IMGCAP(1)]
Point-of-sale terminal maker Hypercom Corp. today reported a net loss of $10.9 million for the second quarter ended June 30. That is almost twice the $5.7 million loss the company reported during the same period last year. Scottsdale, Ariz.-based Hypercom attributed the most recent loss, in part, to $2.8 million in costs associated with its transition to contract manufacturing that included $1.8 million to shut down Hypercom's company-owned manufacturing operations and $1 million for indirect costs associated with that move. Other factors include $4.4 million in costs to amortize some intangible assets and to defer interest and the cost of that interest to amortize financial warrants. Warrants give the holder the right to buy stock in a company at a specified price. Hypercom boasted of improved revenue for the quarter, which grew by 86%, to $125.4 million revenue versus $67.5 million a year ago. The bulk of the gain stems from the $120 million purchase of the e-Transactions unit of Thales S.A. earlier this year. Hypercom also says it had more sales of multilane and unattended POS terminals in North America and Northern Europe than a year ago. During a conference call with analysts yesterday, Robert Vreeland, Hypercom's interim chief financial officer, said 58% of the second-quarter revenue came from sales in Europe, the Middle East and Africa, followed by 30% from North and South America and 12% from the Asia-Pacific region.
