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USA Technologies, Inc. (NASDAQ: USAT) (“USAT”), a leader of wireless, cashless payment and M2M telemetry solutions for small-ticket, self-serve retailing industries, today reported results for the first fiscal quarter ended September 30, 2013.
First quarter financial highlights, compared to the corresponding quarter in the prior year, included:
23% increase in license and transaction fee revenues to $8.5 million;
21% increase in total revenues to $10.1 million;
Adjusted EBITDA of $1.5 million up from $0.7 million;
GAAP net income of $293,654 from $39,140; and
Non-GAAP net income of $74,557, up from a non-GAAP net loss of ($95,993).
License and transaction fee revenues, which represented 84% of total revenues in the quarter, were largely driven by connections to USAT’s comprehensive and turnkey cashless payment and M2M telemetry service, ePort Connect
®. Total connections to ePort Connect reached 217,000 as of September 30, 2013, a 25% increase over total connections as of September 30, 2012.
“Our first quarter results reflect solid progress toward our fiscal 2014 objectives that include 25%-30% growth in service revenues and the doubling of non-GAAP net income for the fiscal year,” said Stephen P. Herbert, USAT’s chairman and chief executive officer. “We added 14,000 new connections to our ePort Connect service in the quarter, which more than offset the 11,000 deactivations during the quarter that we had announced on last quarter’s conference call.
“Our customer base grew by 50% from the first quarter a year ago, to 5,600 customers as of September 30, 2013, which we believe further demonstrates a growing awareness for cashless among both large and small businesses,” continued Herbert. “In addition, our efforts to strengthen our presence in other adjacent self-serve retail markets beyond vending, such as commercial laundry, amusement and transportation, also progressed well in the first quarter. And, we had a solid quarter of contribution from our web service, QuickConnect™, with a mobile-based payment application that contributed to approximately 2,800 new connections in the first quarter. Our QuickConnect product is attracting more developers and manufacturers looking for a streamlined cashless payment solution like ePort Connect.’’