Revenues of $9.4 million for Q4 and $39.7 million for fiscal year 2009
representing growth of 5% and 20% compared to Q4 of the prior year and fiscal
year 2008 respectively with adjusted EBITDA net income of $460,000 for Q4 and
$1.6 million for fiscal year 2009.
DUBLIN and DALLAS, March 3 /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 $9.4 million for the fourth quarter ended January 31, 2009, an adjusted
EBITDA net income from continuing operations of $460,000 and a net loss for
the quarter of $334,000. Trintech is required to present its financial results
on a continuing operations and discontinued operations basis due to a one-time
gain of $920,000 relating to the final settlement of an escrow amount held
back against any claims arising from the sale of Trintech's payments business
to VeriFone Holdings, Inc. in September 2006. The remainder of this press
release relates to continuing operations, unless otherwise mentioned.
Highlights:
-- Revenue amounted to $9.4 million for Q4 of the 2009 fiscal year
compared
to $8.9 million in Q4 of the prior year, representing 5% growth.
-- Revenue grew 20% for the 2009 fiscal year to $39.7 million compared to
$32.9 million in the prior year.
-- Trintech generated an adjusted EBITDA net income of $460,000 for Q4 of
the 2009 fiscal year compared to an adjusted EBITDA net income of
$595,000 for the corresponding period in the prior year. Adjusted
basic
and diluted net income per ADS was $0.03 for Q4 of the 2009 fiscal
year
compared to $0.04 for the same period in the prior year.
-- Trintech generated an adjusted EBITDA net income of $1.6 million for
the
2009 fiscal year compared to an adjusted EBITDA net loss of $327,000
in
the prior year. Adjusted basic and diluted net income (loss) per ADS
was
$0.10 for the 2009 fiscal year compared to an adjusted net loss per
ADS
of $0.02 for the prior year.
-- Trintech generated $655,000 cash from operating activities for Q4 of
the
2009 fiscal year and increased its cash balances to $18.7 million
(including restricted cash of $1.3 million) at the end of the year.
-- Gross margin amounted to $6.1 million in Q4 of the 2009 fiscal year,
representing 65% of revenue, compared to $6.4 million and 71% in Q4 of
the prior year.
-- Gross margin amounted to $26.4 million in the 2009 fiscal year
representing 66% of revenue, compared to $22.2 million and 67% in the
prior year.
-- Trintech increased expenditure in research and development by 19% from
$1.2 million in Q4 of the 2008 fiscal year to $1.4 million in the same
quarter in the 2009 fiscal year and by 24% in the 2009 fiscal year to
$6.1 million compared to $4.9 million in the prior fiscal year.
-- Trintech reduced expenditure in sales and marketing by 7% from $2.7
million in Q4 in the 2008 fiscal year to $2.5 million in the same
quarter in the 2009 fiscal year. Sales and marketing expenditure
increased overall by 11% in the 2009 fiscal year to $11.9 million from
$10.7 million in the prior fiscal year.
-- General and administrative expenses decreased by 10% to $2.3 million
in
Q4 of the 2009 fiscal year compared to $2.6 million in Q4 of the 2008
fiscal year and by 2% in the 2009 fiscal year to $9.7 million from
$9.8
million in the prior fiscal year.
-- Net loss decreased by 53% from $706,000 in Q4 of the 2008 fiscal year
to
$334,000 in Q4 of the 2009 fiscal year and by 71% to $1.2 million in
the
2009 fiscal year compared to $4.3 million in the prior year. Included
in
the net loss for the 2009 fiscal year is a one-time gain of $920,000
relating to the final settlement of an escrow amount held back against
any claims arising from the sale of Trintech's payments business to
VeriFone Holdings, Inc. in September 2006. Combined basic and diluted
net loss per equivalent ADS for the quarter ended January 31, 2009 was
$0.02, compared with a basic and diluted net loss per equivalent ADS
of
$0.04 for the quarter ended January 31, 2008.
-- Combined basic and diluted net loss per equivalent ADS for the year
ended January 31, 2009 was $0.08, compared with a basic and diluted
net
loss per equivalent ADS of $0.27 for the year ended January 31, 2008.
