Trintech agrees healthcare unit sale
Published 04/03/2010 | 05:00
Irish financial software group Trintech has agreed to sell its healthcare unit for more than $34m (e24.7m) in cash.
Releasing full-year results yesterday that showed a 5pc fall in revenue to $32.5m and a near doubling in earnings to $4.9m, Trintech chief executive Cyril McGuire said the sale of the company's healthcare division would enable the company to "tighten its strategic focus" and to solely concentrate on its financial governance, risk and compliance (GRC) business.
The sale of the unit is expected to be completed within one month, and it's being acquired by The Advisory Board, a Nasdaq-listed company. The sale will leave Trintech with $50m in cash on its balance sheet.
Commenting on Trintech's results, Mr McGuire said that margin growth, profitability, operating costs and cash generation exceeded the company's targets.
He added that the firm was targeting 10pc revenue growth in the current fiscal year, and continued earnings growth.
He said there were "encouraging signs of market confidence and stability" in Trintech's target markets.
However, the company noted in its results yesterday that continued economic uncertainty in some European markets was negatively impacting its normal sales cycle.
Software licence revenue at the group's continuing operations rose 3pc year-on-year to $20.1m, while service revenues were down 16pc at $12.3m.
Trintech's main office is in Dallas, Texas.
Its shares, traded on the Nasdaq, soared as much as 50pc yesterday on high volume on news of the disposal.