PA-based USA Technologies posted total revenue of $15.4 million, a year-over-year (YOY) increase of 47%. For 2015, management expects total revenue to be above $53.0 million, due to the positive impact of QuickStart on equipment revenue.
License and transaction fees were $11.1 million compared with $9.0 million in the year ago quarter, a 23% increase. These fees, which are comprised of recurring monthly service fees as well as transaction processing fees, accounted for approximately 72% of total revenue. Equipment sales were $4.3 million compared to $1.4 million in last year’s third quarter, a 200% increase.
USAT says it is in a position to take advantage of the cashless momentum in the self-service market, and the excitement surrounding mobile payments. The Company says accelerating revenue growth and improving cash flow, while simultaneously forming strategic relationships with companies such as Chase and MasterCard is the future.
The QuickStart program drove the dramatic increase in equipment revenue, and helped bolster its cash position. USAT believes the results for the quarter are a validation of the broad opportunity in self-service market and it is poised for growth as it continues to capitalize through partnerships and drive customer connections.
USA Technologies provides a broad line of cashless acceptance technologies including its NFC-ready ePort G-series, ePort Mobile for customers on the go, and QuickConnect, an API Web service for developers. USA Technologies has been granted 87 patents; and has agreements with Verizon, Chase, Visa, MasterCard, and customers such as Compass and others.
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