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 second fiscal quarter ended December 31, 2013.
“During the second quarter, we continued to drive new connections and new customers to our ePort Connect® service across all vertical markets,” said Stephen P. Herbert, USAT’s chairman and chief executive officer. “By leveraging our existing customer base and industry diversification strategies, we gained 17,000 new connections to our ePort Connect service in the quarter, strong results that helped us offset 10,000 deactivations from a customer that we previously announced was transitioning away from our service. In addition, our customer base grew by 48% from the prior year, to 6,075 customers at the end of the quarter, reflecting what we believe to be a growing awareness for cashless in the self-serve retail market.
“We also generated our second highest level of GAAP and non-GAAP net income in the second quarter—solid progress as we work toward our fiscal 2014 objectives that include the doubling of non-GAAP net income for the fiscal year,” said Herbert.
Highlights for the second quarter, compared to the corresponding quarter in the prior year, included:
- GAAP net income of $409,191 up from $153,758;
- Non-GAAP net income of $447,087, down from non-GAAP net income of $557,393;
- Earnings per diluted share, both GAAP and non-GAAP, of $.01 and $.01, respectively, compared to $.00 and $.02, respectively, for the second quarter of fiscal 2013;
- Total revenues of $10.6 million, a 19% increase;
- License and transaction fee revenue of $8.7 million, a 17% increase; and
- Adjusted EBITDA of $1.9 million, an 8% increase.
- Total ePort Connect customers grew to 6,075 as of December 31, 2013, a 48% increase compared to total customers as of December 31, 2012.
- Total connections to USAT’s ePort Connect service grew to 224,000 as of December 31, 2013, up from 186,000 connections as of December 31, 2012, an increase of 20%.