updated 8/31/2010 11:17:31 PM ET 2010-09-01T03:17:31

  • Revenues of $9.1 million, Adjusted EBITDA Net Income of $1.5 million and Net Income of $1.0 million from Continuing Operations for second quarter.
  • Revenues of $17.6 million, Adjusted EBITDA Net Income of $2.5 million and Net Income of $1.5 million from Continuing Operations for half year.

DUBLIN, Ireland and DALLAS, Aug. 31, 2010 (GLOBE NEWSWIRE) -- Trintech Group Plc (Nasdaq:TTPA), a leading provider of integrated financial governance, risk management and compliance (GRC) solutions for commercial, financial and healthcare markets, today announced its Q2 and H1 fiscal year 2011 financial results. Following the sale of its healthcare business to The Advisory Board Company on April 1, 2010, Trintech is required to present its financial results on a continuing and discontinued basis. This requirement has resulted in the presentation of financial results showing second quarter revenues for the continuing business (the Financial Governance, Risk and Compliance or Financial GRC business) of $9.1 million and adjusted EBITDA net income for the continuing business of $1.5 million. The net income in the quarter for the continuing business amounted to $1.0 million and the net income for the continuing and discontinued businesses amounted to $1.1 million. For the six months ended July 31, 2010 ("H1 FY11"), the company recorded revenues of $17.6 million and an adjusted EBITDA net income for the continuing business of $2.5 million. The net income in H1 FY11 for the continuing business amounted to $1.5 million and the net income for the continuing and discontinued businesses amounted to $23.4 million, which included a gain on sale of the healthcare business of $21.8 million.

Highlights:

  • Revenues from continuing operations amounted to $9.1 million for Q2 of the 2011 fiscal year which was 9% higher compared to Q2 of the prior year.
  • Revenues from continuing operations amounted to $17.6 million for H1 FY11 which was 9% higher compared to $16.1 million in the prior year.
  • Trintech generated an adjusted EBITDA net income from continuing operations of $1.5 million for Q2 of the 2011 fiscal year which represented 10% growth compared to $1.4 million in the corresponding period in the prior year. Adjusted EBITDA basic and diluted net income from continuing operations per equivalent ADS was $0.09 for Q2 of the 2011 fiscal year compared to $0.08 for the same period in the prior year.
  • Trintech generated an adjusted EBITDA net income from continuing operations of $2.5 million for H1 FY11 which represented 17% growth compared to $2.2 million in the corresponding period in the prior year. Adjusted EBITDA basic and diluted net income from continuing operations per equivalent ADS was $0.15 for H1 FY11 compared to $0.13 for the same period in the prior year.
  • Trintech generated $28.9 million cash in H1 FY11 compared to cash generated of $312,000 for the same period in the prior year and increased its cash balances to $48.9 million as at July 31, 2010. The cash generated in H1 FY11 included net proceeds from the sale of the healthcare business of $26.6 million.
  • Gross margin from continuing operations amounted to $6.9 million in Q2 of the 2011 fiscal year, representing 75% of revenues, compared to $6.3 million and 75% in Q2 of the prior year.
  • Gross margin from continuing operations amounted to $13.1 million in H1 FY11, representing 74% of revenues, compared to $11.9 million and 74% for the same period in the prior year.
  • Trintech increased expenditure in research and development from continuing operations by 22% from $1.2 million in Q2 of the 2010 fiscal year to $1.4 million in the same quarter of the 2011 fiscal year. Research and development expenditure from continuing operations increased by 16% in H1 FY11 compared to the same period in the prior year.
  • Trintech marginally increased expenditure in sales and marketing from continuing operations by 1% to $2.4 million in Q2 of the 2011 fiscal year compared to the same quarter of the 2010 fiscal year. Sales and marketing expenditure from continuing operations increased by 7% in H1 FY11 compared to the same period in the prior year.
  • General and administrative expenses from continuing operations increased by 5% to $1.9 million for the quarter compared to Q2 of the 2010 fiscal year and by 3% to $3.9 million in H1 FY11 compared to $3.8 million in the prior fiscal year.
  • Net income from continuing operations increased to $1.0 million in Q2 of the 2011 fiscal year from $850,000 in Q2 of the 2010 fiscal year. After incorporating net income from discontinued operations of $50,000, the total net income for Q2 FY11 was $1.1 million compared with net income of $603,000 for the same period of the prior year. Net income from continuing operations increased to $1.5 million in H1 FY11 from $883,000 for the same period in the 2010 fiscal year. After incorporating net income from discontinued operations of $21.9 million, the total net income for H1 FY11 was $23.4 million compared with net income of $192,000 for the same period of the prior year.
  • Basic and diluted net income per equivalent ADS from continuing operations for Q2 FY11 was $0.06, compared with a basic and diluted net income per equivalent ADS of $0.05 for Q2 FY10. Basic and diluted net income per equivalent ADS from continuing and discontinued operations for Q2 FY11 was also $0.06, compared with a basic and diluted net loss per equivalent ADS of $0.04 for Q2 FY10.
  • Basic and diluted net income per equivalent ADS from continuing operations for H1 FY11 was $0.09 compared with a basic and diluted net income per equivalent ADS of $0.05 for H1 FY10. Basic and diluted net income per equivalent ADS from continuing and discontinued operations for H1 FY11 was $1.41 and $1.35 respectively, compared with a basic and diluted net income per equivalent ADS of $0.01 for H1 FY10.

