News

GAXC reports net losses for 2Q '06

August 14, 2006

PONTE VEDRA BEACH, Fla. - Global Axcess Corp. reported increases in revenue and profit for the second quarter of 2006, which ended June 30. Revenue from continuing operations hit $5.5 million, up 10 percent from the $5 million during the same period last year. Profit from continuing operations came in at $2.4 million, up 20 percent from $2 million last year.

The company attributed the increases to an increased number of transacting ATMs acquired in 2005.

But GAXC continued to operate at a net loss, a trend that has spiraled downward since the second quarter of 2005, when the company reported net losses of $42,084. For 2Q '06, GAXC reported a net loss of $373,100, negative 2 cents per share, about eight times greater than losses reported last year.

Contributing to the loss were increased operating and one-time expenses, the company said.

"While we are pleased with our revenue growth, we continue to focus on returning to profitability," said Michael Dodak, GAXC's chief executive. "Further, we continue to review strategic alternatives for the company with our advisors at Raymond James."

Operating expenses increased to $2.5 million for the second quarter, up from the $1.6 million for the same period of 2005. And GAXC incurred non-recurring and one-time expenses - legal fees associated with litigation, increased professional fees associated with 2005 financial restatements as well as an increase in bad debt reserves - of $280,000 during the quarter. Excluding those non-recurring and one-time expenses, the net loss would have been $93,100.