Payments software company Trintech reported its first quarterly loss in almost two years yesterday after taking an exceptional charge relating to warranties on some of its goods.

The second-quarter net loss, including the $3.9 million (€3.01 million) exceptional charge, was $3.7 million, according to figures released by the Dublin-based company. Excluding the one-time charge, Trintech generated net income of $225,000.

Trintech, which makes security software for electronic payment systems such as ATMs and credit cards, is listed on the Nasdaq. Revenue fell 4.5 per cent to $12.6 million in the three months ended July, missing the original analyst estimate for revenue of about $14 million.

Trintech earlier this month warned it would miss the target because of a decline in demand for chip and pin technology. The 35 per cent drop in product revenue was partly offset by an 8 per cent rise in licensing revenue and a 13 per cent jump in service revenue.

"Trintech's second quarter results were impacted negatively by the once-off provision relating to the extension of warranty periods for certain hardware products deployed in Europe," Paul Byrne, the group's president said in a statement accompanying the results.

He said Trintech would work closely with its customers and absorb any repair costs relating to technical difficulties currently being experienced with some of its products. It hopes to start redistributing the goods in October.

Trintech, which provides technology for more than 1,200 customers, including Bank of Ireland and AIB, said it is considering a "number of strategic acquisitions".

The group last reported a quarterly loss in the third quarter of its 2003 financial year. Trintech said yesterday it is forecasting third-quarter revenue of between $10.5 million and $12.5 million and a net loss of between $250,000 and $750,000.