Cyril McGuire, Chairman and Chief Executive Officer said, "Our performance in Q2 and H1 FY11 was strong with solid business growth in our core Financial GRC market. Revenue grew robustly by 9% in both the second quarter to $9.1 million and H1 FY11 to $17.6 million on the back of new client wins and improved confidence in technology spending. We have significantly strengthened our market position by investing to enhance our product and sales capabilities as well as expanding internationally. Adjusted EBITDA net income grew by a solid 10% in Q2 FY11 to $1.5 million and by 17% in H1 FY11 to $2.5 million as net income margins expand. Operating performance metrics continued to improve with strong cash generation during H1 FY11 with cash reserves amounting to $48.9 million at the end of Q2 FY11. We made substantial investments in product development and increased R&D by 22% in the quarter compared to the prior year to deliver new innovative products and services to our growing client base in the Financial GRC market. Our outlook remains positive as the macro environment and broader global economy continues its recovery."

Paul Byrne, President, added, "Trintech continues to deliver robust growth across all key financial metrics. This success will continue to be underpinned by the on-going need for corporate organizations to strengthen their governance platforms as they rebuild after the economic downturn. In addition, the ever-increasing scope of corporate and financial regulation underpins Trintech's strategic focus on helping organisations to plan for and deal with this burden."

Recent Highlights include:

Trintech announced that Ultra Petroleum Corp. (NYSE:UPL) had selected its AssureNET ASP software for financial process compliance. AssureNET ASP is a hosted component of Trintech's Unity platform, a suite of modular software that enables companies to meet their financial governance, risk management and compliance goals. Ultra Petroleum Corp. is an independent exploration and production company focused on developing its long-life natural gas reserves in the Green River Basin of Wyoming.

Trintech announced that Irving Oil Marketing Inc. had selected its ReconNET software for financial process compliance. ReconNET 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. With over 800 fueling locations in New England and Atlantic Canada, Irving Oil, a Fort Reliance company, is a leader in the Northeast in refining and fuel marketing.

Trintech announced that Sanoma Uitgevers B.V. had selected its AssureNET GL software for financial process compliance. With almost 80 consumer magazines, about 180 websites, 15 mobile sites and all accompanying extensions and events, Sanoma Uitgevers is the largest cross media publisher in the Netherlands.

Trintech announced that Schweitzer-Mauduit International, Inc. (NYSE:SWM) had selected its AssureNET ASP software for financial process compliance. Schweitzer-Mauduit International, Inc. is a diversified producer of premium specialty papers.

Trintech announced that a leading U.S financial services firm had reduced costs related to the financial close process by approximately $324,000 per year, utilizing Trintech's Unity Financial GRC Software Suite. A leading analyst firm, Gartner, has written a case study ("Leading Futures and Options Exchange Adopts a Financial-Close Solution", by John Van Decker, Gartner, April 2010) detailing the customer's compliance issues, its selection and implementation of a solution, and the value delivered by Trintech's solution. The case study can be found on Trintech's web site at: www.trintech.com/learn-more/white-paper-library/complimentary-gartner-case-study/

Trintech announced that it had become one of the first companies to file a fully XBRL-compliant Form 20-F with the U.S. Securities and Exchange Commission – including detailed level 1-4 XBRL tagging.

Trintech held its 11th Annual General Meeting (AGM) as a public company in Dublin, Ireland on July 22, 2010, at which all the ordinary and special resolutions were approved by shareholders.

Trintech celebrated the successful conclusion of its fourteenth annual US-based Customer Conference held May 12-14, 2010 at the Sandestin Golf & Beach Resort in Destin, Florida. The Conference, which attracted more than 230 attendees, recognized finance, accounting and treasury professionals from leading organizations, including,  Intel, Target, Hewlett Packard, FedEx Office, Sony Pictures Entertainment, Sprint, Yahoo!, Wal-Mart Stores, KPMG and HSBC.

