USA Technologies, Inc. (USAT), a leader of wireless, cashless payment and M2M telemetry solutions for small-ticket, self-serve retailing industries, announced that it expects to celebrate a major milestone onJan. 29when USAT reports its financial results for the second quarter of fiscal 2013. USAT expects to achieve non-GAAP (generally accepted accounting principles) net income — for the first time — for its second fiscal quarter endedDec. 31, 2012, following aggressive actions taken by management throughout 2012 to accelerate USAT's "path to profitability".
In addition, USAT released the following preliminary financial results with respect to the second quarter of fiscal 2013.
- Total revenues for the second quarter are expected to be in the range of$8.8 to $8.9 million, reflecting an approximate increase of 29 percent compared to the same period in the prior year.
- Recurring revenues for the second quarter are expected to be approximately 83 percent of total revenues for the second quarter. Recurring revenues are comprised primarily of ePort Connect® license fees and transaction processing fees per connection.
- Total net connections added in the second quarter, which contribute to future recurring revenues, are expected to be approximately 12,000, an increase of 71 percent from the same period a year ago. These preliminary net connections for the quarter would bring USAT's total connected base to 186,000, a 37 percent increase from the same period one year ago.
"Achieving profitability was the cornerstone of our turnaround plan communicated to shareholders almost a year ago," saidStephen P. Herbert, chairman and chief executive officer ofUSA Technologies, in a prepared statement. "As a result, we are extremely excited about delivering on this important promise to shareholders and achieving this important milestone in our growth story. The USAT team has played a pivotal role in bringing cashless payment to the unattended market and this diligence is now paying off.
"A year ago, we took a number of aggressive actions to strengthen revenue, improve margins and reduce expenses to accelerate our path toward profitability," added Herbert. "We also pushed through the challenges of the Durbin Amendment, a leadership transition and a proxy contest all the while growing connections to our service and bringing the business to scale. At the same time, as part of a comprehensive turnaround plan, we positioned the business for the future by expanding our customer base and driving innovation with customer-focused offerings that reflect our service commitment and leadership. We also made across-the-board improvements in corporate governance, including the composition of our board and improved investor transparency. Given these results and the recurring nature of the majority of our revenues, we believe non-GAAP net income is sustainable; therefore, as we have previously stated, we expect to achieve non-GAAP net income for the full fiscal year as well," concluded Herbert.