Trintech Reports Fiscal Year 2006 First Quarter Financial Results

Trintech Reports Net Income of $392,000 for the Quarter and Revenue Growth of 6 Percent


DUBLIN, Ireland and DALLAS, May 25, 2005 (PRIMEZONE) -- Trintech Group Plc (Nasdaq:TTPA) (Prime Standard:TTP), a leading provider of transaction reconciliation and payment infrastructure solutions, today announced first quarter revenues of $13.1 million and net income of $392,000, equivalent to a basic and diluted net income per equivalent American Depositary Share (ADS) of $0.03 and $0.02, respectively.

Highlights


 -- Revenue growth of 6 percent in Q1 compared to corresponding 
    quarter last year.
 -- Trintech maintains profitability in Q1, with a net income of 
    $392,000 and an Adjusted EBITDA net income of $603,000. Adjusted 
    EBITDA net income for Q1 excludes amortization of purchased 
    intangible assets, depreciation, interest income, net and income 
    taxes.
 -- Gross margins continue to expand to 64 percent in Q1, a sequential 
    increase from 61 percent for the previous quarter.
 -- Basic and diluted net income per equivalent ADS for the quarter 
    ended April 30, 2005 was $0.03 and $0.02, respectively, compared 
    with basic and diluted net income per equivalent ADS of $0.01 for 
    the corresponding quarter ended April 30, 2004.

Cyril McGuire, Chairman and Chief Executive Officer commenting on the results said: "The results for Q1 were solid, with Trintech achieving continued profitable growth. Our strategy of focusing on key core products in our Payments and Funds Management Systems divisions is providing a good pipeline of new business. In what is still a cautious technology market, we are continuing to make investment in new products and new markets to strengthen our competitive position."

Recent highlights include:

-- Trintech announced that KinderCare Learning Centers selected Trintech's ReconNET to reconcile their ACH payments, credit card transactions and non-sufficient funds transactions. In addition, KinderCare Learning Centers selected Trintech's Bank Fee Analysis to monitor bank fees and secure consistent rates across accounts.

-- Trintech announced that Halifax Bank of Scotland (HBOS), one of the fastest-growing card issuers in the U.K., selected PayWare Resolve to more efficiently manage its cardholder disputes. As well as improving efficiency, PayWare Resolve will also help to ensure that HBOS remains compliant as card association dispute rules change.

-- Trintech announced that the Antioch Company selected PayWare ERP and Card Secure to enable secure and cost-effective payment card processing. Based in St. Cloud, Minnesota, the Antioch Company is a leading supplier of printed products, including diaries, journals, and photo-albums. By combining PayWare ERP and Card Secure together, the Antioch Company is able to automate the acceptance of all types of payment cards and ensure all transaction data is fully secure.

-- Trintech announced that Dublin's new state of the art Light Rail Transit (LRT) system -- Luas -- implemented Trintech's bank-accredited PayWare Merchant card authorization solution to power secure debit and credit card transactions at unattended touch-screen ticket vending machines.

-- Trintech announced that Peter Mark, with 68 hair salons in Ireland, selected Trintech's ReconNET to automate the verification and reconciliation of its cash, check and credit card deposits. ReconNET will enable Peter Mark to improve store-level efficiencies and reduce costs by tightening controls on all cash, checks and credit card payments.

-- Trintech announced that TUI Northern Europe, a division of TUI AG, the world's largest tourism and services group, selected Trintech's ReconNET to automate the verification and reconciliation of cash banking and credit card transactions, including foreign currency deposits from Forex Bureaus distributed throughout its 1,100 agencies.

-- Trintech announced the signing of a distributor agreement with Technolab International to market Trintech's reconciliation and data collection solutions in Mexico and Latin America. Under the terms of the agreement, Technolab International will sell, implement and provide support for Trintech's ReconNET funds management solution and the DataFlow Transaction Network to its bank and retail clients.

-- Trintech announced the release of ReconNET 7.1, the latest version of its flagship reconciliation and account balancing application. ReconNET 7.1 features increased levels of intelligence built into the system, reducing the expertise required at the user level, and interface improvements in navigation and display designed to improve productivity.

-- Trintech announced the availability of a new User Access Report to support ongoing Sarbanes-Oxley Section 404 documentation requirements for internal controls. The new ReconNET User Access Report enables companies to proactively analyze their user access controls and facilitate their efforts to document financial processes to comply with recurring Sarbanes-Oxley audit requirements.

