Payment software company Trintech has reported a pro-forma loss of $1.25 million for the third quarter ending October 31. The company's pro forma loss per ADS was 8 cent, down 50% from the same time last year.
Revenues for the quarter were $11.4 million, up 5% on the second quarter but 35% lower than the same time last year.
Trintech said that its revenues for the nine months to the end of October came to $32.4 million compared with $52.8 million for the corresponding nine months of 2001 - a fall of 39%.
The company said the decrease in revenues was as a result of the 'ongoing fragile state of the global economy'. 'This resulted in slower payment infrastructure investment decisions and longer sales cycles for Trintech's products,' the company said in a statement.
Trintech said it had recorded its seventh consecutive quarter of declining pro-forma operating expenses, which fell by 43% in Q3. Pro-forma operating expenses declined 9% sequentially this quarter to $7.5 million.
Third quarter software license revenue was $5.7 million, a decrease of 31% for the same time last year. For the nine months to the end of October, software license revenue was $16.7 million, a decrease of 31% over the same nine months in 2001.
Product revenue for the third quarter soared by 56% to $2.9 million from $1.8 million in Q2, but decreased by 57% from product revenues in Q3 last year. Product revenues for the nine months to October was down 66% over the same nine months last year to $6.5 million.
The company said this is because of the ongoing general weakness in its point of sale business line, due to a fall off in new IT investment at the retail level in the German market. Trintech said it had implemented a number of actions to return the product line to profitability and is confident of its potential.
During the quarter, Trintech secured deals with US convenience store giant 7-Eleven, UK DIY group Wilkinson and the US Hanger Orthopedic Group and launched its PayWare Fusion and Compact GPRS products.
Trintech chairman and CEO Cyril McGuire told RTE a management buy-out had not been discussed by the company's board, and that the firm continued to see value in its stock market listing.
McGuire had earlier said he was pleased to report solid third quarter results 'which underpin Trintech's strategy to return to profitability'.
'In general, we performed well in a very difficult and challenging market. All our key performance metrics improved sequentially including modest revenue growth, gross margin expansion, operating cost reduction and a narrowing of losses with key balance sheet metrics remaining on track,' he said.
'This solid progress will lay the foundations on which to grow revenue, continue to optimise our cost base and return the company to profitability in the near term,' McGuire concluded.
