Business
USA Technologies Reports Second Quarter Fiscal Year 2020 Results
Revenue Growth of 27.7% Year-Over-Year Total Connections Rose 16% Year-Over-Year Fiscal 2020 Revenue Expectations Increased to $175 Million to $185 Million
About this update from Cantaloupe, Inc.
[{"type":"text","content":"\nRevenue Growth of 27.7% Year-Over-Year\n\n\nTotal Connections Rose 16% Year-Over-Year \n\n\nFiscal 2020 Revenue Expectations Increased to $175 Million to $185 Million\n\n MALVERN, Pa.--(BUSINESS WIRE)--\nUSA Technologies, Inc. (OTC:USAT) (“USAT” or the “Company”), a cashless payments and software services company that provides end-to-end technology solutions for the self-service retail market, today reported results for the second quarter fiscal year 2020 ended December 31, 2019.\n\n\n“We are pleased with our fiscal second quarter results, which were marked by an acceleration in revenue growth and improvement in gross margins,” said Don Layden, USA Technologies’ Interim Chief Executive Officer. “We are in the final stages of negotiating a new transaction processing agreement, which we expect to result in first year savings of approximately $3.5 million and total cost savings over the next five years of approximately $22 million. In addition, we have completed a series of cost actions that will reduce our operating expenses by approximately $8.0 million on an annualized basis and we continue to rationalize our expenses to further optimize our cost structure.”\n\n\nSecond Quarter Fiscal 2020 Financial Highlights:\n\n\n\nRevenue of $44.1 million, increased 27.7% year-over-year\n\n\nLicense and transaction fee revenue of $35.8 million, increased 20.3% year-over-year\n\n\nEquipment revenue of $8.3 million, increased 74.6% year-over-year\n\n\n\n\nNet new connections of 40,000 bring total connections to 1,255,000\n\n\nGross margin of 29.0% increased from 27.4% in the prior year period\n\n\nLicense and transaction gross margin of 36.8% increased from 34.5% in the prior year period\n\n\nEquipment gross margin of (5.0)% increased from (17.6)% in the prior year period\n\n\n\n\nOperating loss of $(7.8) million compared to operating loss of $(10.0) million in the prior year period\n\n\nNet loss of $(8.4) million, or $(0.13) per basic share compared to net loss of $(10.4) million, or $(0.17) per basic share in the prior year period\n\n\nNon-GAAP net loss of $(4.0) million, or $(0.06) per share compared to non-GAAP net loss of $(1.6) million, or $(0.03) per share in the prior year period\n\n\nEBITDA of $(5.9) million compared to $(8.0) million in the prior year period\n\n\nAdjusted EBITDA of $(2.3) million compared to $0.0 million in the pri...