-- Trintech announced at CeBIT 2005, that PayWare OpenPay has successfully passed Visa's PIN Entry Device (PED) Class B certification. Trintech is the first company in the world to achieve Visa PED Class B certification for devices operating in unattended environments.

-- Trintech announced that its application to revoke the admission of the Company's American Depositary Shares (ADSs) had been approved by the Frankfurt Stock Exchange. The revocation was effective on May 11, 2005. Accordingly, Trintech ADSs ceased trading on the Frankfurt Stock Exchange on that date.

-- Trintech announced the appointment of Paul Byrne as President, in addition to his role as Chief Financial Officer, where he will have overall responsibility for sales, marketing, development, operations, finance and corporate affairs.

-- Trintech announced the appointment of David Colf as VP & General Counsel for Trintech Group Plc. David previously worked with Hewlett Packard, where he held the post of Strategic Business Manager, bringing HP's digital TV business to market. Results Overview:

Revenue for the quarter ended April 30, 2005 was $13.1 million compared with $12.4 million for the corresponding quarter last year, an increase of 6 percent.

Product revenue for the quarter ended April 30, 2005 decreased 11 percent to $3.2 million compared to $3.6 million for the corresponding quarter last year.

License revenue for the quarter ended April 30, 2005 increased 24 percent to $6.7 million from $5.4 million for Q1 last year.

Service revenue for the quarter ended April 30, 2005 decreased 3 percent to $3.2 million from $3.3 million for the corresponding quarter last year.

Total gross margin for the quarter ended April 30, 2005 was $8.4 million, an increase of 8 percent from $7.8 million in the corresponding period last year.

Operating expenses in Q1 increased 5 percent to $8.1 million compared to $7.8 million in the corresponding quarter last year. Adjusted EBITDA operating expenses for Q1 this year were $7.8 million, an increase of 9 percent on the Adjusted EBITDA operating expenses for Q1 last year of $7.2 million.

Trintech's balance sheet remains strong with closing net cash and cash equivalent balances of $38.6 million. Net cash usage for Q1 was $607,000. Acquisition related payments of $1.2 million were made in respect of acquisitions made in prior periods, which was partially offset by cash generated from operating and financing activities of approximately $600,000.

During the quarter, Trintech did not repurchase shares under its stock repurchase program. As of April 30, 2005, approximately $4.1 million remained available for future repurchases under this program.

"Trintech's first quarter results demonstrate our continued execution and momentum in building the foundation for sustained profitability and enhanced shareholder value by focussing on revenue growth, margin expansion and strong cash management. Revenue grew by 6 percent in Q1 compared to the prior year. Gross margins expanded again in Q1 to 64 percent. We are pleased that Trintech has now been generating cash from operations for six consecutive quarters," said Paul Byrne, President and Chief Financial Officer.

Trintech will host a conference call to discuss its financial results and business outlook beginning at 15:30hrs (U.K. Time) today, May 25th 2005. Please see advisory for information on the call.

A web simulcast of Trintech's conference call reviewing our performance for Q1 fiscal year 2006 and our business outlook for Q2 fiscal year 2006 will be broadcast live today, Wednesday, May 25th 2005 at 3:30 PM (U.K. Time), 10:30 AM (NY Time) and 07:30 AM (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 (5670225#).

About Trintech

Trintech is a leading provider of transaction reconciliation and payment infrastructure solutions to retailers, financial institutions, payment processors and network operators globally. Built on 18 years of experience, Trintech's solutions manage each area of the payment transaction cycle from authentication, authorization, settlement, dispute resolution and reconciliation -- enabling its customers to reduce transaction costs, eliminate fraud, minimize risk, maximize cashflow and increase profitability. Trintech can be contacted in Ireland at Trintech Building, South County Business Park, Leopardstown, Dublin 18 (Tel: +353 1 2074000), in the U.S. at 15851 Dallas Parkway, Suite 855, Addison, TX 75001 (Tel: +1 972 701 9802), and in the U.K. at 186-192 Darkes Lane, Potters Bar, Hertfordshire, EN6 1AF (Tel: +44 (0) 1707 827000). www.trintech.com.

