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Fresh from its $85 million acquisition of Cantaloupe Systems Inc., USA Technologies Inc. reported Thursday that it added 311,000 net new connections to its network of vending machines and other unattended card-accepting merchant locations in the quarter ended Dec. 31.
Approximately 270,000 of the new connections came from Cantaloupe, a vending industry software provider that Malvern, Pa.-based USA Technologies acquired in November for $85 million. The network now has 905,000 connections, up 93% from 469,000 at the end of 2016. USAT said it expects to have as many as 1.07 million connections by June 30.
Network transactions totaled 144.8 million in fiscal 2018’s second quarter, a 45% increase from 100.1 million in the prior-year quarter. Quarterly volume rose 42% to $272.7 million from last year’s $191.5 million.
“We are very pleased with the significant progress we have made in integrating Cantaloupe into our organization,” USAT chairman and chief executive Stephen P. Herbert said in a statement. “Our strong second-quarter results were fueled by our ability to leverage our combined platform to provide a turn-key enterprise solution to our customers.” He added that USAT has already cross-sold Cantaloupe’s cloud-based analytics services to 20 customers.
Revenues increased 49% to $32.5 million from $21.8 million in fiscal 2017’s second quarter. The company reported a net loss of $12.5 million compared with net income of $233,000 a year earlier. The loss included one-time charges of $9.1 million related to the new federal tax law and $3.4 million for acquisition and integration expenses.
