The payment processor Planet Payment Inc. is delaying the release of its financial results for the first half of 2011 as it considers a change in the way it will report future revenue.
On Sept. 29 the Long Beach, N.Y., company said it requested the Alternative Investment Market of the London Stock Exchange temporarily suspend trading its shares until it issues financial results. Planet Payment said consultations with Deloitte & Touche LLP, while preparing to report financial results under U.S. securities laws, resulted in a review of the revenue reporting process.
Planet Payment said it normally reports revenue as total billings, inclusive of amounts paid to acquiring banks and processors, and for interchange, assessments and other processing service fees. The company is considering reporting net revenue with those costs excluded.
The issue about how to report revenue ultimately would not change or affect the company's net income or losses, or reports on balance sheets, cash flow or stockholder equity statements for any period, Planet Payment said.
The company did not indicate how long the financial reporting would be delayed, saying only that "the company is working diligently to finalize and issue its financial statements for this period as soon as practicable."
Planet Payment released unofficial operating numbers "in the interest of transparency for investors and other stakeholders" despite the reporting delay to financial markets.
Citing "increases at active merchant locations," Planet Payment reported transaction processing revenue of $1.05 billion for the first half of 2011, a 77.4% increase from $592 million a year earlier.
