CardFlash News Briefs: CSI (IPS); ALLIED WALLET (Ecwid); USAT (Downey); and SHOPKEEP (CEO).
In today’s CardFlash News Que: SYNCHRONY (Sleepy’s); TSYS (Tangerine); DH (Ripple); and USAT (Canteen).
Intel is seeking to integrate the Internet of Things (IoT) with the next generation of vending. The new solution integrates pre-validated building blocks that facilitate the integration of multiple compute workloads.
PA-based USA Technologies (USAT) has inked a multi-year agreement strategic deal with Chase Commerce Solutions (CCS). The agreement will give USAT a bigger reach for products and services domestically as well as outside the U.S and CCS will gain access to a new customer base via the unattended self-service retail market space.
PA-based USAT Technologies continues on its path to reaching its three-year goal of 500,000 connections. The Company is the top provider of wireless, cashless payment and M2M/IoT solutions for small-ticket, self-serve retailing industries.
USAA Technologies has landed a big upgraded contract with Southern Refreshment Services. The latest agreement builds on an already successful, 10-year relationship between the two companies.
USA Technologies has landed one of its biggest deals with a large-scale roll out of e-Port with Five Star Food Service. USA Technologies (USAT) is a specialist in wireless, cashless payment and M2M telemetry solutions for small-ticket.
CardWeb.com’s CardExecs da tabase of card industry movers and shakers today features Maeve McKenna Duska, Vice President of Marketing for USA Technologies. USA Technologies is a leader of wireless, cashless payment and M2M telemetry solutions for small-ticket, self-serve retailing industries. ePort Connect is the company’s flagship service platform, a PCI-compliant, end-to-end suite of cashless payment and telemetry services specially tailored to fit the needs of small ticket, self-service retailing industries.
USA Technologies announced its loyalty and prepaid program, MORE., is now integrated with AirVend’s interactive touchscreen point-of-sale device. The combined solution is designed to provide customers of AirVend added convenience, choice and new revenue opportunities. MORE. lets users of ePort Connect offer their consumers rewards and discount offers for products purchased at their cashless-enabled locations, thus building loyalty, repeat business and a greater understanding of their consumers’ purchasing preferences. MORE. is offered as an extension to USAT’s comprehensive ePort Connect® service, a one-stop cashless payment service that now supports more than 6,650 customers.
USA Technologies, Inc. today announced commercial availability of ePort Online, another new capability added to USAT’s comprehensive ePort Connect® service. ePort Online was designed to alleviate some of the time and effort USAT customers spend processing and following up on payment for invoiced services such as delivery services, equipment sales, catering services and more. USA Technologies is a leader of wireless, cashless payment and M2M telemetry solutions for small-ticket, self-serve retailing industries. ePort Connect® is the company’s flagship service platform, a PCI-compliant, end-to-end suite of cashless payment and telemetry services specially tailored to fit the needs of small ticket, self-service retailing industries.
USA Technologies Celebrates Cashless Adoption in Self-Serve Retail with a Milestone 250,000 Connections to its ePort Connect Service
USA Technologies announced that connections to its end-to-end ePort Connect® service crossed 250,000 during its fourth fiscal quarter ended June 30, 2014. USAT’s ePort Connect service is a PCI-compliant suite of cashless payment and telemetry services specially tailored to fit the needs of self-serve retail industries. Designed to be a “one-stop shop,” services offered through ePort Connect include wireless and merchant account setup, simplified processing rates, settlement and reconciliation, 24 x 7 customer service and a host of value-added services including mobile payment, loyalty programs and integrated payment services for micro-markets and other POS devices.
USA Technologies issued a letter to its shareholders, disclosed below:
As we approach our Annual Meeting of Shareholders to be held on June 18, I wanted to share some highlights with you of our encouraging progress on several important fronts.
Your board of directors’ and management team’s top priority has been to drive USA Technologies to profitability, and deliver increased customer and shareholder value. We have executed on a vision that has delivered enhanced governance, market leadership in self-serve retail, and an unmatched and ever-expanding product and service portfolio. Most importantly, however, we believe that we have delivered a significant financial turnaround to our shareholders, and taken steps that we believe position USA Technologies to achieve our target over the next three to four years of $100 million in revenues and double digit operating margins as we continue to drive connections to our ePort Connect™ service.
We achieved profitability for the first time starting with our quarter ended December 31, 2012, and additionally, we have delivered six consecutive quarters of non-GAAP net income through our latest fiscal quarter ended March 31, 2014. By way of comparison, during our quarter ended September 30, 2011, the quarter ended prior to my taking the role as Chairman and CEO, we had a non-GAAP net loss of ($1,800,000) and for our most recent quarter ended March 31, 2014, we had non-GAAP net income of $321,526, a $2.1 million quarterly increase.