Results Overview:

Revenues from continuing operations for H1 FY11 increased by 9% to $17.6 million compared to $16.1 million for the corresponding period in the prior year. Revenues from continuing operations for the second quarter also increased by 9% to $9.1 million compared to $8.4 million for the corresponding quarter in the prior year.

Software license revenues from continuing operations for H1 FY11 were $11.2 million compared to $10.1 million for the same period in the prior year, representing growth of 11%. The growth was primarily due to increased new license business which grew by 22% compared to the same period in the prior year. Recurring maintenance revenues also contributed growth of 6% compared to the same prior period. Software license revenues from continuing operations for Q2 FY11 were $5.8 million compared to $5.3 million for same period in the prior year, representing growth of 10%. The growth was primarily due to increased new license business which grew by 16% compared to the same period in the prior year. Recurring maintenance revenues also contributed growth of 7% compared to the same prior period.

Service revenues from continuing operations for H1 FY11 were $6.4 million compared to $6.0 million for the same period in the prior year, representing growth of 6%. Service revenues from continuing operations for Q2 FY11 were $3.3 million compared to $3.1 million for Q2 FY10, representing growth of 7%. The growth for the three and six months ended July 31, 2010 was primarily due to an increase in professional service revenues from our AssureNET and Unity products.

Total gross margin from continuing operations for Q2 FY11 and H1 FY11 was $6.9 million and $13.1 million respectively, an increase of 9% from $6.3 million for Q2 FY10 and an increase of 10% from $11.9 million for H1 FY11. The increase in gross margin was due to an increase in revenues. The overall gross margin percentage from continuing operations remained flat at 75% and 74% in Q2 of the 2011 fiscal year and in H1 FY11, respectively compared to the corresponding periods in the prior year.

Total operating expenses from continuing operations for H1 FY11 were $11.6 million, an increase of 3% from $11.2 million in the corresponding period in the prior year. Adjusted EBITDA operating expenses from continuing operations for H1 FY11 were $10.9 million, an increase of 8% from $10.1 million for the corresponding period in the prior year. Total operating expenses from continuing operations for Q2 FY11 were $5.9 million, an increase of 4% from $5.6 million in the corresponding quarter in the prior year. Adjusted EBITDA operating expenses from continuing operations for Q2 FY11 were $5.5 million, an increase of 7% from $5.2 million for the corresponding period in the prior year. The increases were largely due to an additional use of engineering contractors on product development and marketing costs.

The provision for income taxes from continuing operations was $156,000 for H1 FY11 compared to $33,000 for the corresponding period in the prior year arising primarily from state taxes in the US, UK corporation tax and tax on interest income in Ireland. The provision for income taxes from continuing operations was $59,000 for Q2 FY11 compared to a $3,000 credit for the corresponding period in the prior year.

Trintech's balance sheet is substantially stronger than at January 31, 2010 with cash balances of $48.9 million as of July 31, 2010. The cash flow statement has been prepared on a combined continuing and discontinued basis. Net cash generated for H1 FY11 was $28.9 million, which included net proceeds from the sale of the healthcare business of $26.6 million, cash generated from operations of $2.2 million, proceeds from the issuance of ordinary shares of $375,000, a decrease in restricted deposits of $170,000, payments on the purchase of property and equipment of $249,000, capital lease payments of $49,000 and the negative effect of exchange rate differences on cash and cash equivalents of $89,000. Net cash generated for Q2 FY11 was $1.3 million compared to $763,000 in the same quarter in the prior year.

Trintech will host a conference call to discuss its financial results and its business outlook at 15:30hrs (UK Time), Wednesday, September 1. Please see advisory for information on the call.

A web simulcast of Trintech's conference call reviewing our performance for Q2 fiscal year 2011 and our business outlook for Q3 fiscal year 2011 will be broadcast live, Wednesday, September 1, 2010 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 (9 5 5 6 7 8 0 0 #).

About Trintech Group

Trintech Group Plc (Nasdaq:TTPA) is a leading global provider of integrated financial governance, risk management and compliance (GRC) software solutions for commercial, financial, and healthcare markets. Trintech's recognized expertise in reconciliation process management, financial data aggregation, financial close and reporting, risk management, and compliance enables customers to gain greater visibility and control of their financial processes leading to better overall business performance.

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 our product and sales capabilities, the future growth of our client base, the state of the macro environment and the broader global economy, our business outlook and our position for revenue and earnings growth, the needs of corporate organizations to improve financial transparency and efficiency and the impact of the evolution of and growth in corporate and financial regulation and demand for greater visibility of risk and compliance by company boards on the demand for our financial GRC platform. Factors that could cause or contribute to such differences include Trintech's ability to accurately predict future sales and market trends, accurately predict and meet customer needs and to successfully position itself in the market, ensure the performance of its products and services, and 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, 2010 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.

 

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