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Trintech Reports First Quarter Fiscal Year 2008 Financial Results



Dublin, Ireland/Dallas, Texas - May 23, 2007

Trintech Group Plc (NASDAQ: TTPA), a leading global provider of financial software and services specializing in reconciliation workflow, revenue enhancement, transaction risk management, and compliance for commercial, financial, and healthcare markets, today announced first quarter revenues of $7.4 million, an Adjusted EBITDA loss of $548,000 and a net loss for the quarter of $1.4 million.

Highlights

Cyril McGuire, Chairman and Chief Executive Officer said, “Trintech’s Q1 results remained on track as we transition the business to a software and transaction services business model. Our growth in Q1 was fuelled by our continued investment in new innovative products and new growth markets as we expand the breadth of our product and services especially in the Financial Services and Healthcare markets. Our primary management goal is to deliver a profitable EBITDA growth performance in the second half of fiscal 2008.”

Paul Byrne, President, added, “We continue to deliver revenue growth and expand our customer base as a result of the significant investments being made in increasing our sales force and investing in marketing campaigns to generate demand for our products and services. We expect to continue investing in expanding our sales and marketing capability to drive future revenue growth. The integration of the recent healthcare acquisition is on plan, and we continue to seek further acquisition opportunities to accelerate growth.”

Recent Highlights include:

Trintech announced that Hess Corporation had selected AssureNET GL to automate and standardize general ledger reconciliation for its Exploration & Production Headquarters in Houston, Texas. AssureNET GL automates and controls key accounting activities, including account reconciliation processes; trending, variance, and balance flux analysis; manual journal entry review and approval; and closing process tasks and activities. Additionally, the accounting compliance system facilitates the creation of documents/reports necessary for audits, such as Sarbanes-Oxley.

Trintech announced that Snyder’s Drug Stores, Inc. had selected ReconNET On-Demand and the DataFlow Transaction Network to streamline reconciliation processes across its enterprise. The DataFlow Transaction Network will capture, format, balance, and load daily bank data into ReconNET. ReconNET, accessible via the Internet, will be used to automate the verification and reconciliation of the company’s bank deposits and credit cards. Snyder’s is a leading drugstore chain in the Midwest of the US, with 110 stores reaching across Minnesota, Michigan, Illinois, Iowa, and Montana.

Trintech announced that Forever 21, Inc., had selected ReconNET to improve financial transaction management across its enterprise, including the verification and reconciliation of its cash deposits and credit cards. ReconNET will interface directly with Forever 21’s point of sale and ledger systems, ensuring greater efficiency and consistency across the company. Founded in 1984, Forever 21 operates more than 400 stores in the US and Canada under the banners - Forever 21, Forever XXI, and For Love 21.

Trintech announced that it had partnered with Prodiance Corporation, a leading provider of solutions for financial spreadsheet remediation and control, to drive expansion of xlNET, a spreadsheet compliance tool. Spreadsheet compliance is a natural extension of Trintech’s accounting compliance suite, which provides best-in-class solutions for automating critical accounting processes, including transaction matching, exception management, account reconciliation, and closing cycle activities. By partnering with Prodiance, Trintech further enhances its value proposition for financial departments seeking to optimize compliance processes, streamline operations, and reduce risks.

Trintech announced the appointment of Thomas S. Visotsky to Vice President of Sales. Mr. Visotsky will be responsible for all new business development efforts with healthcare entities located in the eastern half of the U.S. Most recently, Mr. Visotsky was national sales director of Besler Consulting where he was responsible for leading sales initiatives for Besler Consulting’s Reimbursement, Revenue Cycle, Accreditation and Coding & Compliance product lines.

Results Overview

Continuing Operations:

Revenue in the first quarter was $7.4 million compared with $5.5 million for the corresponding quarter last year, an increase of 33 percent.

Software license revenue for the quarter ended April 30, 2007 was $3.5 million compared with $3.2 million in the corresponding quarter last year, an increase of 8 percent.

Service revenue for the quarter ended April 30, 2007 increased 69 percent to $3.9 million from $2.3 million in the corresponding quarter last year.

