MALVERN, PA -- USA Technologies Inc. said it expects to realize net income for the first time in company history when it reports its final second-quarter results.
In its preliminary results for the second quarter ended Dec. 31, 2012, the cashless technology and telemetry provider expects total revenues to be in the range of $8.8 million to $8.9 million, a 29% increase over the same period in 2011.
Recurring revenues, comprised primarily of ePort Connect license and processing fees, are expected to represent approximately 83% of total revenues for the second quarter.
Total net connections added during the quarter are forecast to be approximately 12,000, an increase of 71% from the same period a year ago. These connections would reportedly bring USAT's total connected base to 186,000, a 37% increase from the comparable prior-year period.
"The USAT team has played a pivotal role in bringing cashless payment to the unattended market and this diligence is now paying off," said USAT chairman and chief executive Stephen P. Herbert.
He credited the company for taking "aggressive actions" a year ago to strengthen revenue, improve margins and reduce expenses to accelerate its path to profitability.
"Given these results and the recurring nature of the majority of our revenues, we believe non-GAAP net income is sustainable; therefore, as we have previously stated, we expect to achieve non-GAAP net income for the full fiscal year as well," concluded Herbert.