Cyril McGuire, Chairman & Chief Executive Officer, said, "Trintech's Q4
results reflect a solid quarter and year end performance with revenue growth
and adjusted EBITDA net income of $460,000 for Q4 and $1.6 million for the
2009 fiscal year. Despite the turbulent global economic environment, our
business model provides good visibility with a high level of recurring
revenue, amounting to over 60% of annual revenues in the 2009 fiscal year.
Trintech continues to be cash generative with net cash inflows of $523,000
during the quarter bringing our group cash reserves to $18.7 million
(including restricted cash of $1.3 million) with no borrowings at 2009 fiscal
year end. Our strategy will be to focus and invest in our organic Governance,
Risk and Compliance (GRC) and healthcare business opportunities with
management fully committed to driving growth in EBITDA profitability while
maintaining strict cost control given the uncertain business outlook."
Paul Byrne, President, added, "In achieving our fifth consecutive quarter of
adjusted EBITDA profitability, we continue to deliver on our strategy of
adjusted EBITDA profitability growth and cash generation. Given the difficult
economic environment, there is a growing need for organizations to improve
operational efficiencies, reduce costs and strengthen governance platforms.
Addressing these needs for our customers will enable us to continue to execute
a robust financial model strategy in this changing market."
Recent Highlights include:
In November 2008, Trintech announced the availability of AssureNET GL 4.1, the
latest release of their application for general ledger reconciliation, review,
and certification. AssureNET GL 4.1 delivers new levels of automation in the
core application and integration with Trintech's Unity Financial Close
application through Unity's performance management dashboards. This
integration ensures that all financial governance tasks and controls,
including the status of reconciliations within AssureNET GL, are visible to
the Unity user via the Close Status consoles of the Financial Close management
dashboard.
Following the UK Chancellor's mandatory 2.5 per cent reduction of VAT in the
UK, Trintech announced in November 2008 that its XLNET Enterprise Spreadsheet
Management Solution offers a comprehensive solution for businesses wanting to
rapidly locate and adjust spreadsheets to be compliant with this VAT rate
reduction. By proactively inspecting spreadsheets and detecting potential VAT
errors, companies can avoid fines and penalties following tax recovery audits
performed by Her Majesty's Revenue and Customs.
Trintech announced that the Bay Area Users Group of Trintech customers' met in
January 2009 at KPMG's offices in Mountain View, California as part of
Trintech's on-going efforts to enable customers to share common experiences,
discuss the latest market trends and innovations in financial governance,
risk, and compliance, and provide insights towards Trintech's solution
roadmap. KPMG's participation in the User Group forums enables Trintech
customers to take advantage of KPMG's experience and capabilities in financial
governance including knowledge gained from various joint KPMG and Trintech
customers and relationships. Trintech has a large diverse customer base in
California comprised of clients in various industries such as high technology,
healthcare, energy, financial services and retail.
Results Overview:
Revenue for the year ended January 31, 2009 was $39.7 million compared with
$32.9 million for the year ended January 31, 2008, an increase of 20%. Revenue
for the fourth quarter ended January 31, 2009 was $9.4 million compared with
$8.9 million for the corresponding quarter in the prior year, an increase of
5%.
Software license revenue for the year ended January 31, 2009 was $19.6 million
compared with $16.6 million for the year ended January 31, 2008, an increase
of 18%. The increase was primarily due to revenues generated from the Movaris
business acquired in February 2008, strong FMS license sales and strong
maintenance renewals for all products. Software license revenue for the
quarter ended January 31, 2009 was $4.6 million compared with $4.9 million for
the corresponding quarter in the prior year, a decrease of 7%. The decrease
was primarily due to weaker FMS license sales in the quarter in North America
and EMEA due to 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. This fall in revenues was partially offset by strong
maintenance renewals from existing customers and customers from the Movaris
business.
Service revenue for the year ended January 31, 2009 was $20.1 million compared
with $16.3 million for the year ended January 31, 2008, an increase of 23%.
