Eye on Earnings: Hypercom, ORC, USA Technologies, Jack Henry

Some high-profile payment-industry technology providers are reporting increases in their operating measures but are still struggling to make a profit in 2008 as they expand or try to compete in a tough market. –Boosted by demand in North America for countertop terminals and more networking and other services revenues, point-of-sale technology purveyor Hypercom Corp. late Tuesday reported net first-quarter revenues of $71.7 million, up 11% from $64.8 million in 2007's first quarter, and a reduced loss of $332,000 compared with the year-earlier period's $2.53 million loss. Financially struggling Hypercom has implemented a number of cost-control measures to restore profitability, including the outsourcing of its manufacturing. Part of the first-quarter loss came from one-time costs for shutting down Asian manufacturing operations. In a conference call with analysts, president and chief executive Philippe Tartavull said Hypercom established “forward momentum” in North American countertop sales that offset some decreases in international markets, and that its recent acquisition of France-based Thales e-Transactions, which closed April 1, would enhance margins. Phoenix-based Hypercom recently introduced its Optimum M4200 line of mobile-payment terminals. –Online Resources Corp. reports that it handled 54.5 million bill-payment transactions through its financial-institution and direct biller clients in the first quarter, up 15% from 47.5 million in 2007's first quarter. The Chantilly, Va.-based bill-pay technology firm says it had 13.3 million active users in the first quarter, an increase of 39% from 9.51 million in the year-earlier period. Online Resources posted a net loss available to common shareholders of $3.58 million, down from $9.45 million a year earlier. Revenues increased 27% to $39.2 million from $30.8 million in 2007's first quarter. –USA Technologies Inc., the Malvern, Pa.-based supplier of card readers for vending machines, reported Tuesday that about 31,000 of its e-Port card readers were connected to its USALive network as of March 31, more than double the 14,000 devices in the network a year earlier. The company says it has orders for 6,200 of its new e-Port G7 card readers representing $2.74 million in revenues. USA Technologies, which works with MasterCard Inc. to expand acceptance of the MasterCard PayPass contactless card, says 17,500 vending machines now accept PayPass, an increase of 4,000 locations. USA Technologies' revenues for the third fiscal 2008 quarter ended March 31 totaled $4.26 million, up 58% from $2.69 million in the year-earlier quarter, though the company still posted a net loss of $4.15 million applicable to common shares compared with a loss of $4.51 million in the 2007 period. –In reporting its first-quarter financials Tuesday, Monett, Mo.-based bank-services outsourcer Jack Henry & Associates Inc. said its remote deposit capture revenues were up 160% from year-earlier levels. Online bill-pay revenues grew 55%. Total revenues grew 11% to $187.9 million from $168.9 million a year earlier. Net income grew only 1%, however, to $26.6 million. In a statement, chief executive Jack Prim said licensing and hardware revenue “continue to be a challenge to predict,” but recurring revenues continue to increase as a percentage of total revenues.