Free 7-day Trial
All Articles and Columns »

LML Payment Systems Inc. Reports Operating Results (10-Q)

February 14, 2011 | About:
10qk

10qk

18 followers
LML Payment Systems Inc. (LMLP) filed Quarterly Report for the period ended 2010-12-31.

Lml Payment Systems Inc. has a market cap of $127.81 million; its shares were traded at around $4.69 with a P/E ratio of 27.59 and P/S ratio of 8.62. Hedge Fund Gurus that owns LMLP: Jim Simons of Renaissance Technologies LLC, Jim Simons of Renaissance Technologies LLC.
This is the annual revenues and earnings per share of LMLP over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of LMLP.


Highlight of Business Operations:

Revenue pertaining to our TPP segment consists of one-time set-up fees, monthly gateway fees, transaction fees and software customization fees. TPP segment revenue for the three months ended December 31, 2010 was approximately $3,497,000, an increase of approximately $822,000 or approximately 30.7% from TPP segment revenue of approximately $2,675,000 for the three months ended December 31, 2009. TPP segment revenue originating in Canadian dollars was approximately $3,541,000CAD for the three months ended December 31, 2010 compared to approximately $2,827,000CAD for the three months ended December 31, 2009, an increase of approximately $714,000CAD or approximately 25.3%. The increase in TPP segment revenue was primarily attributable to an increase in our merchant base of approximately 18.7%. Transaction fees for the three months ended December 31, 2010 were approximately $2,763,000 compared to approximately $2,042,000 for the three months ended December 31, 2009, an increase of approximately $721,000 or approximately 35.3%. The amortized portion of one-time set-up fees recognized was approximately $46,000 for the three months ended December 31, 2010 compared to approximately $46,000 for the three months ended December 31, 2009. Monthly gateway fees for the three months ended December 31, 2010 were approximately $402,000 compared to approximately $318,000 for the three months ended December 31, 2009, an increase of approximately $84,000 or approximately 26.4%.

Cost of revenue increased from approximately $2,330,000 for the three months ended December 31, 2009, to approximately $5,018,000 for the three months ended December 31, 2010, an increase of approximately $2,688,000 or approximately 115.4%. The increase was primarily attributable to an increase in our IPL segment cost of revenue of approximately $2,175,000 from approximately $447,000 for the three months ended December 31, 2009 to approximately $2,622,000 for the three months ended December 31, 2010 and partially attributable to an increase in our TPP segment cost of revenue of approximately $478,000 or approximately 32.1% from approximately $1,489,000 for the three months ended December 31, 2009 to approximately $1,967,000 for the three months ended December 31, 2010. The increase in IPL segment cost of revenue was primarily attributable to the costs incurred in entering into the Third Quarter License Agreements with five of the defendants in the Patent Litigation during the three months ended December 31, 2010. The increase in TPP segment cost of revenue was primarily attributable to an increase in our transaction processing of approximately 29.7% which coincides with increases in transaction processing revenue for the three months ended December 31, 2010 as compared to the three months ended December 31, 2009.

Revenue pertaining to our TPP segment consists of one-time set-up fees, monthly gateway fees, transaction fees and software customization fees. TPP segment revenue for the nine months ended December 31, 2010 was approximately $9,167,000 as compared to TPP segment revenue of approximately $7,060,000 for the nine months ended December 31, 2009, an increase of approximately $2,107,000 or approximately 29.8%. The increase in TPP segment revenue was primarily attributable to an increase in transaction fees resulting from an increase in our merchant base and partially attributable to a strengthening Canadian dollar in relation to the U.S. dollar which increased approximately 7% from the prior fiscal nine month period. Since a significant amount of our TPP segment originates in Canadian dollars, the conversion of this revenue to U.S. dollars was at an increased exchange rate when compared to the prior fiscal nine month period conversion. TPP segment revenue originating in Canadian dollars was approximately $9,404,000CAD for the nine months ended December 31, 2010 compared to $7,789,000CAD for the nine months ended December 31, 2009, an increase of approximately $1,615,000CAD or approximately 20.7%. Transaction fees for the nine months ended December 31, 2010 were approximately $7,402,000 compared to transaction fees of approximately $5,638,000 for the nine months ended December 31, 2009, an increase of approximately $1,764,000 or approximately 31.3%. The amortized portion of one-time set-up fees recognized was approximately $145,000 for the nine months ended December 31, 2010 compared to one-time set-up fees for the nine months ended December 31, 2009 of approximately $121,000, an increase of approximately $24,000 or approximately 19.8%. Monthly gateway fees for the nine months ended December 31, 2010 were approximately $1,145,000 compared to monthly gateway fees for the nine months ended December 31, 2009 of approximately $874,000, an increase of approximately $271,000 or approximately 31%.

