 and our business outlook for Q4 fiscal year 2010 will be
broadcast live today, Wednesday, November 25, 2009 at 15:30 hrs (UK Time), 10:30
hrs (NY Time) and 07:30 hrs (CA Time) and thereafter for 1 year at
www.trintech.com/investor. An instant telephone replay will also be available
for 10 days by dialing+44 1452 55 00 00and entering the following access number
(99452612 #).
About Trintech Group
Trintech Group Plc (NASDAQ: TTPA) is a leading global provider of integrated
financial governance, transaction risk management, and compliance solutions. The
Company enables companies to achieve excellence in financial governance and
performance management through a comprehensive platform of account
reconciliation, accounting compliance, and financial reporting applications
across the financial lifecycle.
Over 600 leading global organizations are realizing the benefits of Trintech
solutions every day to gain greater control, visibility, and efficiency across
financial processes; improve financial performance through stronger management
of revenue and cost cycles; ensure the accuracy and integrity of financial data,
thereby reducing the risk of material weaknesses and restatements and to drive
immediate efficiencies and cost reductions in financial operations through
automation and scalability. Trintech's customers include retail chains,
commercial companies, financial institutions and healthcare providers in the
United States, the UK and the Republic of Ireland, continental Europe and
Australia. Customers who use our software include Ericsson, HSBC, Regis
Corporation, Providence Health & Services and Cleveland Clinic Foundation.
For more information on how Trintech can help you increase confidence in
business performance and reduce financial risk, please contact us online at
www.trintech.com or at our principal business office in Addison, Texas, or
through an international office in Ireland, the United Kingdom, or the
Netherlands.
Trintech * 15851 Dallas Parkway, Suite 900 * Addison, TX 75001 * Tel 1 972 701
9802
Trintech UK Ltd. * Warnford Court, 29 Throgmorton St. * London EC2N2AT, UK * Tel
+44 (0) 20 7628 5235
Trintech Technologies * Block C, Central Park * Leopardstown, Dublin 18, Ireland
* Tel +353 1 293 9840
Trintech * Cypresbaan 9 * 2908 LT Capelle a/d Ijssel, The Netherlands * Tel +31
(0) 10 8507 474
Forward Looking Statements
This news release contains "forward looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Any "forward looking statements" in
this press release are subject to certain risks and uncertainties that could
cause actual results to differ materially from those stated. "Forward looking
statements" in this press release include statements, among others, relating to
Trintech's business outlook and Trintech's belief that it is well positioned to
execute and capitalize on future market opportunities and grow revenue, adjusted
EBITDA and earnings in 2010 and that it is well positioned to benefit from any
economic upswing. Factors that could cause or contribute to such differences
include Trintech's ability to accurately predict future sales, its ability to
accurately predict and meet customer needs and to successfully position itself
in the market, Trintech's ability to ensure the performance of its products and
services, and its ability to improve the performance of its organization and
ensure the long term health of its business. Actual performance may also be
affected by other factors more fully discussed in Trintech's Form 20-F for the
fiscal year ended January 31, 2009 filed with the US Securities and Exchange
Commission (www.sec.gov) and subsequent filings with the US Securities and
Exchange Commission. Lastly, Trintech assumes no obligation to update these
forward looking statements.
Contact
Paul Byrne, President
Joseph Seery, VP Finance, Group
Trintech Group plc
+353 1 293 9840
paul.byrne@trintech.com
joseph.seery@trintech.com
TRINTECH GROUP PLC
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(U.S. dollars in thousands)
October 31, January 31,
2009 2009
ASSETS
Current assets
Cash and cash equivalents $18,715 $17,363
Restricted cash 170 1,143
Accounts receivable, net of allowance for
doubtful accounts of $278 and $267 at
October 31, 2009 and January 31, 2009,
respectively 4,815 6,021
Prepaid expenses and other current assets 1,355 1,140
Deferred costs 275 296
Net current deferred tax asset 436 252
Total current assets 25,766 26,215
Non-current assets
Restricted cash - 170
Property and equipment, net 1,194 1,430
Deferred costs 1,173 261
Intangible assets, net 3,530 5,309
Goodwill 24,003 24,089
Total non-current assets 29,900 31,259
Total assets $55,666 $57,474
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable 695 704
Accrued payroll and related expenses 2,073 1,878
Deferred consideration - 2,970
Income taxes payable 99 161
Other accrued liabilities 1,527 1,730
Deferred revenue 10,460 10,122
Total current liabilities 14,854 17,565
Non-current liabilities
Capital leases due after more than one year - 42
Income taxes payable 95 110
Net non-current deferred tax liability 436 252
Deferred rent less current portion 437 537
Total non-current liabilities 968 941
Series B preference shares, $0.0027 par value
10,000,000 authorized at October 31, 2009
and January 31, 2009, respectively
None issued and outstanding - -
Shareholders' equity:
Ordinary Shares, $0.0027 par value:
100,000,000 shares authorized;
33,454,384 shares issued and 33,072,413
and 31,843,333 shares outstanding at
October 31, 2009 and
January 31, 2009, respectively. 90 90
Additional paid-in capital 253,232 253,076
Treasury shares (at cost, 381,971 and
595,552 at October 31, 2009 and
