News

Global Axcess cites improved results, but company reports a net loss

May 3, 2011

Global Axcess Corp. today reported improved first-quarter results based on higher revenues and a narrower operating loss, but the independent ATM deployer (IAD) recorded a net loss during the three-month period, which ended March 31.

The Jacksonville, Fla.-based IAD and DVD kiosk operator recorded a net loss of $544,000, or $0.02 per basic diluted share, compared with a net income of $319,000, or $0.02 per basic share, for the same three-month period last year. Global Axcess reported a first-quarter operating loss of $260,000 compared with an operating loss of $439,899 for the same period in 2010.

Company revenues reached $8 million, up 47.8 percent compared with $5.4 million in 2010's first quarter.

Global Axcess' ATM services recorded a first quarter net income of $933,125 compared with $1.04 million in 2010. However, ATM Services reported improved revenues of $5.9 million in the first quarter compared with $5.3 million last year.

The company's DVD Services reported a wider first-quarter net loss compared with the same three-month period in 2010 The unit recorded a loss of $230,551 compared with a loss of $125,491 in last year's first quarter. First-quarter revenues for DVD Services dramatically improved to $2 million compared with $43,000 in last year's first quarter.

Michael I. Connelly, co-CEO, said the results show the company is heading in the right direction.

"We are showing improvement in operating and financial results as we optimize the business," Connelly said. "Our efforts are reflected in the increased revenues and expanding margins as compared from the fourth quarter of 2010. We narrowed the operating loss considerably from last quarter and our key metrics are trending in the right direction. We have set the foundation for continued improvements as we move through 2011."

Global Axcess owns, manages or operates 5,300 ATMs and DVD kiosks in 43 states.