VersaPay has released its financial and operational results for the second quarter of 2012. The merchant services, payment processing and email money transfer (EMT) solutions company grew year over year revenues by 12 per cent and recurring revenues by 13 per cent.

However, this did not help the company's stock performance. According to NASDAQ, the Toronto-based company's second-quarter net loss amounted to C$413,000, or C$0.03 per share. This is slightly up from the previous year, which saw a net loss of C$278,000 or C$0.02 per share. Analysts were attributing this wider loss to higher operating expenses.

"Our revenue growth in the quarter highlights the benefits of our recurring revenue business model," Bill McGill, CEO of VersaPay, said in a statement. "We continue to invest in our proprietary platform to drive future growth. While this investment has negatively impacted on our near term earnings, we are very encouraged by the feedback that we have been receiving from potential partners and our customers and are optimistic about our ability to earn an attractive return on this investment."

According to the report, total revenues for the second quarter of 2012 increased by 12 per cent to C$4.2 million, jumping up from C$3.8 million over the same time period the previous year. For the year to date, revenues have increased by 15 per cent to C$8.1 million from the C$7.1 million over the first half of 2011. Adjusted Earnings Before Interest, Taxes, Depreciation, Amortization and Share-based payments (EBITDA) for the second quarter was at C$0.3 million, a slight uptick from the C$0.2 million in the second quarter of 2011.