iSignthis Ltd (ISX), a payment identity provider, has released its financial results for the second quarter of 2020 this Friday, with the company revealing how its suspension from the Australian Securities Exchange (ASX) has impacted the company.
Although ISX has felt the impact of ASX’s suspension, the company has managed to report its fifth consecutive quarter of positive operating cash flows, with iSignthis noting $1.6 million for the three month period, slightly down from $1.78 million in the previous quarter.
Receipts from customers in the second quarter dropped by around 20 percent from the first quarter of 2020 to $8.4 million, the statement filed through the ASX shows. This was due to impacts from the ASX suspension and the coronavirus pandemic.
Reduction in confidence leads to a drop in client funds
Client funds held by the payments company decreased during the quarter to sit around $82 million. This was because of a reduction in customer confidence as a result of ISX’s suspension from ASX, the company said in its statement.
How Astra’s Decentralized Compliance Layer Fills a Legal Protection GapGo to article >>
For the first half of this year, unaudited operating net profit after tax is about $660,000m the statement showed. Excluding the impairment for NSX and costs related to its legal proceedings with the Australian exchange, unaudited operating net profit after tax would have come in around $3.3 million.
Speaking to Finance Magnates John Karantzis, the CEO of iSignthis, said on the company’s financial performance: “We are delighted with our quarterly results, despite these extraordinary economic conditions. iSignthis continues to deliver results, with strong performance, revenues, and cashflows.”
“With the launch of further products this quarter, including our retail flykk® offering to complement our merchant offerings. Our electronic money services integrated with SEPA instant payments are a real growth area, together with our Probanx® CORE banking and SEPA networking software solutions.”
“The Company’s unaudited net profit before tax is some $3.3m before non cash impairments and one off costs, or some $660k NPAT actual. The coming quarter will deliver growth against our new products.”