Tech firm earnings up 116% in 2Q
(8/13/2010) (From New Haven Register)
NEW HAVEN — Higher One Holdings Inc. Thursday reported second-quarter revenue of $26.9 million, up 116 percent from $12.5 million during the same period in 2009.
Company officials attributed the year-over-year revenue growth primarily to an increase in the number of OneAccounts, an increase in activity per OneAccount, and the addition of the results of the sale of a subsidiary, Higher One Payments Inc. in the fourth quarter of 2009.
Higher One is based at Science Park and was founded in 2000 by Miles Lasater, Sean Glass and Mark Volchek while they were Yale University students.
The company’s OneAccount service combines college ID cards with a Debit MasterCard to give students purchasing power and to help them get refunds from their school faster. The accounts are protected by the Federal Deposit Insurance Corp.
The number of OneAccounts at the end of the second quarter totaled 1.2 million, up 82 percent from about 678,000 in the second quarter of 2009.
According to the earnings report, total enrollment of higher education clients who have purchased the OneDisburse product increased to 2.8 million, up about 739,000 from 2.1 million in same period a year ago; and total enrollment of higher education clients who have purchased the CASHNetsuite of payment products increased to 2.3 million, up about 665,000 from 1.7 million in the year-ago period.
“Our strong second-quarter revenue growth is a testament to the effectiveness of the solutions we have built for institutions of higher education as they continue to look for ways to become more efficient,” Dean Hatton, Higher One president and chief executive officer, said in a statement.
Higher One completed a $124.2 million initial public offering June 22. The company sold 3.6 million primary shares in the offering, generating net proceeds of $37.8 million.
“We were pleased to have been able to complete a deal in such volatile market conditions,” said Volchek, who is chairman and chief financial officer. “Our second-quarter results exemplify the fundamental strengths of the Higher One business model.”
The company’s cash and cash equivalents totaled $29.9 million as of June 30, compared to $3.3 million Dec. 31, 2009. Higher One paid down $10.5 million outstanding on a line of credit over the course of the second quarter.
Its services are provided to more than 4.8 million students at public and private higher education institutions nationwide. Higher One’s stock closed Thursday at $13.31 per share, down 34 cents on the New York Stock Exchange.
Follow this link for more information.