How USA Technologies, Inc. (NASDAQ: USAT) Fared In F3Q2016


USA Technologies, Inc. (NASDAQ: USAT) continues ride the wave of cashless transaction market and management is upbeat and believe the company’s best times are still ahead. For its F3Q2016, the company posted significant growth in revenue and connections, driven in part by secular transition to electronic payments and the company’s differentiated solutions.

What transpired in F3Q2016?

For the quarter ended March 31, 2016, USA Technologies posted revenue $20.4 million, suggesting a growth of 33% over the same period last year. The company also made more connections during the quarter at 32,000 net connections compared to 14,000 net connections in the corresponding quarter of 2015.

USA Technologies, Inc. (NASDAQ: USAT) said ePort service connections stood at 401,000 at the end of its F3Q2016, with 6,000 new connections being credited to VendScreen, the asset that USA recently acquired. Connections to ePort rose 33% YoY.

Cash from operations for USA Technologies, Inc. (NASDAQ: USAT)

USA Technologies posted cash from operating activities of $4.3 million, marking the fifth quarter in a row that the company has posted positive operating cash flow. However, the company still ended up with a net loss of $5.4 million in the quarter. Nevertheless, management clarified that the net loss of $5.4 million came as a result of the $4.8 million in non-cash expense related to fair value warrant liability. Therefore, non-GAAP net loss was the quarter was only $87,000 or $0.01 a share.

Financial for the nine months to March 31

For the nine months to March 31, 2016, USA Technologies, Inc. (NASDAQ:USAT) generated revenue of $55.46 million, sharply above $40.4 million in a similar period a year ago. Total fresh connections at the end of the latest nine months period was also higher at 401,000 compared to 302,000 in the year ago period.

F2016 outlook

For fiscal 2016, USA Technologies, Inc. (NASDAQ: USAT) is hoping for revenue in the band of $76 to $78 million. Net new connections for the fiscal year are guided in the range of 93,000 to $95,000. Among other things, management is betting on QuickStart to fuel growth in fiscal 2016 and beyond because the program is popular with customers. In particular, management expects QuickStart to fuel improvement of cash flow from operating activities.


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