Trintech Reports Second Quarter Fiscal Year 2009 Financial Results

Revenues of $10.5 million representing growth of 18% and Adjusted EBITDA Net Income of $215,000.

Dublin, Ireland/Dallas, Texas – August 20, 2008 – Trintech Group Plc (NASDAQ: TTPA), a leading global provider of integrated financial governance, transaction risk management, and compliance solutions today announced revenues of $10.5 million for the second quarter ended July 31, 2008, an Adjusted EBITDA net income of $215,000 and a net loss for the quarter of $965,000.

Highlights:

• Revenue amounted to $10.5 million compared to $8.9 million in Q2 last year, representing 18% growth. The increase was primarily due to an increase in EMEA revenues and new revenues generated from the Movaris business.
• Gross margin amounted to $7.1 million in Q2, representing 68% of revenue, compared to $6.0 million and 68% in Q2 last year.
• Trintech increased expenditure in research and development by 24% from $1.3 million in Q2 last year to $1.6 million in the same quarter in the 2009 fiscal year. The increase was primarily due to the inclusion of costs relating to the recently acquired Movaris business.
• Trintech increased expenditure in sales and marketing by 17% from $3.0 million in Q2 in the 2008 fiscal year to $3.5 million in the same quarter in the 2009 fiscal year. The increase was primarily due to the inclusion of costs relating to the recently acquired Movaris business.
• General and administrative expenses decreased by 4% in Q2 of the 2009 fiscal year compared to Q2 of the 2008 fiscal year to $2.6 million compared to $2.7 million in the prior fiscal year. The decrease was primarily due to a reduction in salary, legal and professional and occupancy costs which more than offset the increase in the quarter due to the inclusion of costs relating to the recently acquired Movaris business and the impact of the weakening US Dollar against the euro.
• Trintech generated an Adjusted EBITDA net income of $215,000 for Q2 of the 2009 fiscal year compared to an Adjusted EBITDA net loss of $210,000 for the corresponding period in the prior year.
• Combined basic and diluted net loss per equivalent ADS for the quarter ended July 31, 2008 was $0.06, compared with a basic and diluted net loss per equivalent ADS of $0.07 for the quarter ended July 31, 2007.

Cyril McGuire, Chairman & Chief Executive Officer said, “Trintech’s performance in Q2 was solid with revenue growth of 18% and adjusted EBITDA net income of $215,000 despite the challenges of the economic environment. However, the continued uncertainty in the market has negatively impacted our revenue and earnings results and business outlook for the rest of the year. Our management focus will continue to be on driving revenue growth and EBITDA profitability while extracting cost synergies from our recent acquisition of Movaris and maintaining a strong vigilance on our operating cost base given our outlook for the business. Following shareholder approval of our share buy-back at our recent AGM, we intend to initiate the purchase of our stock as our board strongly feels that the current Trintech share price does not accurately reflect the true enterprise value of the business.”

Paul Byrne, President, added, “In spite of the difficult economic environment, we believe our strategy of focusing on a broader product set, expanding our presence in the international market, and ensuring an efficient operating cost base will enable Trintech to deliver continued year over year growth in revenue and EBITDA profitability.”

Recent Highlights include:

Trintech announced that Somerston Hotels Ltd selected ReconNET to improve reconciliation and exception management processes while increasing operational efficiencies. Somerston Hotels owns and operates 32 hotels throughout the United Kingdom under two international brands, Express by Holiday Inn and Ramada Encore. With 31 Express by Holiday Inn hotels, Somerston Hotels is the largest franchisee of the brand in the United Kingdom.

Trintech announced that BAE Systems Shared Services has selected AssureNET GL to increase the timeliness and accuracy of their balance sheet account reconciliations. AssureNET GL is an automated reconciliation software system that assists in performing this critical business function, while facilitating internal controls and compliance. BAE Systems, with operations across five continents and customers and partners in more than 100 countries, develops, delivers, and supports advanced defence and aerospace systems in the air, on land, and at sea.

Trintech announced the newest release of its best-of-breed financial governance application suite, Unity 10.1, for enterprise risk management, accounting compliance, account reconciliation, financial close, and financial reporting. Unity 10.1 delivers enhanced management oversight capabilities of the reconciliation processes as they pertain to period-end financial close and reporting processes.

Trintech announced the latest release of its innovative Lifecycle Management (LCM) Payments solution for financial institutions. LCM Payments is a .NET browser-based account reconciliation and positive pay solution that enables financial institutions to provide their clients with a 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 treasury management services solutions with advanced fraud prevention technology to provide clients with complete visibility into the status of their payments.

Concuity, the healthcare division of Trintech, announced the availability of PriceAdvisor^TM, a web-based solution that will enable hospitals to accurately produce patient estimates by utilizing payer contracts, actual claim data, and patient benefit information.