Total gross margin for the first quarter was $4.8 million, an increase of 17 percent from $4.1 million in the corresponding quarter last year.

Total operating expenses from continuing operations for the first quarter were $6.5 million, an increase of 33 percent from $4.9 million in the corresponding quarter last year. Adjusted EBITDA operating expenses from continuing operations for the quarter ended April 30, 2007 were $5.8 million, an increase of 31 percent on the Adjusted EBITDA operating expenses from continuing operations for the corresponding period last year. The increase in operating expenses and Adjusted EBITDA operating expenses was primarily due to the inclusion of costs related to the healthcare business.

Adjusted EBITDA net loss from continuing operations was $548,000 for the first quarter, an increase of $468,000 from the corresponding quarter last year.

Trintech’s balance sheet remains strong with net cash and cash equivalent balances of $24.7 million as of April 30, 2007. Net cash usage for the three months ended April 30, 2007 was $1.0 million, which included acquisition related payments of $875,000.

During the quarter ended April 30, 2007, Trintech did not purchase any shares via the share buy-back program. As a result, $2.9 million remains available for future repurchases under this program as at April 30, 2007.

Trintech will host a conference call to discuss its financial results and business outlook beginning at 15:30hrs (UK Time) today, Wednesday, May 23, 2007. Please see advisory for information on the call.

A web simulcast of Trintech’s conference call reviewing our performance for Q1 fiscal year 2008 and our business outlook for Q2 will be broadcast live today, Wednesday, May 23, 2007 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. An instant telephone replay will also be available for 10 days by dialing +44 1452 550 000 and entering the following access number (8 4 8 7 7 6 1 #).

About Trintech

About Trintech Group Trintech Group Plc (NASDAQ: TTPA) is a leading global provider of financial software and services specializing in reconciliation workflow, revenue enhancement, transaction risk management, and compliance for commercial, financial, and healthcare markets. For over 20 years, Trintech has been providing comprehensive, industry-leading solutions to financial departments seeking greater insight into critical transaction processes. Trintech delivers a configurable, highly scalable platform that incorporates a company’s unique business processes, enabling managers to obtain greater visibility and more efficiently manage business risk throughout the transaction lifecycle. Trintech’s transaction process management solutions include: ReconNET for high volume transaction reconciliation; AssureNET GL for general ledger reconciliation and certification; On-Demand solutions for ASP ReconNET and AssureNET services; Dataflow Transaction Network for data collection and delivery and ClearContracts, an ASP service which enables healthcare providers to optimize contract profitability by reconciling payments received from their patients’ insurers to amounts they should have received from claims under the terms of their respective contracts. Over 465 leading companies across a variety of industries rely on Trintech products and services. Clients include: Accenture, Providence Health System, Regis Corporation, 7-Eleven, Kroger, Regal Entertainment, Accor, UPMC, Farmer’s Insurance Group, YUM! Brands Restaurants, Rohm and Haas, Verizon Wireless, and Ameren.

Trintech’s principal business office is in Dallas, Texas, with international offices in Ireland, the United Kingdom and the Netherlands. Trintech can be reached at 15851 Dallas Parkway, Suite 900, Addison, TX 75001 (Tel 1.972.701.9802). Trintech’s corporate office can be contacted at Trintech Technologies, Block C, Central Park, Leopardstown, Dublin 18, Ireland (Tel 353.1.293.9840). For more information, please visit www.trintech.com.

Forward Looking Statement

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 management’s goals in the second half of fiscal 2008 and its plan to seek further acquisition opportunities, Trintech’s plans to continue investing in expanding its sales and marketing capabilities, the expected benefits from Snyder’s Drug Stores Inc.’s installation of ReconNet On-Demand and DataFlow Transaction Network, the expected benefits from Forever 21 Inc.’s installation of ReconNet and the expected benefits from a partnership with Prodiance Corporation. 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, 2006 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.

Please click here to read the press release in its entirety.

Published Wednesday, May 23rd, 2007 and filed under Corporate - Earnings