USA Technologies Announces First Quarter Fiscal 2015 Results

Nov. 14, 2014

MALVERN, Pa.--(BUSINESS WIRE)-- 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 quarter of fiscal 2015 ended September 30, 2014.

First Quarter Financial Highlights:

  • Total revenue of $12.3 million, a year-over-year increase of 21.0%.
  • License and transaction fee revenue of $10.2 million, a year-over-year increase of 19.4%.
  • Adjusted EBITDA of $0.9 million, a year-over-year decrease of 35%.
  • GAAP net loss of $0.1 million, or $(0.01) per share.
  • Non-GAAP net loss of $0.4 million compared to non-GAAP net income of $0.1 million for first quarter of fiscal 2014.

Management Commentary

“In the first quarter our aggressive growth strategies drove the addition of 10,000 net new connections and 600 new customers. We ended the quarter with 276,000 total connections and 7,900 total customers, year-over year increases of 27% and 41%, respectively,” said Stephen P. Herbert, USA Technologies Chairman and Chief Executive Officer. “We also continued our expansion into adjacent markets, such as the laundry, kiosk and amusement and gaming verticals, which accounted for 17% of gross new connections. Connection sales into our existing customer base were 84%. The broad expansion of our customer base reflects, in our view, growing interest in and adoption of cashless payments in self-service retail.”

“With over a decade of experience in cashless payments, 3 years’ experience in mobile payments and what we believe is the largest network of NFC-enabled contactless terminals; we believe USA Technologies is a market leader. To strengthen our market position, drive connection growth and extend customer penetration, we are utilizing innovative marketing programs coupled with new service introductions such as Integrated Payment Services and our MORE prepaid and loyalty program. We expect to realize the benefits of these programs over the course of fiscal 2015 in terms of connection growth, revenue growth and profitability. With a robust pipeline and greater market demand, we believe that USA Technologies remains well positioned for future growth.” Full report