USA Technologies Fiscal 2008 Revenue Exceeds $16.1 Million
Revenues Grow 76% Year-Over-Year and Gross Profit More than Doubles
MALVERN, PA, September 24, 2008 -- USA Technologies (NASDAQ: USAT) announced today its financial results for the fiscal year ended June 30, 2008, including revenues in excess of $16.1 million.
The $16.1 million in revenue for fiscal year 2008 represents an increase of 76%, or $6.9 million, over the $9.2 million reported for fiscal year 2007. Gross profit more than doubled to $3.4 million in fiscal 2008 from $1.3 million the preceding year. The net loss fell to $16.4 million in fiscal 2008, and diluted loss per share was $1.21, compared to fiscal year 2007 net loss of $17.7 million, and diluted loss per share of $2.13. Weighted average shares outstanding rose in fiscal 2008 to 14.1 million from 8.7 million in fiscal 2007.
George R. Jensen, Jr., Chairman and Chief Executive Officer, USA Technologies, Inc., stated, "We had a strong finish in our fourth quarter, with a record $5M in revenue. We are very pleased with the top line growth we posted this year. In each quarter we set revenue records, resulting in a record year."
The Company reported an increase of 190% in transaction volume and 62% in dollars processed. During the fiscal year ended June 30, 2008, USAT processed approximately 11.3 million wireless, small ticket, cashless transactions totaling more than $34.4 million in value on behalf of its customers.
Recent USA Technologies business and operational highlights:
The Company more than doubled the number of connections to USALive: Connections for the period ended June 30, 2008 have more than doubled from approximately 15,000 a year ago to more than 38,000.
The ePort® G7 Launched in March 2008: The revolutionary G7 is breaking all records following its launch at the NAMA National Vending Expo. With added features and reduced production costs, the ePort G7 is all-in-one technology that installs quickly in vending machines to accept traditional magnetic stripe credit cards as well as contactless credit cards with tap-and-go technology.
New, exclusive ePort agreement: USA Technologies recently closed a three-year ePort agreement with one of the largest soft drink bottlers in America. Under the terms of an agreement reached earlier this year, the Bottler shall utilize USAT as its sole and exclusive supplier of all credit-debit card vending systems, as well as, all card processing and data services.
The nation's two largest vending and food service companies added VendingMiser to their Sustainability Programs: As part of corporate wide sustainability programs, these two Companies are distributing VendingMiser to their combined customer base of more than 300,000 vending machines across the country.
First to launch cellular phone vending payment pilot with Nokia: USA Technologies is working with major cellular phone companies to introduce Near Field Communications (NFC) to vending, giving consumers the ability to make purchases from vending machines with cellular phones. The first pilot program is underway with Nokia at Gonzaga University in Washington State.
EnergyMiser Rebate Program grows to nearly 50 utilities: Energy utilities offering EnergyMiser devices free or with rebates have doubled over the past 12 months to nearly 50, with another four utilities offering turnkey programs.
Mr. Jensen also said, "There are two trends in today's world that are working in USA Technologies' favor and neither shows sign of letting up. First, the increasing cost of energy around the world which our EnergyMiser product line addresses directly. Second, cashless transactions are growing in popularity, and an entire generation of Americans feels more comfortable with a credit or debit card than they do with currency and coins. We enable the vending machine industry to go cashless, and its helping them grow their businesses and increase customer satisfaction."
Statement under the Private Securities Litigation Reform Act:
With the exception of the historical information contained in this release, the matters described herein contain forward-looking statements that involve risk and uncertainties that may individually or mutually impact the matters herein described, including but not limited to product acceptance, the ability to continually obtained increased orders of its products, the ability to meet installation goals, economic, competitive, governmental impacts, whether its pending patents will be granted or defendable; validity of intellectual property and patents of USA, the ability of USA to license its patents, the ability of USA to commercialize its developmental products, technological and/or other factors, which could cause actual results or revenues to differ materially from those contemplated by these statements.
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