The increase was primarily due to revenues generated from the Movaris
business, an increase in revenues from ASP and hosting services in our FMS and
Healthcare businesses and strong FMS service revenues. Service revenue for
the quarter ended January 31, 2009 was $4.9 million compared with $4.0 million
for the corresponding quarter in the prior year, an increase of 20%. The
increase was primarily due to an increase in revenues from ASP and hosting
services in our FMS and Healthcare businesses, strong FMS service revenues and
revenues generated from the Movaris business.
Total gross margin for the year ended January 31, 2009 was $26.4 million, an
increase of 19% from $22.2 million for the year ended January 31, 2008. The
overall gross margin percentage fell by 1% in the 2009 fiscal year to 66% from
67% in the 2008 fiscal year. Total gross margin for the fourth quarter ended
January 31, 2009 was $6.1 million, a decrease of 4% from $6.4 million in the
corresponding quarter in the prior year. Gross margin percentage decreased to
65% in Q4 of the 2009 fiscal year compared to 71% in the same period of the
prior year. The decrease in margin and margin percentage was due to lower
license revenues and a higher percentage of lower margin service revenues in
Q4 of the 2009 fiscal year.
Total operating expenses for the year ended January 31, 2009 were $29.5
million, an increase of 9% from $27.0 million in the previous year. The
increase was due to costs related to the acquired Movaris business. Total
operating expenses for the fourth quarter ended January 31, 2009 were $6.8
million, a marginal decrease of 1% from $6.9 million in the corresponding
quarter in the prior year. The impact of costs related to the Movaris business
in the quarter was offset by reduced costs in other areas of the business due
to restructuring changes in prior quarters.
Adjusted EBITDA operating expenses for the year ended January 31, 2009 were
$26.1 million, an increase of 10% from $23.8 million in the previous year.
Adjusted EBITDA operating expenses for the quarter ended January 31, 2009 were
$6.0 million, flat compared to adjusted EBITDA operating expenses of $6.0
million for the corresponding period in the prior year.
Restructuring expenses were $252,000 and $98,000 for the year and quarter
ended January 31, 2009 respectively. These charges related primarily to
employee termination costs as a result of the company re-aligning its cost
base in the current difficult economic environment.
The provision for income taxes was a credit of $356,000 and $243,000 for the
year and quarter ended January 31, 2009. The tax credit was primarily due to a
deferred tax credit in the US resulting from the finalization of the purchase
accounting related to the acquisition of the Movaris business.
Adjusted EBITDA net income was $1.6 million for the year ended January 31,
2009 compared to an adjusted EBITDA net loss of $327,000 for the prior year.
Adjusted EBITDA net income was $460,000 for the fourth quarter ended January
31, 2009 compared to an adjusted EBITDA net income of $595,000 for the
corresponding quarter in the prior year.
Trintech's balance sheet remains strong with cash balances of $18.7 million
(including restricted cash of $1.3 million) as of January 31, 2009. Net cash
generated for the three months ended January 31, 2009 was $523,000, which
included cash generated from operations of $655,000, a foreign exchange cash
gain of $71,000, cash payments on the purchase of property and equipment of
$27,000, capital lease payments of $37,000, acquisition costs of $67,000,
increase in restricted deposits of $5,000 and $67,000 relating to purchases of
the company's stock through the company share buy-back scheme.
Trintech will host a conference call to discuss its financial results and
business outlook beginning at 15:30hrs (UK Time) today, Wednesday, March 4,
2009. Please see advisory for information on the call.
A web simulcast of Trintech's conference call reviewing our performance for Q4
of fiscal year 2009 and the full fiscal year 2009 and our business outlook for
Q1 fiscal year 2010 will be broadcast live, Wednesday, March 4, 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 00 and entering the following
access number (8 2 7 1 4 3 3 7 #).
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. Top customers in recent years include Accenture, Regis
Corporation, Sodexho Operations, Target Stores, Providence Health and
Cleveland Clinic.
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 growth strategy and Trintech management's belief that
addressing customer needs will enable Trintech to continue to execute a robust
financial model strategy. 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, 2008 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
(U.S. dollars in thousands, except share and per share data)
January 31, January 31,
ASSETS 2009 2008
Current assets
Cash and cash equivalents $17,363 $23,766
Restricted cash 1,143 -
Accounts receivable, net of allowance
for doubtful accounts of $267 and $24
at January 31, 2009 and January 31,
2008, respectively 6,021 6,507
Prepaid expenses and other current assets 1,140 1,195
Deferred costs 296 69
Net current deferred tax asset 252 3
Total current assets 26,215 31,540
Non-current assets
Restricted cash 170 338
Property and equipment, net 1,430 1,597
Deferred costs 261 109
Net non-current deferred tax asset - 136
Intangible assets, net 5,309 4,534
Goodwill 24,089 17,126
Total non-current assets 31,259 23,840
Total assets $57,474 $55,380
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable 704 515
Accrued payroll and related expenses 1,878 2,156
Deferred consideration 2,970 1,049
Income taxes payable 161 184
Other accrued liabilities 1,674 1,718
Deferred revenues 10,122 8,317
Liabilities held for sale and in
discontinued operations 56 141
Total current liabilities 17,565 14,080
Non-current liabilities
Capital leases due after more than one year 42 190
Deferred consideration - 2,000
Income taxes payable 110 119
Net non-current deferred tax liability 252 -
Deferred rent less current portion 537 427
Total non-current liabilities 941 2,736
Series B preference shares, $0.0027 par value
10,000,000 authorized at January 31,
2009 and January 31, 2008, respectively
None issued and outstanding - -
Shareholders' equity:
Ordinary Shares, $0.0027 par value:
100,000,000 shares authorized; 33,454,385
and 32,413,719 shares issued and 31,843,333
and 31,821,201 shares outstanding at
January 31, 2009 and January 31, 2008,
respectively. 90 87
Additional paid-in capital 253,076 251,029
Treasury shares (at cost, 595,552 and
592,518 at January 31, 2009 and
January 31, 2008, respectively) (879) (1,011)
Accumulated deficit (209,367) (208,135)
Accumulated other comprehensive loss (3,952) (3,406)
Total shareholders' equity 38,968 38,564
Total liabilities and
shareholders' equity $57,474 $55,380
TRINTECH GROUP PLC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except share and per share data)
Three months Twelve months
ended January 31, ended January 31,
2009 2008 2009 2008
Revenue
License $4,566 $4,891 $19,614 $16,640
Service 4,858 4,049 20,050 16,288
Total revenue 9,424 8,940 39,664 32,928
Cost of revenue
License 540 387 2,246 1,573
Amortization of purchased
technology 226 164 894 655
Service 2,564 2,020 10,173 8,482
Total cost of revenue 3,330 2,571 13,313 10,710
Gross margin 6,094 6,369 26,351 22,218
Operating expenses
Research and development 1,439 1,213 6,069 4,890
Sales and marketing 2,506 2,696 11,875 10,690
General and administrative 2,336 2,583 9,663 9,842
Restructuring charge 98 - 252 -
Amortization of purchased
intangible assets 426 385 1,651 1,541
Total operating expenses 6,805 6,877 29,510 26,963
Loss from operations (711) (508) (3,159) (4,745)
Interest income, net 55 192 320 1,039
Exchange gain, net 79 64 331 444
Loss before provision
for income taxes (577) (252) (2,508) (3,262)
Provision for income taxes 243 (454) 356 (1,011)
Net loss from continuing
operations (334) (706) (2,152) (4,273)
Profit on sale of discontinued
operations - - 920 -
Net income from discontinued
operations, net of tax - - 920 -
Net loss $(334) $(706) $(1,232) $(4,273)
Weighted-average shares used
in computing basic and
diluted net loss per
Ordinary Share
Basic and diluted 31,936,148 31,493,453 31,921,345 31,362,813
Basic and diluted loss per
Ordinary Share $(0.01) $(0.02) $(0.04) $(0.14)
Basic and diluted loss per
equivalent ADS $(0.02) $(0.04) $(0.08) $(0.27)
Basic and diluted loss from
