Trintech cash flow positive as losses narrow

ELECTRONIC payments firm, Trintech has turned cash flow positive in the third quarter of its financial year.

According to the company it generated $83,000 in cash to add to its existing pile of $41.6 million, the first time in some years that the company has generated cash from operations.

The company also managed to narrow its losses once again, with a loss of 8 cents per share in the third quarter down from 30 cents a year ago.

However, it was not all positive news for the company. Revenues for the three months to the end of October were down 8% toat $10.5 million, from $11.4 million in 2002.

For the nine months revenues were down 5% at $32.4 million.

Product revenue for the nine months increased by some 7% to $6.9 million, but fell in the third quarter by $300,000.

License revenues increased 2% to $17 million over the nine months, and grew slightly to $7.5m in the last three months.

But service revenues fell by 26% in the first nine months of the company’s year.

Chief executive Cyril McGuire said the results for the third quarter were solid and in line with market expectations, with key performance metrics remaining on track.

“Our financial position remains strong and we achieved another important milestone in this quarter of turning cash flow positive from a group perspective.

“Our immediate goal is to make Trintech more competitive, more focused and to be better positioned to pursue new growth opportunities.

“I am confident that Trintech is strategically, operationally and financially well positioned to deliver profitability in the future,” he said. The company said its gross margins expanded to 58% for the third quarter and operating expenses declined for the eleventh consecutive quarter.

The company added that it still had $4.4 million in cash earmarked for a share buyback.