Net 1 UEPS Technologies Inc. (UEPS, Financial) filed Quarterly Report for the period ended 2012-12-31.
Net 1 Ueps Technologies, Inc. has a market cap of $252.627 million; its shares were traded at around $5.57 with a P/E ratio of 27.5482 and P/S ratio of 0.5984.
Options to purchase 11,560,863 shares of the Companys common stock at prices ranging from $6.59 to $24.46 per share were outstanding during the three and six months ended December 31, 2012, but have not been included in the computation of diluted earnings per share because the options exercise prices were greater than the average market price of the Companys common stock during the period. The options, which expire at various dates through August 22, 2022, and include the 8,955,000 equity instrument issued pursuant to BBBEE transaction, remained outstanding as of December 31, 2012.
For the three and six months ended December 31, 2012, the tax charge was calculated using the expected effective tax rate for the year. The Companys effective tax rate for the three and six months ended December 31, 2012, was 53.6% and 42.2%, respectively, and was higher than the South African statutory rate primarily as a result of non-deductible expenses (including interest expense related to the Companys long-term Korean borrowings and stock-based compensation charges) and South African dividend withholding taxes. The Companys effective tax rate for the three and six months ended December 31, 2011, was -27.3% and 10.3%, respectively, and was lower than the South African statutory rate as a result of a change in South African tax law which resulted in a net deferred taxation benefit and, related to the six months only, a non-taxable profit on liquidation of SmartSwitch Nigeria, which was partially offset by non-deductible expenses (including interest expense related to the Companys long-term Korean borrowings and stock-based compensation charges) and the creation of a valuation allowance.
The new pricing, effective from April 1, 2012, reduced the average monthly revenue per smart card from ZAR5.50 to ZAR4.00 and the operating income margin from 45% to 28%. Operating income margin from providing smart card accounts for the second quarter of fiscal 2013 and 2012 was 28% and 45%, respectively.
Total fiscal 2013 tax expense was $6.7 million (ZAR 56.7 million) compared to $5.2 million (ZAR 40.5 million) in fiscal 2012. Our fiscal 2012 tax expense includes $18.3 million related to a change in South African tax law and the creation of a valuation allowance of $8.2 million related to foreign tax credits. Our effective tax rate for the six months ended December 31, 2012, was 42.2% and was higher than the South African statutory rate primarily as a result of non-deductible expenses (including interest expense related to our long-term Korean borrowings and stock-based compensation charges) and South African dividend withholding taxes. Our effective tax rate for the six months ended December 31, 2011, was 10.3% and was lower than the South African statutory rate as a result of a change in South African tax law which resulted in a net deferred taxation benefit and a non-taxable profit on liquidation of SmartSwitch Nigeria, which was partially offset by non-deductible expenses (including interest expense related to our long-term Korean borrowings and stock-based compensation charges) and the creation of a valuation allowance.
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Net 1 Ueps Technologies, Inc. has a market cap of $252.627 million; its shares were traded at around $5.57 with a P/E ratio of 27.5482 and P/S ratio of 0.5984.
Highlight of Business Operations:
Pro forma results of operations have not been presented because the effect of the SmartSwitch and Pbel acquisitions, individually and in the aggregate, were not material to the Company. During the three and six months ended December 31, 2012, the Company incurred acquisition-related expenditure of $0.03 million and $0.1 million, respectively, related to these acquisitions. Since the closing of the SmartSwitch Botswana acquisition, it has contributed revenue and generated a net income of $0.1 million and $0.01 million, respectively. Since the closing of the Pbel acquisition, it has contributed revenue and incurred a net loss, after acquired intangible asset amortization, net of taxation, of $0.3 million and $0.2 million, respectively, for the three months ended December 31, 2012, and revenue and net loss of $0.4 million and $0.2 million, respectively, for the six months ended December 31, 2012.Options to purchase 11,560,863 shares of the Companys common stock at prices ranging from $6.59 to $24.46 per share were outstanding during the three and six months ended December 31, 2012, but have not been included in the computation of diluted earnings per share because the options exercise prices were greater than the average market price of the Companys common stock during the period. The options, which expire at various dates through August 22, 2022, and include the 8,955,000 equity instrument issued pursuant to BBBEE transaction, remained outstanding as of December 31, 2012.
For the three and six months ended December 31, 2012, the tax charge was calculated using the expected effective tax rate for the year. The Companys effective tax rate for the three and six months ended December 31, 2012, was 53.6% and 42.2%, respectively, and was higher than the South African statutory rate primarily as a result of non-deductible expenses (including interest expense related to the Companys long-term Korean borrowings and stock-based compensation charges) and South African dividend withholding taxes. The Companys effective tax rate for the three and six months ended December 31, 2011, was -27.3% and 10.3%, respectively, and was lower than the South African statutory rate as a result of a change in South African tax law which resulted in a net deferred taxation benefit and, related to the six months only, a non-taxable profit on liquidation of SmartSwitch Nigeria, which was partially offset by non-deductible expenses (including interest expense related to the Companys long-term Korean borrowings and stock-based compensation charges) and the creation of a valuation allowance.
The new pricing, effective from April 1, 2012, reduced the average monthly revenue per smart card from ZAR5.50 to ZAR4.00 and the operating income margin from 45% to 28%. Operating income margin from providing smart card accounts for the second quarter of fiscal 2013 and 2012 was 28% and 45%, respectively.
Total fiscal 2013 tax expense was $6.7 million (ZAR 56.7 million) compared to $5.2 million (ZAR 40.5 million) in fiscal 2012. Our fiscal 2012 tax expense includes $18.3 million related to a change in South African tax law and the creation of a valuation allowance of $8.2 million related to foreign tax credits. Our effective tax rate for the six months ended December 31, 2012, was 42.2% and was higher than the South African statutory rate primarily as a result of non-deductible expenses (including interest expense related to our long-term Korean borrowings and stock-based compensation charges) and South African dividend withholding taxes. Our effective tax rate for the six months ended December 31, 2011, was 10.3% and was lower than the South African statutory rate as a result of a change in South African tax law which resulted in a net deferred taxation benefit and a non-taxable profit on liquidation of SmartSwitch Nigeria, which was partially offset by non-deductible expenses (including interest expense related to our long-term Korean borrowings and stock-based compensation charges) and the creation of a valuation allowance.
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