Trintech posts 31 percent rise in revenue

22-05-2008

by Billy MacInnes

Irish software company Trintech has seen revenue and profit increase during its first quarter of the year.

The firm turned around a net loss of USD548,000 in 2007 to post net income of USD405,000 for the first quarter ending 30 April 2008. Revenues, meanwhile, were up 31 percent year-on-year to USD9.6 million. Gross margins increased to USD6.7 million or 69 percent, compared to USD4.8 million or 66 percent in the same period of 2007.

Trintech also increased its spending on research and development by 17 percent while sales and marketing spending rose by 22 percent. Operating expenses were up 15 percent to USD7.5 million.

Describing the company's performance as "solid", the same term he used for fourth quarter results in February, chairman and CEO Cyril McGuire said recurring revenue, including SaaS fees, was "a major focus of our business model", accounting for 60 percent of first quarter sales.

Software licence revenue was up 40 percent at USD4.9 million and service revenue increased 22 percent to USD4.7 million. Both increases were "primarily due to an increase in EMEA revenues and new revenues generated from the Movaris business".

McGuire said the acquisition of Movaris, a developer of a suite of financial close, enterprise compliance and risk management applications, would provide Trintech "with strong opportunities to cross-sell to our existing 570 customers as well as develop new competitive market positions".

To acquire Movaris, Trintech paid USD7.1 million in cash and 507,750 Trintech American Depositary Shares.

Company president Paul Byrne added that the firm was "starting to achieve the return on the increased investment in sales and marketing programmes we initiated last year, as well as drive synergies, in revenue and cost terms, from our two most recent acquisitions, Movaris and Concuity".

Trintech also announced it had gained gold certified partner status in the Microsoft partner programme with a competency in ISV/Software Solutions.