Shares in Trintech rose 5 per cent yesterday despite a warning that third-quarter revenues would be below expectations. The software company also announced it had acquired the customers and one product line of a US competitor, VeriFone.
Trintech paid $3.3 million (€3.75 million) cash for VeriFone's ePS product line which provides payment switching, pre-paid and internet software. Analysts described the deal as "positive" but warned Trintech's preliminary third-quarter results could delay its breakeven target.
Trintech has said it will break even by the fourth quarter but this would be "quite challenging" because of declining revenues, said Mr Paul Phelan, technology analyst with Davy Stockbrokers.
Trintech said yesterday it expected third-quarter revenues of $17-$17.5 million, down from previous guidance of $19-$21 million.
Mr Cyril McGuire, executive chairman of Trintech, said this was due to worsening market conditions and the overall weakening of the global economy.
He would not comment on whether Trintech would break even by the fourth quarter. This would be addressed in a conference call on November 28th, he added.
Mr McGuire said Trintech's target on operating expenses of between $13.5 million and $14.5 million would be met in the quarter. He said this represented a sequential decrease of up to 9 per cent on the second quarter.
Trintech will record an exceptional charge of $1.25 million in relation to the restructuring of its UK business in the quarter. Shares in Trintech closed up 12 cents at €2.19 on the Neuer Markt exchange last night, an increase of 5.8 per cent.
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