Irish technology company Trintech, which today announced full-year revenues of $32.5 million, is to sell its healthcare division for $34.5 million in cash.
The firm, which has its main office in Dallas, Texas, said this morning it has signed a definitive agreement for the sale of its healthcare division, Concuity, to the Nasdaq-listed Advisory Board Company.
Under the terms of the agreement, the Advisory Board Company will pay Trintech $34.5 million cash for all of the outstanding shares of a newly formed Trintech subsidiary which, prior to closing, will hold the majority of the assets and liabilities of the Concuity business.
The purchase price is subject to a working capital adjustment at the closing date and an escrow amount of $6 million to be set aside with $2 million being released after 9 months and the remainder no later than December 31st, 2011.
The sale has been approved by the boards of directors of both firms and is expected to be completed within one month.
Announcing both its fourth quarter and full-year results today, Trintech recorded fourth quarter revenues of $7.9 million, unchanged from a year earlier. Adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) net income totalled $1.4 million while net income was $910,000 for the final three months of fiscal 2010.
This compares with an adjusted Ebitda net income from continuing operations of $649,000 for the same quarter a year earlier.
For the year as a whole, the company posted revenues of $32.5 million, down 5 per cent from the €34.3 million recorded a year earlier.
Full-year adjusted Ebitda net income of $4.9 million and net income of $2.6 million.
Trintech generated $2.6 million cash for the 2010 fiscal year and increased its cash balances to $20.1 million.
Gross margin from continuing operations amounted to $5.7 million in the final quarter of the fiscal year, representing 73 per cent of revenues. This compares to $5.5 million and 70 per cent of revenues for the same quarter a year earlier.
The company said R&D expenditure was down by less than 1 per cent in the 2010 fiscal year compared with the prior 12-month period.
Sales and marketing expenditure decreased overall by 25 per cent in the 2010 fiscal year from $10.7 million to $8 million.
"Following the Concuity sale, we will have a strengthened balance sheet of over $50 million cash and will target growth in our core Financial GRC business," said Trintech chairman and CEO Cyril McGuire.
"Our outlook for the fiscal year 2011 is for robust growth of 10 per cent in revenues and continued earnings growth as the global economy recovers with encouraging signs of market confidence and stability building in the US and internationally in our target markets,” he added.
