Jacksonville, Fla.-based independent ATM deployer Global Axcess Corp. (dba Nationwide Money Services) reported a profitable second quarter, after revenue and net losses during the first quarter.
Net income for Q2 was up 24 percent, from $450,290 (2 cents per share) in Q2 '08 to $557,031 (3 cents per share) in 2Q '09, despite a 7-percent dip in revenue from quarter to quarter. Revenue for Q2 '09 came in at $5.4 million, compared with revenue of $5.8 million in Q2 '08.
For the year, revenue is down 5 percent, from $11.4 million in '08 to $10.8 million, while net income is up 16 percent for the year, from $562,445 (3 cents per share) to $653,793 (3 cents per share).
GAXC chief executive George McQuain says the company's net improvements will allow GAXC to continue its focus on delving into new business opportunities, including the placement of DVD-rental kiosks:
 | Management continues to invest in our sales and marketing capabilities, with the goal of expanding our network. Simultaneously, we are focused on adding additional services to accelerate our growth. We continue to focus on leveraging our ability to deploy, manage, maintain and process transactions from a wider range of self-service kiosks, beyond the traditional ATM, and our first application of self-service kiosks will be DVD-rental kiosks. In fact, in an effort to further accelerate this program, we have expanded our pilot program for DVD-rental kiosks from nine to 24 locations. In addition, we have delivered 20 proposals for ATM deployments, up from five in the year-ago quarter, and we expect to kick off an aggressive marketing program that will include direct mail, trade shows, a redesign of our ATM Web site, as well as a continuation of our aggressive calling efforts. All of this is based upon recently completed market research that compared our offerings to our competitors and very strongly highlighted our competitive advantages in the market. |  |
GAXC attributes its decline in revenue to the loss of a high-transacting client. But GAXC made up for the loss with the addition of two new ATM placement deals and an expanded ATM deal with an existing client.
GAXC, in a news release, says it added 126 new ATMs during the quarter:
| While these agreements did not materially benefit the second quarter, they are expected to contribute to the company's financial results in the third quarter. | |
McQuain says restructuring and stronger investments in sales have benefited the company since Q1:
| We believe these efforts, coupled with the key re-staffing we've made to the sales organization, will help us grow our revenues. This will allow us to increase our free cash flow and help us to deliver enhanced shareholder value. | |
