PONTE VEDRA BEACH, Fla. - Global Axcess Corp. pulled $5.2 million in revenue during the fourth quarter of 2006, a 4.5 percent increase from the same period last year. Net income for the quarter came in at $14,076, up approximately $785,000 from 4Q '05. The company attributed that increase to cost reductions, new management and unrealized fee income that accumulated throughout the year. (Read also, Global Axcess looks to '07 for new ATM image.)
For the year, GAXC posted a net loss of nearly $4.9 million, compared to a net loss of $723,000 in 2005. The increased loss in 2006 was attributed to impairment charges related to software, assets held for sale, ATMs restructuring and lawsuits. The company also incurred approximately $400,000 in additional legal fees.
"I'm proud of the fact that, in the span of the fourth quarter, we have made a great deal of progress in returning Global Axcess Corp to profitability," said George McQuain, GAXC's chief executive. "We were able to substantially execute a cost-reduction plan designed to stabilize the company's financials."
McQuain added the company is still working to reduce costs and turn unprofitable ATMs off, as well as streamline internal processes with management software.
"While reducing costs, we still need to drive revenue growth and improve customer retention in our merchant and distributor segments," he said. "We are starting to see traction in these areas, but we still have more to do. We are also exploring services that we can sell to our existing customers through our existing sales channels, thus negating the expense of building new products internally."
During 2006, GAXC divested Cash Axcess Corp., shut down the switching platform used by EFT Integration Inc. and outsourced all processing activities. The company converted ATM processing to Elan and cut its temporary personnel. In May, GAXC expects to relocate its offices to less expensive space.
