Revenue for the year ended March 31, 2010 was approximately $14.8 million compared to $12.3 million for the previous year - an increase of approximately 20%. Gross profit was $7.2 million or 48%. Income from operations was $1.2 million compared to $600,000 last year, an improvement of $551,000 or 92%. Income before taxes was $1,161,000 compared to $1,034,000 last year, an improvement of $127,000 or 12.3%. Net loss was ($126,000) or ($0.00) per share, compared to net income of $5,455,000 or $0.20 per share, last year.
Non-GAAP
Non-GAAP net income for fiscal year 2010 was approximately $3.7 million or $0.14 per share compared to approximately $1.9 million or $0.07 per share for fiscal 2009. Non-GAAP net income excludes stock-based compensation, depreciation and amortization, and other non-cash and non-recurring items.
"Overall, we are pleased with these results. All three of our business units produced positive cash flow. We were able to retire the remaining portion of our long-term debt of $2.3 million and produced $1,135,000 in cash from operations. Revenue in our TPP segment continued to grow at a 20% rate and we met some of the challenges confronting our check segment by continuing to maintain efficiencies. During the year, we entered into settlement discussions with many defendants, while entering into a license with one, regarding our patent litigation. Our tax planning strategy resulted in a non-cash future tax charge of $2.1 million for the year that had an impact on net earnings, but, importantly, we expect to be in a position this year to recover approximately $1.5 million in tax amounts paid and to shelter future taxable income as a result," said Patrick H. Gaines, Chief Executive Officer of LML.
Fiscal Year Highlights
- Revenue: $14.8 million - up 20%
- Income from operations: $1,147,000 - up 92% from last year
- Pre-tax net income $1,161,000, up 12.3%
- Retired last $2,321,000 of debt associated with Beanstream acquisition
- Cash provided from operations $1,135,000, an increase of $1,438,000 from last year
- New customers: 466
- New Channel Sales Partners: 112
- First defendant signed license and settled patent litigation in Eastern District of Texas
Conference Call
Management will host a conference call today at 1:30pm Pacific Time (4:30pm Eastern Time) to discuss these results. To participate in the conference call, please dial in 5-10 minutes before the start of the call and follow the operator's instruction. If you are calling from the United States or Canada, please dial 1-800-931-6361. International callers please dial 212-231-2915.
If you are unable to join the call, an audio recording of the call will be available on our website at www.lmlpayment.com.
LML Payment Systems Inc., through its subsidiaries Beanstream Internet Commerce Inc. in Canada and LML Payment Systems Corp. in the U.S., is a leading provider of financial payment processing solutions for e-commerce and traditional businesses. We provide credit card processing, online debit, electronic funds transfer, automated clearinghouse payment processing and authentication services, along with routing of selected transactions to third party processors and banks for authorization and settlement. Our intellectual property estate, owned by subsidiary LML Patent Corp., includes U.S. Patent No. RE40220, No. 6,354,491, No. 6,283,366, No. 6,164,528, and No. 5,484,988 all of which relate to electronic check processing methods and systems.