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 competitive position, pipeline of new business, growth opportunities and Trintech's ability to successfully execute its business strategy and deliver continued profitability and enhanced shareholder value. Factors that could cause or contribute to such differences include Trintech's ability to accurately predict future sales, its ability to accurately predict customer needs and to successfully position itself in the market, the long term health of Trintech's business and ability to improve performance of the organization, the ability of its customers to fulfill their commitments to adopt Trintech's secure payment technology, the growth of the secure payments software and services market, Trintech's ability to develop, market and sell secure payments and treasury and cash management software, the market acceptance of the security standards for payment transactions, the ability to improve and expand the functionality of products, the ability to develop strategic relationships, the ability to react to rapid technological change rapidly and the effects of macroeconomic uncertainty on the demand for Trintech's products. 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, 2005, filed with the U.S. Securities and Exchange Commission (www.sec.gov). Lastly, Trintech assumes no obligation to update these forward-looking statements.


                           TRINTECH GROUP PLC
                  CONDENSED CONSOLIDATED BALANCE SHEETS
      (U.S. dollars in thousands, except share and per share data)
                                           April 30,         January 31,
                                              2005              2005

 ASSETS
 Current assets:
 Cash and cash equivalents              $         38,573   $        39,180
 Accounts receivable, net of allowance
 for doubtful accounts of
    $645 and $787 respectively                    10,367             9,479
 Inventories                                       1,375             1,184
 Value added taxes                                   327               531
 Prepaid expenses and other assets                 1,904             2,105
 Amounts due from / prepaid to related
 parties                                             448               451

           Total current assets                   52,994            52,930
 Restricted cash                                     670               672
 Property and equipment, net                         781               824
 Other non-current assets                          2,935             3,147
 Goodwill, net of accumulated
 amortization and impairment of $84,471
  at April 30, 2005 and January 31,
 2005 respectively                                 8,613             8,613

          Total assets                 $         65,993   $        66,186

 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current liabilities:
 Bank overdraft                         $            614   $           568
 Accounts payable                                  4,188             4,806
 Amounts due to related parties                      448                --
 Accrued payroll and related expenses              1,771             1,884
 Deferred consideration                            1,251             2,398
 Other accrued liabilities                         3,604             3,413
 Value added taxes                                   903               630
 Warranty reserve                                    345               395
 Deferred revenue                                  9,211             8,946

          Total current liabilities               22,335            23,040

 Series B preference shares, $0.0027
 par value
    10,000,000 authorized;

   None issued and outstanding                       --                 --

 Shareholders' equity:
    Ordinary Shares, $0.0027 par value:
 100,000,000 shares authorized;
    31,239,005 and 31,160,091 shares
 issued and 31,019,967
    and 30,908,635 shares outstanding
 at April 30, 2005 and
    January 31, 2005, respectively.                   84                84
 Additional paid-in capital                      246,376           246,283
 Treasury shares (219,038 and 251,456
 at April 30, 2005 and
 January 31, 2005, respectively)                   (363)             (416)
 Accumulated deficit                           (199,762)         (200,154)
 Accumulated other comprehensive loss            (2,677)           (2,651)

          Total shareholders' equity             43,658            43,146

           Total liabilities and
 shareholders' equity                   $         65,993   $        66,186

                TRINTECH GROUP PLC
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 (U.S. dollars in thousands, except share and per
                   share data)
                           Three months
                          ended April 30,
                        2005             2004
 Revenue:
    Product       $        3,202   $        3,600
    License                6,699            5,421
    Service                3,237            3,346


 Total Revenue            13,138           12,367

 Cost of
 revenue:
    Product                2,532            2,235
    License                  894              937
    Service                1,322            1,423

 Total Cost of
 Revenue                   4,748            4,595

 Gross Margin              8,390            7,772

 Operating
 expenses:
    Research &
 development               2,240            2,178
    Sales &
 marketing                 2,482            2,237
    General &
 administrative            3,214            2,968

 Restructuring
 charge                       --              306
    Amortization
 of purchased
 intangible
 assets                      212              211
    Adjustment of
 acquisition
 liabilities                  --             (249)
    Stock
 compensation                 --               101

           Total
 operating
 expenses                  8,148            7,752

 Income from
 operations                  242               20

    Interest
 income, net                 201               82
    Exchange
 gain (loss),
 net                          43             (18)
 Income before
 provision
 for income
 taxes                       486               84

    Provision
 for income
 taxes                      (94)              --

 Net income       $          392   $           84

 Basic net income
 per Ordinary
 Share            $         0.01   $         0.00

 Shares used in
 computing basic
 net
  income per
 Ordinary Share       30,929,028       30,676,240

 Diluted net
 income per
 Ordinary Share   $         0.01   $         0.00

 Shares used in
 computing
 diluted net
  income per
 Ordinary Share       32,627,613       31,474,350

