RDM Corp. (RC.TO), a provider of specialized software and hardware products for electronic payment processing, Friday, reported a wider loss for the second quarter, hurt mainly by a foreign exchange related loss.
The Waterloo, Ontario-based company reported second-quarter net loss of C$865 thousand, or C$0.04 per share, compared with a net loss of C$269 thousand, or C$0.01 per share, a year earlier.
RDM said it recognized a foreign exchange loss of C$563,000 in the second quarter, an increase of C$350,000 from a year earlier. The foreign exchange loss was due to the impact of a shift in exchange rates during the quarter on forward contracts held by the company as economic hedges, partially offset by a gain in U.S. denominated monetary assets.
Revenue declined to C$5.78 million from C$6.82 million in the prior year. The revenue was favorably impacted by C$1.1 million due to the strengthening of the U.S. dollar during the quarter.
Commenting on the results, Douglas Newman, president and chief executive officer of RDM Corp., said, "Overall results for the quarter were suppressed by disappointing scanner sales caused by the economic downturn."
The company's Payment Processing Services segment generated revenues of C$2.6 million, up 81% from C$1.4 million last year, driven by growth in ITMS transaction volumes and end users as well as the change in currency exchange rates.
Revenues in the Digital Imaging Products segment were down by C$1.8 million to C$2.4 million due to a reduction in scanner shipments.
The Electronic Payments Solutions segment and the Quality Assurance segment, which represented a combined 13% of total revenues in the second quarter, generated revenues of C$0.5 million and C$0.2 million, respectively, compared with C$0.8 million and C$0.4 million, respectively, in the same quarter last year.
Transaction volumes for RDM's Image & Transaction Management System, or ITMS, averaged 3.6 million items per week, up from 2.5 million items per week a year earlier. ITMS' end user locations grew to 17,000 from 15,900 in the same quarter last year.
For the six-month period, RDM reported a loss of C$2.48 million, compared with a loss of C$268 thousand in the previous year. Loss per share widened to C$0.12 from C$0.01 in the same period last year. The company's revenues for the period were C$12.87 million, lower than C$13.89 million a year ago.
"We plan to be prudent in managing our costs during this time of uncertainty, but our priority is to position the Company to capitalize on the long-term remote deposit capture opportunity, which I believe remains compelling," Newman added.
RC.TO closed Thursday's trading at C$0.98.
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