Quarter Revenue and Net Income Increase 79% and 40% Respectively
Six Month Revenue and Net Income Increase 68% and 97% Respectively
VANCOUVER, British Columbia, Nov. 12, 2010 (GLOBE NEWSWIRE) -- LML Payment Systems Inc. ("LML") (Nasdaq:LMLP), a leading payments technology provider of financial payment processing solutions for e-commerce and traditional businesses, reports results for its second quarter and six month period ended September 30, 2010.
Revenue for the second quarter ended September 30, 2010 was $5,819,000, an increase of 79% over the $3,252,000 in revenue for the second quarter ended September 30, 2009. GAAP net income for the quarter was $511,000, or $0.02 per share, compared to GAAP net income of $366,000, or $0.01 per share, for the second quarter ended September 30, 2009, an improvement of $145,000. Cash provided by operating activities was $800,000 compared to cash used in operating activities of $13,000 last year.
Non-GAAP net income was $1,032,000, or $0.04 per share, compared to $651,000, or $0.02 per share, for the second quarter last year. Non-GAAP net income excludes stock-based compensation, depreciation and amortization, and other non-cash items. A reconciliation of GAAP to non-GAAP financial measures is attached.
Revenue for the six month period ended September 30, 2010 was $10,950,000, an increase of 68% from revenue of $6,487,000 for the six month period ended September 30, 2009. GAAP net income for the same period was $899,000, or $0.03 per share, compared to GAAP net income of $455,000 or $0.02 per share, for the same period during fiscal 2010, an improvement of $444,000. Cash provided by operating activities was $2,192,000 for the six months ended September 30, 2010, compared to $100,000 for the same period last year.
Non-GAAP net income for the six month period ended September 30, 2010 was $1,907,000, or $0.07 per share, compared to $1,207,000, or $0.04 per share, for the same period last year.
"We are pleased to announce these results for both the second quarter and the first six months of our fiscal year. Despite uncertain economic times, all three of our business segments experienced increased revenues. Our Transaction Payment Processing segment, in particular, continued to grow impressively at 22%, easily beating the industry average. We also saw significant activity in our intellectual property segment both in terms of litigation settlements and licensing. Combined with a very focused and dedicated group of individuals, these activities led to significant increases in overall revenue, net income and cash flow from operations," said Patrick H. Gaines, Chief Executive Officer.
- Overall revenue increases 79%
- Transaction Payment Processing segment revenue increases 22% in Canadian dollars (29% in U.S. dollars)
- Customer base grows by 13%.
- Net income of $511,000 compared to $366,000 last year, an improvement of 40%
- Cash provided by operating activities improves by $813,000
6 Months Highlights
- Overall revenue increases 68%
- Transaction Payment Processing segment revenue increases 18% in Canadian dollars (29% in U.S. dollars)
- Subsidiary settles litigation with four defendants in Eastern District of Texas case during and subsequent to the period ended September 30th.
- Net income of $899,000 compared to $455,000 last year, an improvement of 97%
- Cash provided by operating activities of $2,192,000 compared to $100,000 last year, an improvement of over 2000%
Management will host a conference call on November 12, 2010 at 1:30pm Pacific Time (4:30pm Eastern Time) to discuss these results. To participate in the conference call, please dial in 5-10 minutes before the start of the call and follow the operator's instruction. If you are calling from the United States or Canada, please dial 800 926 7563. International callers please dial 212 231 2918.
If you are unable to join the call, an audio recording of the call will be available on our website at .
About LML Payment Systems Inc. ()
LML Payment Systems Inc., through its Canadian subsidiary Beanstream Internet Commerce Inc., and its U.S. subsidiaries Beanstream Internet Commerce Corp. and LML Payment Systems Corp., is a leading provider of financial payment processing solutions for e-commerce and traditional businesses. We provide credit card processing, online debit, electronic funds transfer, automated clearinghouse payment processing and authentication services, along with routing of selected transactions to third party processors and banks for authorization and settlement. Our intellectual property estate, owned by subsidiary LML Patent Corp., includes U.S. Patent No. RE40,220, No. 6,354,491, No. 6,283,366, No. 6,164,528, and No. 5,484,988 all of which relate to electronic check processing methods and systems.
GAAP versus Non-GAAP Financial Information
In addition to GAAP financial measures, the Corporation has provided supplemental non-GAAP financial measures of net income and earnings per share, which exclude certain non-cash and non-recurring items. For purposes of this news release, non-GAAP net income and earnings per share exclude stock-based compensation expense under CICA 3870 and the FASB authoritative guidance regarding share-based payment, depreciation and amortization expense, and certain non-cash items. A reconciliation of adjustments of non-GAAP to GAAP results for the second quarter and six month period and prior periods is included in the enclosed table. The Corporation believes that non-GAAP financial measures are useful in assessing operating performance as they provide an additional basis to evaluate our ability to incur and service debt and to fund capital expenditures. The Corporation believes the non-GAAP financial measures provide investors with similar measurement tools as its management uses to evaluate performance. Specifically, the Corporation's management utilizes and relies upon certain financial reports which consist of an operating performance indicator without certain non-cash items such as amortization and depreciation and stock-based compensation to evaluate the Corporation's operational performance as it pertains to generating cash, measuring budget expectations and achieving performance milestones. Non-GAAP financial measures are not meant to be considered in isolation and should not be considered as alternatives to financial information prepared in accordance with GAAP. Furthermore, our method of calculating the non-GAAP financial measures presented in this news release may differ from methods used by other companies, and as a result, the non-GAAP financial measures disclosed herein may not be comparable to other similarly titled measures used by other companies.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all passages containing verbs such as "aims," "anticipates," "estimates," "expects," "intends," "plans," "predicts," "projects" or "targets" or nouns corresponding to such verbs. Forward-looking statements also include any other passages that are primarily relevant to expected future events or that can only be evaluated by events that will occur in the future. Forward-looking statements are based on the opinions and estimates of the management at the time the statements are made and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Factors that could affect LML's actual results include, among others, the impact, if any, of stock-based compensation charges, the potential failure to establish and maintain strategic relationships, inability to integrate recent and future acquisitions, inability to develop new products or product enhancements on a timely basis, inability to protect our proprietary rights or to operate without infringing the patents and proprietary rights of others, and quarterly and seasonal fluctuations in operating results. More information about factors that potentially could affect LML's financial results is included in LML's quarterly reports on Form 10-Q and our most recent annual report on Form 10-K filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance upon these forward-looking statements that speak only as to the date of this release. Except as required by law, LML undertakes no obligation to update any forward-looking or other statements in this press release, whether as a result of new information, future events or otherwise.
CONTACT: LML Payment Systems Inc. Patrick H. Gaines, CEO (604) 689-4440 Investor Relations (800) 888-2260