Cost of revenue increased from approximately $5,671,000 for the nine months ended December 31, 2009, to approximately $10,759,000 for the nine months ended December 31, 2010, an increase of approximately $5,088,000 or approximately 89.7%. This increase was primarily attributable to an increase in our IPL segment cost of revenue of approximately $3,597,000 from approximately $447,000 for the nine months ended December 31, 2009 to approximately $4,044,000 for the nine months ended December 31, 2010. The increase in IPL segment cost of revenue was primarily attributable to the costs incurred in entering into the License Agreements with eight of the defendants in the Patent Litigation during the nine months ended December 31, 2010. TPP segment cost of revenue of increased approximately $1,373,000 or approximately 34%, from approximately $4,033,000 for the nine months ended December 31, 2009 to approximately $5,406,000 for the nine months ended December 31, 2010. The increase in TPP segment cost of revenue was primarily attributable to an increase in transaction costs of approximately 36.3% consistent with the increase in transaction fee revenue and partially attributable to a strengthening Canadian dollar in relation to the U.S. dollar which increased approximately 7% from the prior nine month period. Since a significant amount of our TPP segment cost of revenue originates in Canadian dollars, the conversion of these costs to U.S. dollars was at an increased exchange rate when compared to the prior fiscal nine month period conversion. TPP segment costs of revenue originating in Canadian dollars was approximately $5,547,000CAD for the nine months ended December 31, 2010 compared to $4,448,000CAD for the nine months ended December 31, 2009, an increase of approximately $1,099,000CAD or approximately 24.7%. CP/SL segment cost of revenue was approximately $1,207,000 for the nine months ended December 31, 2010 as compared to approximately $1,079,000 for the nine months ended December 31, 2009, an increase in CP/SL segment cost of revenue of approximately $128,000 or approximately 11.9%.

General and administrative expenses increased to approximately $3,346,000 from approximately $3,084,000 for the nine months ended December 31, 2010 and 2009, respectively, an increase of approximately $262,000 or approximately 8.5%. Included in general and administrative expenses for the nine months ended December 31, 2010 are TPP segment expenses of approximately $730,000 as compared to approximately $629,000 for the nine months ended December 31, 2009, an increase of approximately $101,000 or approximately 16.1%. CP/SL segment expenses increased to approximately $425,000 from approximately $362,000 for the nine months ended December 31, 2010 and 2009, respectively, an increase of approximately $63,000 or approximately 17.4%.The increase in the TPP and CP/SL segment general and administrative expenses is primarily attributable to an increase of approximately $71,000 in legal fees primarily pertaining to the two patent infringement complaints filed against our subsidiaries, LML Payment Systems Corp. and Beanstream Internet Commerce Inc. in April, 2009. Also included in general and administrative expenses are stock-based compensation expenses of approximately $692,000 for the nine months ended December 31, 2010 compared to approximately $781,000 for the nine months ended December 31, 2009, a decrease of approximately $89,000 or approximately 11.4%.

Our liquidity and financial position consisted of approximately $10,979,000 in working capital as of December 31, 2010 compared to approximately $5,601,000 in working capital as of March 31, 2010, an increase of approximately $5,378,000. The increase in working capital was primarily attributable to an increase in cash and cash equivalents of approximately $5,847,000 resulting primarily from compensation received from license agreements entered into during the nine months ended December 31, 2010. Cash provided by operating activities was approximately $6,612,000 for the nine months ended December 31, 2010, as compared to cash provided by operating activities of approximately $175,000 for the nine months ended December 31, 2009, an increase in cash generated by operating activities of approximately $6,437,000. The increase in cash provided by operating activities was primarily attributable to an increase in cash received from license agreements of approximately $5,847,000 for the nine months ended December 31, 2010. Cash used in investing activities was approximately $45,000 for the nine months ended December 31, 2010 as compared to approximately $86,000 for the nine months ended December 31, 2009, a decrease in cash used in investing activities of approximately $41,000. The decrease in cash used in investing activities was primarily attributable to a decrease in acquisition of property and equipment of approximately $45,000 for the nine months ended December 31, 2010 as compared to the nine months ended December 31, 2009. Cash provided by financing activities was approximately $59,000 for the nine months ended DRead the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 5.0/5 (3 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide