CardConnect Corp (CCN) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $22.08 million, or $ 0.93 a share in the quarter, against a net profit of $0.17 million, or $0.01 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $3.54 million, or $0.11 a share compared with $2.41 million or $0.08 a share, a year ago.
Revenue during the quarter surged 30.69 percent to $154.03 million from $117.86 million in the previous year period. Gross margin for the quarter expanded 93 basis points over the previous year period to 11.46 percent. Operating margin for the quarter stood at negative 12.53 percent as compared to a positive 0.66 percent for the previous year period.
Operating loss for the quarter was $19.31 million, compared with an operating income of $0.78 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $10.62 million compared with $7.11 million in the prior year period. At the same time, adjusted EBITDA margin improved 86 basis points in the quarter to 6.90 percent from 6.04 percent in the last year period.
Jeff Shanahan, president and chief executive officer of CardConnect, said, "I am very pleased to report strong results in our first quarter following the merger. In the third quarter, we generated a 33.9% increase in total bankcard volume fueled by our continued success in penetrating the integrated payments market. Our go to market strategy for integrated payments is based on the distribution of our CardPointe platform. SMB merchants access our CardPointe platform via our developer friendly APIs, mobile iOS and Android solutions, a full featured virtual terminal, and our Point to Point Encrypted (AKA, P2PE) device solutions. It’s at the forefront of our ability to differentiate CardConnect as a leading provider of value-added merchant electronic payment and related services. We are now focused on leveraging our new corporate structure to accelerate growth and expand the CardConnect franchise. Our focus will continue to be to reinvest in our differentiated technology to take advantage of the trend in the market that places greater value on integrated payment services and security. We are pleased with our third quarter results and look forward to life as a public company."
For financial year 2016, CardConnect Corp expects revenue to be in the range of $588 million to $603 million. It expects adjusted revenue to be in the range of $152 million to $156 million for the same period.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
