PONTE VEDRA, Fla. - Global Axcess Corp. reported revenue of $5.07 million for the third quarter, ended Sept. 30, a 59 percent increase from the same period last year.
Net income for the quarter was down 45 percent, from $152,359 in '04 to $84,364.
Contributing to the net-income loss was Global Axcess' wholly owned subsidiary, Electronic Payment & Transfer Corp., which the company sold this quarter for $1.54 million. That subsidiary incurred losses totaling $74,947 during the third quarter. For the first three months ended Sept. 30, the subsidiary incurred losses of $309,256.
"We believe that there are several reasons why our earnings did not match expectations in the third quarter," said Michael Dodak, Global Axcess' chief executive. "One, we had higher costs of vault cash for our ATMs, due to the increase in interest rates, and slower growth in our Branded Cash Program, due to delays involving sizable deployments."
"Program changes have been implemented to change this situation beginning in the fourth quarter," he added. "And, third, GAXC has also reduced corporate overhead through the elimination of 11 FTE employees as of the beginning of the fourth quarter."
Revenue for the first nine months is $15.2 million, up 68 percent from the same period last year. Net income for the first nine months is down 8 percent, from $608,651 to $559,176.
"We are exploring strategic alternatives for our non-core business activities, beyond the sale of Electronic Payment and Transfer Corporation, which will increase earnings for 2006, thus enhancing long-term shareholder value," Dodak said.
