USA Technologies Inc. reported unaudited consolidated earnings results for the second quarter and six months ended December 31, 2012. For the quarter, the company reported total revenues of $8,884,321 against $6,881,598 for the same period a year ago. Revenue growth was fueled by a 33% growth in license and transaction fees and a 14% increase in equipment sales compared to the second quarter of fiscal 2012. Operating income was $567,650 against operating loss of $1,937,034 for the same period a year ago. Income before provision for income taxes was $160,660 against loss before provision for income taxes of $1,821,061 for the same period a year ago. Net income applicable to common shares was $153,758 against net loss applicable to common shares of $1,821,061 for the same period a year ago. Net cash provided by operating activities was $1,922,175 against net cash used in operating activities of $2,527,097 for the same period a year ago. Purchase of property and equipment was $47,881 against $313,597 for the same period a year ago. Non-GAAP net income was $557,393 or $0.02 per diluted share against non-GAAP net loss of $997,820 or $0.03 per diluted share for the same period a year ago. Non-GAAP operating income was $567,650 against non-GAAP operating loss of $962,034 for the same period a year ago. Adjusted EBITDA was $1,752,721 against Adjusted LBITDA of $938,400 for the same period a year ago.

For the six months, the company reported total revenues of $17,274,599 against $13,587,346 for the same period a year ago. Operating income was $153,418 against operating loss of $3,759,300 for the same period a year ago. Income before provision for income taxes was $206,720 against loss before provision for income taxes of $1,900,014 for the same period a year ago. Net loss applicable to common shares was $139,329 against $2,232,240 for the same period a year ago. Net cash provided by operating activities was $2,600,185 against net cash used in operating activities of $3,023,886 for the same period a year ago. Purchase of property and equipment was $50,278 against $373,945 for the same period a year ago.

The company provided earnings guidance for the full fiscal year 2013. For the year, the company committed to achieving over 30% revenue growth for the year, as well as cash generated from operations in the $4-$5 million range. In addition, given the improved financial performance in the second quarter and the recurring nature of the majority of revenues, the company believes non-GAAP net income is sustainable; therefore, the company also expects to achieve non-GAAP net income for the full fiscal year as well.