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Trintech Reports Third Quarter Fiscal Year 2008 Financial Results



Dublin, Ireland/Dallas, Texas - November 21, 2007

Trintech Group Plc (NASDAQ: TTPA), a leading provider of integrated financial governance, transaction risk management, and compliance solutions for commercial, financial, and healthcare markets worldwide, today announced third quarter revenues of $7.7 million, an Adjusted EBITDA loss of $164,000 and a net loss for the quarter of $1.2 million.

Highlights:

Cyril McGuire, Chairman & Chief Executive Officer said, “Trintech’s performance remains on track to return the business to EBITDA profitability by the end of our current fiscal year, despite a challenging and competitive marketplace. We continue to launch new innovative products and expand our market reach to position Trintech for broader growth opportunities in 2008.”

Paul Byrne, President, added, “We continue to believe that our investment program in our product and sales and marketing programs will drive sufficient revenue growth to return Trintech to EBITDA profitability by the end of the current fiscal year. Whilst there are challenges in lengthening buying cycles as customers implement additional procurement processes, we continue to see growing pipelines and opportunities resulting from the investments we have made this fiscal year and are confident in our ability to grow revenues. We are also continuing to expand our distribution channels and geographic reach to underpin 2008 growth.”

Recent Highlights Include:

Trintech announced that Lafarge selected ReconNET to automate bank account reconciliation and to reduce exposure to risk. Lafarge Services (UK) Limited is the Shared Services operation that provides services to Lafarge operating entities in the UK, including Lafarge Aggregates, Lafarge Cement UK, and Lafarge Plasterboard. Lafarge is a leading supplier to the professional construction industry and the home improvement market.

Trintech announced that Delhaize Group selected AssureNET GL to shorten close cycles, reduce risk, and eliminate paper-based evidence binders. AssureNET GL will also help Delhaize Group better satisfy Sarbanes-Oxley compliance requirements. The Belgian food retailer, Delhaize Group, operates approximately 2,500 stores under several banners in the US and seven countries in Europe and Asia. At home, Delhaize Belgium runs 723 stores under banners such as Delhaize, AD Delhaize, Proxy Delhaize, and Tom & Co.

Trintech announced that Alimentation Couche-Tard Eastern Division selected ReconNET to automate funds reconciliation processes, monitor transactional risk, and optimize the resolution and reporting of exceptions. Alimentation Couche-Tard, French for “food for those who go to bed late,” is the largest convenience store retailer in Quebec. The selection of ReconNET by Couche-Tard Eastern Division is part of an expansion in the convenience store sector; Circle K Divisions in Arizona and Mac’s Convenience Stores in Ohio also currently utilize the ReconNET reconciliation system.

Trintech announced that it expanded its partnership with Prodiance Corporation, a leading provider of solutions for financial spreadsheet remediation and control, to deliver the XLNET spreadsheet risk and compliance management solution to the European market. The application complements Trintech’s AssureNET GL and ReconNET reconciliation software solutions to provide enterprises with a compliance framework for managing critical spreadsheets associated with account reconciliation, financial reporting, budgeting, forecasting, revenue recognition, and other key financial processes.

Trintech announced the availability of ReconNET 7.4 which is Trintech’s latest release in its integrated suite of Financial Governance software. The newest version of Trintech’s reconciliation and account balancing application will help clients further streamline reconciliation workflow; reduce resource allocation to the reconciliation and exception management process; improve auditing, documentation, and internal control; and speed exception management resolution.

Trintech announced significant enhancements in the new release of its accounting compliance software solution, AssureNET GL. AssureNET GL version 3.3 is designed to help give complex global organizations a fully SOX-compliant transaction matching, reconciliation, and accounting compliance platform. AssureNET GL 3.3 includes user interface enhancements that increase efficiency and flexibility, as well as new security, search, and reporting features. AssureNET GL is used to automate and control key accounting activities by some of the world’s most recognized companies, including Accenture, Regis Corporation, Rohm and Haas, Brady Corporation, JohnsonDiversey, AMC Theatres and East West Bank.

Trintech announced the release of its innovative Lifecycle Management (LCM) Payments solution for financial institutions. LCM Payments is a browser-based account reconciliation and positive pay solution that enables financial institutions to provide their clients with a more diverse range of real-time capabilities, based on customer-specific business requirements, while consolidating multiple existing systems into a single integrated platform. LCM Payments supplements other financial services solutions with advanced fraud prevention technology to provide clients with complete visibility into the status of their account reconciliation programs.

