02/11/10 - LML Reports Profitable Results for the Third Quarter and Nine Month Period of Fiscal 2010
Revenue and Profitability Continue to Increase as Company Reports Net Earnings of $0.04 Per Share
VANCOUVER, British Columbia, Feb. 11, 2010 (GLOBE NEWSWIRE) -- LML Payment Systems Inc. ("LML") (Nasdaq:LMLP), a leading payments technology provider of financial payment solutions for e-commerce and traditional businesses, reports results for its third quarter and nine month period ended December 31, 2009.
Revenue for the third quarter ended December 31, 2009 was $4,743,000, an increase of 56% over the $3,037,000 in revenue for the third quarter ended December 31, 2008. GAAP net income for the quarter was $616,000, or $0.02 per share, compared to GAAP net income of $281,000, or $0.01 per share, for the third quarter ended December 31, 2008, an improvement of $335,000 or $0.01 per share.
Non-GAAP net income was $1,057,000, or $0.04 per share, compared to $501,000, or $0.02 per share, for the third quarter last year. Non-GAAP net income excludes stock-based compensation, depreciation and amortization, and other non-cash items. A reconciliation of GAAP to non-GAAP financial measures is attached.
Revenue for the nine month period ended December 31, 2009 was $11,230,000, an increase of 20.7% from revenue of $9,302,000 for the nine month period ended December 31, 2008. GAAP net income for the same period was $1,071,000, or $0.04 per share, compared to GAAP net income of $300,000 or $0.01 per share, for the same period during fiscal 2009, an improvement of $771,000.
Non-GAAP net income for the nine month period ended December 31, 2009 was $2,264,000, or $0.08 per share, compared to $1,613,000, or $0.06 per share, for the same period last year.
"We are pleased with our progress and results. For the quarter, revenue for our Transaction Payment Processing segment increased 20% in Canadian dollars, or 37% in U.S. dollars. These profitable results allowed us to continue to make investments in the growth of our business, and this past quarter we increased spending in product development and sales and marketing by 141% and 37% respectively. As anticipated, we saw a decline in check processing revenue but still produced profitable results from the segment as well. Revenue from our intellectual property segment increased approximately 256% for the quarter and 91% for the first nine months driven by our recent settlement with one defendant and by increases in running royalties from existing licensees. We continue to believe in the validity and enforceability of our intellectual property as we continue to move forward with licensing and enforcement action," said Patrick H. Gaines, Chief Executive Officer.
Q3 Highlights
-Overall revenue increased 56%
-Transaction Payment Processing segment revenue increased 20% in Canadian dollars, or 37% in U.S. dollars
-Net income of $616,000 compared to $281,000 last year, an improvement of $335,000
-Subsidiary settles lawsuit and provides patent license to 1 of 25 defendants in Texas litigation
-EPS increased to $0.02
9 Months Highlights
-Overall revenue increased 21%
-Transaction Payment Processing segment revenue increased 20%
-Net income of $1,071,000 compared to $300,000 last year, an improvement of $771,000
-EPS increased to $0.04
Conference Call
Management will host a conference call on February 11, 2010 at 1:30pm Pacific Time (4:30 pm Eastern Time) to discuss these results. To participate in the conference call, please dial in 5-10 minutes before the start of the call and follow the operator's instruction. If you are calling from the United States or Canada, please dial 800-768-8804. International callers please dial 212-231-2905.
If you are unable to join the call, a telephone replay will be available through February 23, 2010 by dialing 800-633-8284 from within the U.S. or Canada, or 402-977-9140 if calling internationally. Please reference reservation number 21459088 when prompted.
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