The customer base and revenues are up for Malvern-based USA Technologies, Inc., which recently announced its financials for the quarter ending March 31, 2014.

The company is a leader of wireless, cashless payment and M2M telemetry solutions for small-ticket, self-serve retailing industries.

USAT announced net income of $26.9 million; net earnings per common share of $0.75; total revenues of $10.4 million – up 16 percent from the prior year; license and transaction fee revenue of $9 million, up 19 percent over the prior year; adjusted EBITDA of $1.8 million, up 9 percent from the prior year.

In addition, USAT achieved a record number of new connections to its cashless payment and M2M telemetry service, ePort Connect®, approximately 22,000, in the third quarter. Net new connections for the third quarter totaled approximately 20,000, a 100 percent increase from 10,000 net new connections for the third quarter of the prior year. Total connections to USAT’s cashless payment and M2M telemetry service, ePort Connect®, were 244,000 as of March 31, 2014, a 24 percent increase from March 31, 2013.

USAT also reported rapid growth in the number of customers using its ePort Connect service across various segments of the self-serve retail market including vending, commercial laundry, amusement/arcade, taxi and transportation, kiosk and mobile applications. During the third quarter, USAT added 575 new customers to its ePort Connect service, for 6,650 total customers as of March 31, 2014. For the three years ended March 31, 2014, the ePort Connect customer base has grown by a compound annual growth rate of 58 percent.

Stephen Herbert, USAT’s chairman and chief executive officer, said the results reflect assertive strategies directed toward growing market share, cashless adoption and long-term customer relationships for USAT in an emerging market.

“We are also looking forward to the additional license and transaction fee revenues associated with a number of new connections achieved through March that had not fully materialized as of quarter end—all factors that we believe bode well for future revenue growth and cash generation,” he said.

“We were particularly excited to be able to recognize a deferred tax asset related to our net loss carryovers in the third quarter,” Herbert said.” This is another important milestone for USAT that we believe speaks to, among other things, the growing strength of our recurring revenue model and the strategies we have put in place to attract new customers and connections to our service.”

USA Technologies has been granted 87 patents and has agreements with Verizon, Visa, Elavon and customers such as Compass, Crane, AMI Entertainment and others. The full financial report is here: http://investor.usatech.com/releasedetail.cfm?ReleaseID=847429

Links: www.usatech.com.