USA Technologies Inc. today said its fiscal third-quarter gross profit was cut by more than half although revenue rose.

The Malvern company posted a profit of $318,000 for the quarter ended March 31, down 54 percent from $688,000 in last year's quarter.

Revenue was a record $2.69 million, a 66 percent rise from $1.62 million in the year-ago quarter.

The company provides technology for wireless non-cash transactions. For example, a large Coca-Cola bottler in the South is installing USA Technologies' payment equipment on about 1,000 vending machines, which will use the MasterCard Paypass system for customer payments. USA Technologies has a similar deal with Philadelphia Coca-Cola Bottling Co.

The company attributed the profit decline to its aggressive pricing to win the cashless vending business.

The gain in revenue came largely from equipment sales, activation fees, license and transaction processing fees.

USA Technologies' shares were down 64 cents in morning Nasdaq trading to $9.13.