MALVERN, PA -- USA Technologies Inc. said it reached two important milestones during its second quarter of fiscal 2011: generating positive quarterly EBITDA and exceeding 100,000 devices connected to its network.
For the period ended Dec. 31, 2010, USAT reported that total revenue increased 60% to $6 million, compared with $3.8 million in the second quarter of the prior year. Revenue from recurring license and transaction fees increased 81% to $3.8 million, up from $2.1 million for the year-ago quarter.
Gross profit for the quarter was $2.5 million, or 41% of revenue, and was up 146% from $1 million, or 27% of revenue, in last year's second quarter. Earnings before interest, taxes, depreciation and amortization (EBITDA) was $456,000 for the quarter, the company's first positive EBITDA quarter since listing on Nasdaq. In the second fiscal quarter of the prior year the company reported an EBITDA loss of $3.8 million.
During the second quarter the company said it increased the number of devices connected to its network by 73%, bringing the total number to approximately 109,000, compared with 63,000 as of Dec. 31, 2009.
The number of cashless transactions processed during the quarter increased to 15.9 million, and processing volume reached $26.2 million, representing increases of 94% and 75%, respectively.
Customers on the company's USALive Network reportedly rose 81% compared with a year ago, with approximately 200 new customers added during the past three months, bringing the total number of such customers to more than 1,400 as of Dec. 31, 2010. By comparison, in the second quarter of the last fiscal year, the company said it added 175 new customers to end the quarter with approximately 775 customers.
"During the quarter, we added over 21,000 new connections to our network," said USAT chairman and chief executive George Jensen. "This widening base of connected devices not only provides incremental revenue, but we believe provides our small-ticket, unattended point-of-sale target markets with the added validation it has been awaiting."