Cautious Trintech cuts interim losses

Trintech, the secure payment software company, has posted lower-than-expected interim losses and said that, while it remains cautious on its outlook, it is sticking by its forecasts of being at breakeven stage by the end of the current year.

The firm's revenues plummeted by more than 40 per cent in the half year to July 31st compared with the same period last year. But there has been a marked improvement in recent months with second-quarter revenues up 8 per cent compared with the first quarter. Cash burn at the company has also been significantly reduced, as has operating costs.

The interim loss of $5.5 million (€5.6 million) is considerably less than the forecast $7.6 million loss. Yesterday the company's shares closed down more than 3 per cent at €1.27 on the Neuer market.

Chairman and chief executive Mr Cyril McGuire said he believed the worst was over for the technology sector. "We feel we have right-sized the company now," he said.

"Obviously, one swallow doesn't make a spring and the market will be looking to see if what we have done in the last quarter is sustainable. But all I can say is that while we are still cautious, we are very determined and very focused. In broad terms, revenues have stabilised and costs are under control."

He added the company was still on track for a planned $5 million share buy-back. While the current Trintech share price has not yet prompted any takeover offers for the company, the group would keep an open mind if any such offers arose, he said.

Earlier this year, Mr McGuire's brother, Mr John McGuire, stepped back from the chief executive's position at the company to become president, clearing the way for Mr Cyril McGuire to become chief executive as well as chairman.

Yesterday Mr Cyril McGuire said his brother had decided to step back because his strengths lay in technology "which was more important when we were in expansion mode".

He said in the current, more difficult, environment, his own background in investment and finances was more relevant. The two brothers, two of 12 siblings, co-founded Trintech 15 years ago.

The group's revenues in the six months to July 31st plummeted compared with the same period last year as a result of continued depressed global economic conditions, according to Trintech. Revenues were down 41 per cent to $21 million from $35.4 million. However, when judged on a sequential quarterly basis, revenues are up and costs and cash burn have been significantly reduced, it said.

Revenues in the second quarter were down 41 per cent on the same period last year at $10.9 million, but were up by 8 per cent on the previous quarter.

Operating costs were $9.6 million in the second quarter, 12 per cent lower than the previous quarter and 43 per cent lower than the same period last year. Cash burn has also been substantially reduced in recent months, down to $2.1 million in the second quarter from $7.1 million in the first quarter, according to Trintech.