Tier Technologies, Inc Posts Declining Revenues, Bigger Loss in Third Quarter Fiscal 2011 Results

Tier Technologies, Inc. (Nasdaq: TIER) announced its third quarter fiscal 2011 results after market close Tuesday.

The Reston-based company that provides electronic payment solutions said revenues dropped 2.6%  to $38.44 Million in the third quarter ended June 30, 2011 versus $39.45 Million in 2010.

A net loss of $1.43 Million ($-0.08 per diluted share) was much higher than the $400,000 ($-0.01 per diluted share) loss in the prior quarter 2010.

As of June 30, 2011, Tier Technologies had cash and cash equivalents of $36.4 Million, also down from $45.8 Million as of September 30 of 2010.

"I have been with Tier for almost a year, and as I look back on the challenges we've faced and the changes we've made, I am more excited about our prospects than I was a year ago," declared Alex. P. Hart, President and Chief Executive Officer of Tier Technologies. "I am disappointed that our financial performance has not improved as rapidly as I initially expected," Hart persisted, "but I am confident we are making the right moves and are positioned for a stronger fiscal year 2012. I feel very good about the team we've assembled, the overall health of the business and the market segments we serve, and the improvements we've made to the way that we build, sell, implement, and support the payment products and services we provide to the roughly 4,600 government, higher education, and utility clients we work with today. There is still a lot of work to be done to execute on the strategy and fulfill our potential, but I believe that we are now positioned for success."

Tier Technologies entered into a $8.3 Million agreement to upgrade its technology infrastructure, the improvements began this month.

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