 Basic net income
 per equivalent
 ADS              $         0.03   $         0.01
 Diluted net
 income per
 equivalent ADS   $         0.02   $         0.01

                          TRINTECH GROUP PLC
      RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA NET INCOME
                      (U.S. dollars in thousands)

                                          Three months
                                        ended April 30,


                                          2005                   2004

 Net income                 $               392    $                84

      Adjustments:
      Depreciation                          106                    224
      Amortization of
 purchased intangible
 assets                                     212                    211
      Adjustment of
 acquisition liabilities                     --                  (249)
      Stock compensation                     --                    101
      Restructuring charge                   --                    306
      Interest income, net                (201)                   (82)
      Income taxes                           94                    --

 Adjusted Earnings Before
 Interest, Taxation,
 Depreciation and
 Amortization (EBITDA) net
 income                      $              603    $               595

Note: Management believes Adjusted EBITDA net income is an important measure of Company performance without consideration of the non-operating expense adjusted above as it presents a clearer view of operational performance changes between the comparative periods.



                         TRINTECH GROUP PLC
  RECONCILIATION OF OPERATING EXPENSES TO ADJUSTED EBITDA OPERATING
                              EXPENSES
                     (U.S. dollars in thousands)

                                          Three months
                                        ended April 30,

                                          2005                   2004

 Total operating expenses   $             8,148    $             7,752

     Adjustments:

      Restructuring charge                  --                   (306)
      Depreciation                         (89)                  (208)
      Amortization of
 purchased intangible
 assets                                   (212)                  (211)
      Adjustment of
 acquisition liabilities                    --                     249
      Stock compensation                    --                   (101)
 Adjusted EBITDA operating
 expenses                    $            7,847    $             7,175

Note: Management believes Adjusted EBITDA operating expenses is an important measure of Company performance without consideration of the non-operating expense adjusted above as it presents a clearer view of operational performance changes between the comparative periods.



                          TRINTECH GROUP PLC
            CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                      (U.S. dollars in thousands)

                                           Three months
                                          ended April 30,
                                    2005                   2004
 CASH FLOWS FROM
 OPERATING ACTIVITIES:
 Net income                $                392   $                 84
 Adjustments to
 reconcile net income to
 net cash provided by
 operating activities:
    Depreciation                            106                    224
    Amortization                            212                    211

    Stock compensation                      --                      101
    Effect of changes in
    foreign currency
    exchange rates                         (57)                  (177)
    Changes in operating
    assets and
    liabilities:
          Inventories                     (196)                   (60)
          Accounts
          receivable                      (413)                  2,128
          Prepaid
          expenses and
          other assets                    (241)                  (590)
          Value added
          tax receivable                    205                    155
          Accounts
          payable                         (163)                (1,580)
          Accrued
          payroll and
          related
          expenses                        (110)                  (560)
          Deferred
          revenues                          249                  1,065
          Value added
          tax payable                       265                  (250)
          Warranty
          reserve                          (48)                    --
          Other accrued
          liabilities                       302                   (67)
 Net cash provided by                       503                    684
 operating activities
 CASH FLOWS FROM
 INVESTING ACTIVITIES:
 Purchases of property
 and equipment                             (62)                  (114)
 Payments relating to
 acquisitions                           (1,194)                  (362)
 Net cash used in                       (1,256)                  (476)
 investing activities

 CASH FLOWS FROM
 FINANCING ACTIVITIES:
 Principal payments on
 capital leases                            (56)                   (96)
 Issuance of ordinary
 shares                                     146                    130

 Expense of share issue                      --                   (10)
 Proceeds under bank
 overdraft facility                          46                    --
 Reductions to
 restricted cash
 deposits                                     2                    656
 Net cash provided by                       138                    680
 financing activities

 Net (decrease)/increase
 in cash and cash
 equivalents                              (615)                    888
 Effect of exchange rate
 changes on cash and cash
 equivalents                                  8                   (66)
 Cash and cash
 equivalents at
 beginning of period                     39,180                 36,864
 Cash and cash
 equivalents at end of
 period                    $             38,573   $             37,686

Supplemental disclosure of cash flow information



   Interest paid          $                  6   $                 11
   Taxes
   (received)/paid        $              (158)   $                212

 Supplemental disclosure
 of non-cash flow
 information
    Acquisition of
    property and
    equipment under
    capital leases         $               --    $                --

The full press release including tables can be downloaded from the following link: http://hugin.info/130706/R/995701/151034.pdf



            

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