Trintech Group plc, a leading provider of secure eCommerce payment infrastructure solutions, announced record fourth quarter and fiscal year revenues for the period ended January 31, 2001.
Revenues for the fourth quarter ended January 31, 2001 were $15.5 million compared with $9.0 million for the corresponding quarter ended January 31, 2000, an increase of 72%. Revenues for the fiscal year ended January 31, 2001 were $49.0 million compared with $30.2 million for the corresponding fiscal year ended January 31, 2000, an increase of 62%.
The growth in revenue reflects demand for Trintech’s secure eCommerce payment infrastructure solutions. This demand drove fourth quarter software license revenue to $6.2 million, an increase of 80% over fourth quarter license revenue last year of $3.5 million. License revenue for the fiscal year grew to $20.6 million, an increase of 125% over the previous fiscal year’s license revenue of $9.2 million. Services revenue for the fourth quarter grew 363% to $2.6 million from $552,000 in the fourth quarter last year while service revenue for the fiscal year grew 134% to $6.1 million from $2.6 million in the prior fiscal year. Product revenue in the fourth quarter grew 34% to $6.8 million compared with $5.0 million in the fourth quarter last year and grew 21% to $22.3 million for the fiscal year over the corresponding period in the prior year.
Gross margin, including the cost of amortization of acquired technology of $1.1 million, for the quarter was 39% ($6.1 million), down from 47% ($4.2 million) in the corresponding quarter last year. Meanwhile, gross margin, including the cost of amortization of acquired technology, for the fiscal year ended January 31, 2001 was 46% ($22.4 million), up from 43% ($13.0 million) in the corresponding fiscal year ended January 31, 2000.
On a proforma basis, excluding the cost of amortization of acquired technology of $1.1 million, proforma gross margin for the quarter was 47% ($7.3 million), compared with 47% ($4.2 million) in the corresponding quarter last year. Meanwhile, proforma gross margin, excluding the cost of amortization of acquired technology, for the fiscal year ended January 31, 2001 was 48% ($23.6 million), up from 43% ($13.0 million) in the corresponding fiscal year ended January 31, 2000.
“Our record fourth quarter and fiscal year revenues represent an important milestone for Trintech and is encouraging to have achieved such solid results,” says John McGuire, Chief Executive Officer. “We are committed as a company to supplying our customers with the most innovative and secure ePayment infrastructure solutions to help them increase their revenues and reduce their internal operating costs. Trintech has taken another leading step this quarter and fiscal year as we strive towards our path to profitability.”
In the fourth quarter ended January 31, 2001, Trintech continued to invest in building a global organization and development of innovative secure eCommerce payment infrastructure solutions. As a result, sales and marketing expenditure grew 82% to $5.0 million, and research & development spending grew by 121% to $6.5 million over the corresponding quarter last year.
Paul Byrne, Chief Financial Officer said “We continue to invest in research and development, and sales and marketing to strengthen the company’s leading position in the emerging mCommerce and eCommerce marketplaces whilst focussing on the path to profitability in this consolidating market.”
Basic and diluted net loss per equivalent American Depository Share (ADS) for the quarter ended January 31, 2001 was $(0.26) compared with the basic and diluted net loss per ADS of $(0.09) for the corresponding quarter ended January 31, 2000.
In the quarter, the Company recorded a stock compensation charge of $1.2 million, equivalent to $0.02 per ADS, in relation to stock options granted in 1999 at market value to the members of the Company’s Advisory Board and to MasterCard as part of a strategic alliance with the Company. The Company also recorded a charge of $5.6 million for amortization of goodwill and purchased intangible assets and a charge of $1.1 million in relation to the amortization of technology, relating to the acquisitions of Checkline plc, Sursoft, Exceptis Technologies and Globeset Inc. equivalent to $0.11 per ADS.
Excluding the impact of the amortization of goodwill, purchased intangible assets and technology and stock compensation related charges, proforma basic and diluted net loss per ADS was ($0.12) for the quarter ended January 31, 2001.
For the full year basic and diluted net loss per equivalent American Depository Share (ADS) was $(0.59) compared with the basic and diluted net loss per ADS of $(0.31) for the same period last year. Excluding the impact of the amortization of goodwill, purchased intangible assets and technology and stock compensation related charges, proforma basic and diluted net loss per ADS was ($0.35) for the full year period ended January 31, 2001.