Concuity also announced its partnership with Financial Healthcare Systems (FHS Corp), a provider of a web-based solution for credible procedural price estimates that provides patients with specific out-of-pocket costs, allowing them to better plan for impending medical expenses, while giving hospitals the ability to more accurately project revenue. By partnering with FHS Corp, Concuity further enhances its value proposition for hospitals seeking to increase customer satisfaction, streamline operations, and improve revenue calculation.

Trintech announced that it has been named a “Cool Vendor” in the Gartner report titled “Cool Vendors in Compliance and Risk Management, 2008″, published on April 24, 2008. Trintech was included in the report by Gartner analyst John E. Van Decker, et al. The report asserts “firms that are focusing their Governance, Risk and Compliance, or GRC efforts on the office of finance and want to bring in more innovative approaches to financial governance should consider best-of-breed applications and ERP offerings in this emerging market.”

Trintech held its 9th Annual General Meeting (AGM) as a public company in Dublin, Ireland. At the AGM, Cyril McGuire, Chairman and CEO, welcomed the approval by shareholders of all the ordinary and special resolutions including the approval of a share buy-back agreement with First Analysis Securities Corporation. The timing and amount of any repurchase by Trintech under the share buy-back program will be dependent upon market conditions, securities law limitations and other corporate considerations.

Trintech announced the successful conclusion of its twelfth annual US-based Customer Conference held May 19-22 at the Royal Sonesta Hotel in New Orleans, Louisiana. The Conference featured KPMG Advisory Services Principal, Richard Beacham; KPMG Advisory Services Director, Mike Scanlon; Prodiance President and CEO, Soheil Saadat; and more than 200 accounting and treasury professionals from world-class organizations, including eBay, ANZ Bank, Nike, Target, Monster Worldwide, and Yahoo; and sponsors PNC, Solutran, Harland Clarke, and Garda. This year’s conference theme focused on helping clients make financial governance a strategic asset in their business.

Results Overview:

Revenue for the second quarter was $10.5 million compared with $8.9 million for the corresponding quarter last year, an increase of 18%. The increase was primarily due to an increase in EMEA revenues and new revenues generated from the Movaris business.

Software license revenue for the quarter ended July 31, 2008 was $5.4 million compared with $4.5 million for the corresponding quarter in the prior year, an increase of 19%. The increase was primarily due to an increase in EMEA revenues and new revenues generated from the Movaris business.

Service revenue for the second quarter increased 17% to $5.1 million from $4.4 million for the corresponding quarter in the prior year. The increase was primarily due to an increase in EMEA revenues and new revenues generated from the Movaris business.

Total gross margin for the second quarter was $7.1 million, an increase of 17% from $6.0 million in the corresponding quarter in the prior year.

Total operating expenses for the second quarter were $8.0 million, an increase of 11% from $7.2 million in the corresponding quarter in the prior year. Adjusted EBITDA operating expenses for the quarter ended July 31, 2008 were $7.1 million, an increase of 10% on the Adjusted EBITDA operating expenses of $6.5 million for the corresponding period in the prior year.

Consolidated Adjusted EBITDA net income was $215,000 for the second quarter compared to an Adjusted EBITDA net loss of $210,000 for the corresponding quarter in the prior year.

Trintech’s balance sheet remains strong with net cash and cash equivalent balances of $15.9 million as of July 31, 2008. Net cash utilized for the three months ended July 31, 2008 was $545,000, which included cash utilized in operations of $120,000 and payments related to acquisitions of $398,000. Included in payments related to acquisitions is a $352,000 purchase consideration payment to the ex-owners of the Assurity business that Trintech acquired in February 2006.

Trintech will host a conference call to discuss its financial results and business outlook beginning at 15:30hrs (UK Time) today, Wednesday, August 20, 2008. Please see advisory for information on the call.

A web simulcast of Trintech’s conference call reviewing our performance for Q2 fiscal year 2009 and our business outlook for Q3 and full fiscal year 2009 will be broadcast live today, Wednesday, August 20, 2008 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 (5 9 6 3 2 6 9 2 #).

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

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 570 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.

Trintech’s technology enables our customers to ensure their internal financial processes are optimized, improve performance through stronger management of revenue and cost cycles, ensure the accuracy and integrity of financial data, improve the quality and efficiency of the financial close process, as well as reduce the risk of material weaknesses and restatements.

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 for fiscal 2009, Trintech management’s belief that the company’s broader product portfolio will drive revenue and EBITDA growth, the expected benefits from the acquisition of Movaris Inc.,the expected benefits that BAE Systems Shared Services will receive from its installation of AssureNET GL, the expected benefits that Somerston Hotels Ltd will receive from its installation of ReconNET, and Trintech’s intention to buy back its shares. 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.

Published Wednesday, August 20th, 2008 at 1:00 am and filed under Earnings, Corporate, Press Releases.