Irish technology group Trintech said its net loss narrowed in the second quarter amid higher demand at its software licence and service divisions. Dublin-based Trintech, whose shares are listed on the Nasdaq, reported a loss of $2.1 million (€1.6 million) for the three months to the end of July, compared with a year-earlier loss of $3.7 million.
The company said $2 million of its losses was related to its payment systems business, which it agreed to sell to US company VeriFone Holdings earlier this month for $12.1 million. Trintech's net loss from continuing operations amounted to $94,000.
Revenue for the discontinuing payments systems business was $6.5 million, down from $7.3 million a year earlier. It is disposing of the business to concentrate on developing its funds management systems (FMS) business.
"The future growth of Trintech will be focused on its FMS software business, which is a proven business with a strong core customer base and an established market position," said Cyril McGuire, Trintech's chief executive.
"We propose to expand this business franchise through our investment in new products and markets. We will also continue to seek further acquisition opportunities in the FMS target market."
Trintech increased spending on research and development for its FMS business to $1.1 million in the latest quarter, up from $587,000 in the same period last year. The investment will have a negative impact on earnings until the end of the financial year.
Trintech's total operating expenses for the quarter rose 40 per cent to $5.1 million, though its balance sheet remained strong with cash and cash equivalent balances of $29.7 million.
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