Revenue was $5.7 million for the second quarter of 2012, which was consistent with revenue of $5.7 million for the second quarter of 2011. Revenue for the six months ended June 30, 2012, was $11.1 million, compared with $10.4 million for the six months ended June 30, 2011, representing a 7% increase.
This revenue performance resulted from continued sales strength in the Company’s EFT Server products as a whole combined with increased maintenance and support (M&S) contract renewal sales across the majority of its product lines. The increase in M&S renewals combined with strong bookings for future product sales and services resulted in the Company’s deferred revenue, plus contractual agreements under which revenue will be earned in future periods, growing to $8.8 million at June 30, 2012 from $7.8 million at June 30, 2011, or an increase of 12%.
The Company reported a net loss of $140,000, or ($0.01) per share, in the second quarter of 2012, compared with net income of $471,000, or $0.03 per share, in the same quarter last year. Adjusted EBITDA was $478,000 in the second quarter of 2012 compared with $1.2 million for the same period in 2011.For the six months ended June 30, 2012, the Company reported a net loss of $393,000 or ($0.02) per share compared with net income of $529,000 or $0.03 per share for the comparable period in 2011. Adjusted EBITDA was $658,000 for the six months ended June 30, 2012 compared with $1.7 million for the same period in 2011. Operating expenses were approximately 16% higher in the second quarter of 2012 compared with the same quarter in 2011, and approximately 20% higher for the first six months of 2012 compared to the same period in 2011. The increase was primarily due to the integration of TappIn, Inc., acquired in December 2011, into the Company’s operations and the incremental costs of the ongoing development and management of that product line. These higher operating expenses contributed to the net loss and lower Adjusted EBITDA in the second quarter of 2012 even though revenue was essentially the same as the second quarter of 2011. Operating expenses in the second half of 2012 are expected to be comparable with the first half of the 2012.