Irish billing and encryption software company Trintech posted first half figures in line with forecasts today and showed an improved cash position, sending its shares up over 26 per cent.
Consolidated sales jumped 82 per cent to $35.4 million in the first half with software licence revenue up 89 per cent to $16.0 million, the group said in a statement.
But the company widened its half-year consolidated net loss to $32.7 million from a loss of $11.5 million in the same period last year, writing off $13.7 million in goodwill.
Analysts said the half year figures were in line with forecasts, adding that the company's cash position was significantly better than expected because of prudent working capital management.
"The cash pile gives comfort" said Ms Jemma Houlihan, analyst at ABN Amro in Dublin, adding she had increased her rating on the stock to "add" from "hold".
Trintech said its cash usage was $5 million for the second quarter with a closing cash balance of $82 million. "The cash-burn rate is under control," Ms Houlihan said, pointing to a 5 per cent decline in operating expenses.
Trintech stock, which has lost 34 per cent since mid-August, was up 27.82 per cent at euro 1.70, leading advancers on Germany's tech-rich Nemax 50 index, which was down 2 per cent.
Traders said institutional investors were buying the stock, which is also listed on the Nasdaq index.
Ms Houlihan said takeover speculation was also driving the share higher after its recent fall. At last night's close, Trintech was trading at a 12 per cent discount to cash, she said. "We think the stock will almost certainly attract some takeover speculation" she added.