Trintech announced that Healthcare Financial Management Association (HFMA) had examined ClearContracts™ for Hospitals and Physician Groups, a solution that helps increase hospital revenue through the identification and correction of payer non-compliance issues in the contract revenue cycle, using the new HFMA Peer Review process. After undergoing rigorous review, ClearContracts now features the notable “Peer Reviewed by HFMA” mark. Concuity’s ClearContracts™ is a web-based revenue cycle management solution that allows healthcare organizations to manage the entire contract revenue cycle.

Trintech announced the availability of Concuity Healthcare Solution Suite for financial institutions. ClearContracts™ for hospitals and ClearContracts Pro (for Professional Groups) are web-based applications designed to fit into a healthcare organization’s revenue cycle management plan. ClearContracts enables all types of healthcare providers to analyze overall contract performance, verify expected reimbursement, and enhance the financial profitability of new and proposed payer contracts.

Trintech announced the availability of ClearContracts 7.2 which further improves Revenue Cycle Management with increased Contract Analysis and Negotiation Capabilities.

Results Overview:

Continuing Operations:

Revenue in the third quarter was $7.7 million compared with $6.7 million for the corresponding quarter last year, an increase of 15 percent.

Software license revenue for the quarter ended October 31, 2007 was $3.7 million compared with $4.0 million in the corresponding quarter last year, a decrease of 6 percent. The decrease in software license revenue was primarily due to customers extending the buy cycle as they implement additional procurement processes for our products in the US market. However, software license revenue has increased by 11 percent for the nine months ended October 31, 2007 compared with the corresponding period last year.

Service revenue for the quarter ended October 31, 2007 increased 46 percent to $4.0 million from $2.7 million in the corresponding quarter last year due primarily to revenues related to the healthcare business and to a lesser degree, increased revenues from FMS customers in our Europe, Middle East and Africa region.

Total gross margin for the third quarter was $5.0 million, which represented no change from the corresponding quarter last year.

Total operating expenses from continuing operations for the third quarter were $6.3 million, an increase of 15 percent from $5.5 million in the corresponding quarter last year. Adjusted EBITDA operating expenses from continuing operations for the quarter ended October 31, 2007 were $5.5 million, an increase of 11 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 $0.9 million operating expenses related to the healthcare business, higher professional costs related to tax and Sarbanes-Oxley compliance and the impact of the weakening US dollar on our euro-based costs compared to the corresponding period in the prior year.

Adjusted EBITDA net loss from continuing operations was $164,000 for the third quarter compared to an adjusted EBITDA net income of $350,000 from the corresponding quarter last year.

Trintech’s balance sheet remains strong with net cash and cash equivalent balances of $23.9 million as of October 31, 2007. Net cash generated for the three months ended October 31, 2007 was $1.1 million.

During the quarter ended October 31, 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 October 31, 2007.

Trintech will host a conference call to discuss its financial results and business outlook beginning at 15:30hrs (UK Time) today, Wednesday, November 21, 2007. Please see advisory for information on the call.

A web simulcast of Trintech’s conference call reviewing our performance for Q3 fiscal year 2008 and our business outlook for Q4 will be broadcast live today, Wednesday, November 21, 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 (2 4 5 1 8 0 2 2 #).

About Trintech Group

Trintech Group Plc (NASDAQ: TTPA) is a leading provider of integrated financial governance, transaction risk management, and compliance solutions for commercial, financial, and healthcare markets worldwide. Trintech’s recognized expertise in reconciliation underpins its suite of financial governance solutions, enabling businesses to address critical business objectives leading to more informed decision making and better overall business performance.

Over 500 leading global organizations, including - North Fork Bank, 7-Eleven, Kroger, Regal Entertainment, Accor, UPMC, Farmer’s Insurance Group, YUM! Brands Restaurants, Rohm and Haas, Verizon Wireless, and Ameren - realize the benefits of Trintech’s configurable and highly scalable solutions everyday to: improve performance through stronger management of the revenue cycle and disbursements; ensure the accuracy and integrity of financial data; identify and reduce transaction risk; improve the quality and timeliness of financial reporting; and strengthen internal controls to support compliance requirements.

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 to return to EBITDA profitability by the end of the current fiscal year, sales pipelines, opportunities resulting from investments made in the current fiscal year, Trintech’s ability to grow revenues in the future, the expected benefits from Lafarge Service’s installation of ReconNET GL, Delhaize Group’s installation of AssureNET GL, Alimentation Couche-Tard Eastern Division’s installation of ReconNET and the expanded partnership with Prodiance Corporation to the European market. 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, 2007 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, November 21st, 2007 and filed under Corporate - Earnings