January 31, 2009, respectively) (564) (879)
Accumulated deficit (208,663) (209,367)
Accumulated other comprehensive loss (4,251) (3,952)
Total shareholders' equity 39,844 38,968
Total liabilities and
shareholders' equity $55,666 $57,474
TRINTECH GROUP PLC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(U.S. dollars in thousands, except share and per share data)
Three months Nine months
ended October 31, ended October 31,
2009 2008 2009 2008
Revenue
License $5,361 $4,777 $15,472 $15,048
Service 4,640 5,337 13,623 15,192
Total revenue 10,001 10,114 29,095 30,240
Cost of revenue
License 1,028 619 2,144 1,705
Amortization of purchased
technology 181 226 543 668
Service 2,126 2,788 6,651 7,609
Total cost of
revenue 3,335 3,633 9,338 9,982
Gross margin 6,666 6,481 19,757 20,258
Operating expenses:
Research and development 1,265 1,580 4,135 4,630
Sales and marketing 2,181 2,831 7,119 9,368
General and
administrative 2,305 2,286 6,550 7,329
Restructuring charge - 100 253 154
Amortization of purchased
intangible assets 412 415 1,236 1,225
Total operating
expenses 6,163 7,212 19,293 22,706
Income (loss) from operations 503 (731) 464 (2,448)
Interest income, net 5 73 42 265
Exchange gain, net 64 151 291 252
Income (loss) before provision
for income taxes 572 (507) 797 (1,931)
Provision for income taxes (60) 142 (93) 113
Net income (loss) from
continuing operations $512 $(365) $704 $(1,818)
Gain on sale of discontinued
operations, net - 920 - 920
Net income (loss) $512 $555 $704 $(898)
Weighted-average shares used in
computing basic and diluted net
income (loss) per
Ordinary Share
Basic 33,022,644 31,947,108 32,906,958 31,916,366
Diluted 33,129,436 33,017,121 32,960,164 31,916,366
Basic and diluted income
(loss) per Ordinary Share $0.02 $0.02 $0.02 $(0.03)
Basic and diluted income
(loss) per equivalent ADS $0.03 $0.03 $0.04 $(0.06)
TRINTECH GROUP PLC
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA NET INCOME
(U.S. dollars in thousands, except share per share data)
Three months Nine months
ended October 31, ended October 31,
2009 2008 2009 2008
Net Income (loss) $512 $555 $704 $(898)
Adjustments:
Depreciation 140 183 458 575
Amortization of purchased
intangible assets 593 642 1,779 1,893
Share-based compensation 126 205 366 744
Restructuring charge - 100 253 154
Interest income, net (5) (73) (42) (265)
Income taxes 60 (142) 93 (113)
Gain on sale of
discontinued operations - (920) - (920)
Adjusted Earnings Before
Interest, Taxation,
Depreciation, Restructuring,
Gain on Sale of discontinued
operations and Amortization
(EBITDA) net income $1,426 $550 $3,611 $1,170
Adjusted Basic and diluted
income per Ordinary Share $0.04 $0.02 $0.11 $0.04
Adjusted Basic and diluted
income per equivalent ADS $0.09 $0.03 $0.22 $0.07
Note: Management believes Adjusted EBITDA net income is an important
measure of Company performance without consideration of the non-operating
income and expense adjusted above as it presents a clearer view of
operational performance changes between the comparative periods.
TRINTECH GROUP PLC
RECONCILIATION OF OPERATING EXPENSES TO ADJUSTED EBITDA OPERATING EXPENSES
(U.S. dollars in thousands)
Three months Nine months
ended October 31, ended October 31,
2009 2008 2009 2008
Total operating expenses $6,163 $7,212 $19,293 $22,706
Adjustments:
Restructuring charge - (100) (253) (154)
Depreciation (130) (167) (429) (514)
Amortization of
purchased intangible
assets (412) (415) (1,236) (1,225)
Share-based
compensation (113) (188) (334) (698)
Adjusted EBITDA operating
expenses $5,508 $6,342 $17,041 $20,115
Note: Management believes Adjusted EBITDA operating expenses is an
important measure of Company performance without consideration of the
non-operating expense adjusted above as it presents a clearer view of
operational performance changes between the comparative periods.
TRINTECH GROUP PLC
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
Nine months
ended October 31,
2009 2008
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $704 $(898)
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Depreciation 458 575
Amortization 1,779 1,893
Gain on sale of discontinued operations,
net - (920)
Share-based compensation 366 744
Effect of changes in foreign currency
exchange rates (226) (120)
Changes in operating assets and
liabilities:
Accounts receivable 2,384 2,063
Prepaid expenses and other current assets (952) (552)
Accounts payable (32) 1,018
Accrued payroll and related expenses (230) (616)
Deferred revenues (866) 266
Other accrued liabilities (132) (244)
Net cash provided by operating activities 3,253 3,209
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment (215) (244)
Proceeds relating to sale of discontinued
operations, net - 920
Decrease (increase) in restricted cash
deposits 970 (970)
Payments relating to acquisitions (2,883) (8,749)
Net cash used in investing activities (2,128) (9,043)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on capital leases (120) (109)
Issuance of ordinary shares 104 124
Repurchase of ordinary shares - (33)
Decrease in restricted cash deposits 173 -
Net cash provided by (used in) financing
activities 157 (18)
Net increase (decrease) in cash and cash
equivalents 1,282 (5,852)
Effect of exchange rate changes on cash and
cash equivalents 70 (1,074)
Cash and cash equivalents at beginning of
period 17,363 23,766
Cash and cash equivalents at end of
period $18,715 $16,840
Supplemental disclosure of cash flow
information
Interest paid $12 $25
Taxes paid $130 $167
Supplemental disclosure of non-cash flow
information
Acquisition of property and equipment
under capital leases $- $(30)
Shares issued in connection with
acquisition $- $1,239
SOURCE Trintech Group Plc