We achieved GAAP net income for the first time during our 2013 fiscal year of $854,123 as well as GAAP net income for our nine months ended March 31, 2014. In comparison, during our fiscal year ended June 30, 2012, we had a GAAP net loss of ($5,200,000), or a $6.1 million improvement in one year.
Due to earnings generated in our fiscal year 2013, and earnings continuing during the nine months of our fiscal year 2014, and what we believe to be the sustainable nature of our recurring revenue service model, in our March 31, 2014 quarter we recognized $26.7 million of deferred tax assets as it became likely that we would utilize these assets as the result of generating future taxable income.
Our business has now achieved what we anticipate will be sustainable cash flows from operations. For our fiscal year 2012, we generated just $78,000 of cash flow from operating activities, however, for fiscal year 2013 and for the nine months of fiscal year 2014, we generated $6.0 million and $4.8 million, respectively.
USA Technologies and its current board have created significant shareholder value. For example, on March 6, 2012, our shares closed at $.94, and recently, on May 29, 2014, our shares closed at $2.01, representing a 112% increase, a substantial increase in market capitalization”from approximately $30.6 million, to approximately $71.5 million.
Our strategy for growth has been straightforward and consistent”to continue to increase the number of new connections to our ePort Connect™ service”and, to continue to create more value for every connection to our service, for both customers and shareholders. Strategies in place to achieve these goals have resulted in a host of additions to our comprehensive solutions suite and to a record number of new connections in the first nine months of fiscal 2014.
Having achieved these important goals for profitability, in fiscal 2014 we set our sights on building momentum in important areas of the self-serve retail market based on our view of how those markets would continue to evolve. Our progress included:
Increasing the number of connections to our service, from 129,000 as of September 30, 2011, to 244,000 as of March 31, 2014, representing an increase of 89%;
Generating the largest portion of our connections from our existing customer base”a base that we believe manages over 2 million potential machines yet to transition to cashless payment;
Leveraging USA Technologies’ early start in mobile-based payment services with over 75,000 locations enabled for the Isis mobile payment and “Fifth Purchase Free” program, one of the nation’s largest implementations of a payment and loyalty program utilizing smartphone technologies;
New consumer engagement services such as our MORE loyalty program, including the recent introduction of a MORE consumer mobile app utilizing eBeacon™ mobile payment technology powered by Bluetooth Low Energy;
Evolution of our ePort Connect™ service to extend our service capabilities across the vending spectrum. New Integrated Payment Services expands USA Technologies’ growth potential beyond the vending machine level”to micro-markets, dining services and other business segments managed by our vending customers;
Important new sales and distribution relationships that allow us to extend our service to other similar markets with ease. For example, in commercial laundry, in fiscal year 2013, we became the exclusive service provider to Setomatic Systems, a relationship that has yielded over 7,500 new connections to our service since that time; and
In taxi and transportation, new agreements with systems integrators in this market have extended the reach of our sales and marketing efforts. For example, within just a few months of introducing ePort GO™ for taxi and transportation businesses, our work with the Verizon Wireless’ business to business team has already resulted in an encouraging number of new customers and connections to our service. We are pleased to report that, during the current fiscal year, our direct sales efforts and that of partners like Verizon have yielded over 12,000 achieved or contracted connections in this important new market.
Our innovation on behalf of our customers continues to earn recognition for USA Technologies. Recently, USA Technologies was honored with the Frost & Sullivan 2014 North American Customer Value Leadership Award in Financial Services and Retail M2M Communications, an award presented to a company that has demonstrated excellence in implementing strategies that proactively create value for its customers. We also earned the top award for the vending category at the 2013 Connected World Value Chain Awards, featuring our value chain partners, Verizon Wireless and Telit Wireless Solutions.
In closing, strong connections, a solid pipeline and a growing list of partners and customers leave us very encouraged about the business. Consumer preferences continue to shift toward cashless and mobile payment trends are already providing added stimulus. As a leader in the cashless movement, we believe that USA Technologies has the experience, the knowledge, the people and the vision to take advantage of these opportunities and build on our momentum.
Your board and management cordially invite you to attend our June 18 Annual Meeting of Shareholders. Whether or not you expect to attend the Annual Meeting in person, we strongly encourage you to vote your shares. If you have questions about USA Technologies’ business or the Annual Meeting, please contact investor relations at 1-800-633-0340, or send an email to [email protected] .
I want to thank you for your support and hope you share the excitement that I feel for the future of USA Technologies.
Best wishes to you and your family,
Stephen P. Herbert
Chairman and Chief Executive Officer”