JACKSONVILLE, Fla. - Global Axcess Corp. reported a strong first quarter, with revenue improvement and steady profits.
GAXC's revenue hit $5.3 million during the quarter, up 1.4 percent from the same period last year. Profit from continuing operations came it at $2.2 million, the same amount reported for the first quarter of 2006.
The company says efforts made during the fourth quarter of last year to improve cost structure helped. In 4Q '06, GAXC negotiated and began implementing contracts with lower-cost ATM vault-cash providers; the company also outsourced ATM-cash management and monitoring.
"While these cost improvements will show cost reductions in fiscal 2007, during the first quarter of 2007, the company incurred some duplicate expenses relating to these implementations," GAXC said in a news release.
GAXC's sale of its South African subsidiary, Cash Axcess Corp., in September also helped the bottom line, the company said. The company recorded net income of approximately $101,000 during the quarter, a substantial improvement from the $878,000 net loss reported in 1Q '06.
"We are very pleased to have produced two quarters of profitability in a row," said George McQuain, GAXC's chief executive. "We continue to make progress in our turnaround strategy. Our staff remains focused and dedicated to making Global Axcess Corp. the best company in the U.S. ATM services industry."
McQuain said the company, "for the first time in many months," also added more ATMs than it lost.
"We hope that this is the beginning of a positive trend for the business," he said. "We have also seen an improvement in our ATM-uptime rates as a result of our outsourcing of ATM monitoring and cash management."
Read also, Global Axcess looks to '07 for new ATM image.