— Trintech announced that National Bank of Kuwait (NBK), Kuwait’s leading banking organization, adopted Trintech’s payment infrastructure technology to provide an Internet acquiring solution for the Bank’s online retailers. National Bank of Kuwait is utilizing Trintech’s PayWare eHost to host online retailers enabling them to accept and process credit card transactions. These transactions are routed to PayWare eAcquirer, an Internet Payment Gateway, residing at National Bank of Kuwait. The bank then processes the authorization and settlement requests from the online merchant. Trintech’s security partner, Entrust Technologies, provides the digital certificate technology used to secure the transactions between the merchant and National Bank of Kuwait.
— State Bank of Mauritius (SBM) is licensing products from the Trintech PayWare suite as it plans to develop global eCommerce capabilities and will use Trintech’s PayWare eAcquirer as its Internet payment gateway solution and PayWare eHost as its server based merchant payment system. SBM is a leading commercial bank in Mauritius and has a network of 50 branches in Mauritius, including mainland Africa and in India. SBM recently unveiled plans to establish itself as an offshore, international eCommerce hub by providing online merchants with multi-currency acquiring services.
— This quarter we announced a security alliance with RSA incorporating PayWare(R) and RSA BSAFE(R) SSL-C encryption software. The combined software solution enhances security for financial institutions operating in real and virtual card-based transactions. Trintech will incorporate this enhanced security technology into its PayWare(R) eAcquirer(TM) payment gateway infrastructure solution for financial institutions, payment processors, e-commerce service providers, and card organizations, allowing Trintech’s customers to securely authorize, capture, route and settle all card-based transactions originating from both the physical and virtual worlds of commerce. PayWare eAcquirer provides the technology infrastructure necessary to take advantage of global-based business-to-consumer (B2C) and business-to-business (B2B) opportunities securely.
— Trintech announces the resignation of Jim Bidzos from its Board of Directors. Bidzos served as a Non- Executive Board member since February 1999 and is stepping down in pursuit of other professional endeavours. Since its founding in April 1995, Jim has served as Chairman of VeriSign, Inc., a public key infrastructure (PKI) company, as well as serving as a Director and Vice Chairman of RSA Security, Inc. (formerly known as Security Dynamics Technologies, Inc.) a data security company. His resignation from the Trintech Board of Directors removes any potential conflict of interest with his current executive duties given Trintech’s security alliances with Baltimore Technologies and Entrust Technologies.
— During this quarter we closed three of our acquisitions. The acquisition of Sursoft, a privately held Latin American card management software company was completed on November 15th. Exceptis Technologies, a leading provider of B2B and B2C Internet enabled payment infrastructure solutions for automated payment card dispute resolution and fraud and risk management for card issuers, financial transaction processors, acquirers and merchants was completed on 20th November 2000. We completed the acquisition of the primary assets of Globeset, Inc., an Austin and Dallas, Texas based supplier of secure ePayment infrastructure services and products for buyers, sellers and financial service providers, on December 29th, 2000.
— This quarter we continued to execute our dual growth strategy to plan. Our organic growth remains consistent and we are currently focused on completing the integration of our four acquisitions, Checkline, Sursoft, Exceptis, and Globeset. We have already begun to experience many of the anticipated synergies from the acquisitions such as increased cross selling opportunities for new products to present and newly acquired customers and demand for products in exciting new markets.
— As Trintech continues to execute to plan to become the dominant global provider of secure ePayment infrastructure for the digital economy, we are investing and ensuring that we educate our customers and partners while delivering on shareholder value. With our substantial cash reserves and comprehensive secure ePayment infrastructure solutions, Trintech believes that it is well positioned to capture market share in this consolidating market and lead our partners and customers into the digital commerce economy.
Founded in 1987, Trintech Group PLC is a leading provider of secure electronic payment infrastructure solutions for card-based transactions for physical world commerce, eCommerce and mobile commerce. The company offers a complete range of payment software products for credit, debit, commercial and procurement card applications, as well as being a world leader in the deployment of payment solutions for Internet commerce that are fully SSL and SET(TM) compliant. Trintech’s range of scalable open systems architecture solutions for UNIX(R) and Windows NT(TM) platforms covers consumer, merchant and financial institution requirements for physical payments and the emerging world of electronic commerce.
For complete details on Trintech’s 4Q/00 results visit CardData ([www.carddata.com]).