continuing operations per
Ordinary Share $(0.01) $(0.02) $(0.07) $(0.14)
Basic and diluted loss from
continuing operations per
equivalent ADS $(0.02) $(0.04) $(0.13) $(0.27)
TRINTECH GROUP PLC
RECONCILIATION OF NET LOSS FROM CONTINUING OPERATIONS TO ADJUSTED EBITDA
NET INCOME (LOSS) FROM CONTINUING OPERATIONS
(U.S. dollars in thousands, except share and per share data)
Three months ended Twelve months ended
January 31, January 31,
2009 2008 2009 2008
Net loss from continuing
operations $(334) $(706) $(2,152) $(4,273)
Adjustments:
Depreciation 168 227 742 699
Amortization of purchased
intangible assets 652 549 2,545 2,196
Share-based compensation 174 263 919 1,079
Restructuring charge 98 - 252 -
Interest income, net (55) (192) (320) (1,039)
Income taxes (243) 454 (356) 1,011
Adjusted Earnings Before Interest,
Taxation, Depreciation,
Amortization, Restructuring,
Share-based compensation (EBITDA)
net income (loss) from
continuing operations $460 $595 $1,630 $(327)
Adjusted basic and diluted EBITDA
net income (loss) per Ordinary
Share from continuing operations $0.01 $0.02 $0.05 $(0.01)
Adjusted basic and diluted EBITDA
net income (loss) per ADS from
continuing operations $0.03 $0.04 $0.10 $(0.02)
Note: Management believes adjusted EBITDA net income (loss) from
continuing operations 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 ended Twelve months ended
January 31, January 31,
2009 2008 2009 2008
Total operating expenses $6,805 $6,877 $29,510 $26,963
Adjustments:
Restructuring charge (98) - (252) -
Depreciation (154) (211) (668) (641)
Amortization of purchased
intangible assets (426) (385) (1,651) (1,541)
Share-based compensation (160) (246) (857) (998)
Adjusted EBITDA operating
expenses $5,967 $6,035 $26,082 $23,783
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)
Twelve months ended
January 31,
2009 2008
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(1,232) $(4,273)
Adjustments to reconcile net loss to
net cash provided by (used in)
operating activities:
Depreciation 742 699
Amortization of purchased
intangible assets 2,545 2,196
Share-based compensation 919 1,079
Profit on sale of business, net (920) -
Effect of changes in foreign
currency exchange rates (273) (35)
Changes in operating assets and
liabilities:
Accounts receivable 804 473
Prepaid expenses and other current
assets (707) (325)
Value added tax receivable 24 (7)
Accounts payable 193 (896)
Accrued payroll and related expenses (555) (10)
Deferred revenues 2,556 335
Value added tax payable 14 (67)
Warranty reserve (25) (94)
Other accrued liabilities (221) (477)
Net cash provided by (used in)
operating activities 3,864 (1,402)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment (271) (581)
Proceeds on sale of property, plant and
equipment - 338
Proceeds (payments) relating to the sale
of business 920 (331)
Payments relating to acquisitions (8,816) (971)
Net cash used in investing activities (8,167) (1,545)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on capital leases (146) (93)
Issuance of ordinary shares 124 799
Repurchase of ordinary shares (100) -
Excess tax benefit from share-based
compensation plans - 465
Increase in restricted cash deposits (975) (338)
Net cash (used in) provided by financing
activities (1,097) 833
Net decrease in cash and cash equivalents (5,400) (2,114)
Effect of exchange rate changes on cash
and cash equivalents (1,003) 114
Cash and cash equivalents at beginning
of year 23,766 25,766
Cash and cash equivalents at end of year $17,363 $23,766
Supplemental disclosure of cash flow
information
Interest paid $31 $58
Taxes paid $222 $123
Supplemental disclosure of non-cash flow
information
Acquisition of property and equipment
under capital leases $(30) $(412)
Leasehold improvements funded by the
landlord $249 $-
Shares issued in connection with
acquisition $1,239 $-
SOURCE Trintech Group Plc
Paul Byrne, President, paul.byrne@trintech.com, or Joseph Seery, VP Finance,
Group, joseph.seery@trintech.com, both of Trintech Group Plc, +353 1 293 9840
