Trintech Reports Revenue Growth of 44 Percent

Revenue for the nine months ended October 31, 2004 was $40.7 million compared with $30.8 million for the nine months ended October 31, 2003, an increase of 32 percent. Third quarter revenue increased 44 percent to $15.1 million compared with $10.5 million for the corresponding quarter last year. Product revenue for the nine months ended October 31, 2004 increased 96 percent to $13.5 million this year from $6.9 million last year. Q3 product revenue increased 122 percent to $5.6 million compared with the corresponding quarter last year. Software license revenue for the nine months ended October 31, 2004 remained flat at $17.1 million. Q3 software license revenue increased 9 percent to $6.2 million from $5.7 million in the corresponding quarter last year. Service revenue for the nine months ended October 31, 2004 increased 48 percent to $10.1 million from $6.8 million last year. Service revenue increased 45 percent to $3.3 million this quarter compared with the corresponding quarter last year. The year on year increase includes post-acquisition revenues of the DataFlow Services business. Total gross margin for the nine months ended October 31, 2004 was $24 million, an increase of 42 percent from $16.9 million in the corresponding period last year. Total gross margin for the third quarter was $8.7 million, an increase of 43 percent from $6.1 million in the corresponding quarter last year. Total operating expenses for the nine months ended October 31, 2004 increased 11 percent to $23.2 million from $21.0 million in the corresponding period last year. Adjusted EBITDA operating expenses for the nine months ended October 31, 2004 were $21.9 million, an increase of 9 percent on the Adjusted EBITDA operating expenses for the corresponding period last year. Operating expenses in Q3 increased 10 percent to $8.1 million compared to the corresponding quarter last year. Adjusted EBITDA operating expenses for Q3 were $7.8 million, an increase of 17 percent on the Adjusted EBITDA operating expenses for Q3 last year. Trintechs balance sheet remains strong with closing net cash and cash equivalent balances of $38.8 million as of October 31, 2004. Net cash generation for Q3 was $224,000. Cash generated from operating activities in the third quarter was approximately $757,000 which was primarily used to make repurchases of shares of $338,000, make acquisition related payments of $117,000 in respect of acquisitions made in prior periods and to purchase capital equipment for $150,000. During the quarter, Trintech repurchased 67,720 shares at a total cost of $338,000 under its ongoing stock repurchase program. As of October 31, 2004, approximately $4.1 million remained available for future stock repurchases under this program.