PLANTATION, FL -- (Marketwire) -- 04/15/10 -- Transax International Limited (Transax) (PINKSHEETS: TNSX), a network solutions company for healthcare providers and health insurance companies, today reported financial results for the fiscal year ended December 31, 2009.
Revenues decreased by 30% in 2009 to $4.29 million from $6.12 million in 2008. The revenue loss was due to the cancellation of one principal client contract partly offset by additional revenues from new client contracts signed during the year.
Operating expenses in 2009 decreased by 14% to $5.94 million from $6.94 million recorded in 2008 principally due to a decrease in expenses relating to product support services and an 18% decrease in General and Administrative costs during the year.
During 2009 we undertook 8.4 million real-time transactions compared to 8.9 million transactions in 2008. In compliance with Brazil's new electronic health care standard (TISS) introduced in 2008 electronic transactions from the company's proprietary Web solution now make up more than 50% of transactions undertaken and transactions from POS terminals less than 30%. Transactions from Interactive Voice Response units and the company's Server solution installed into medical laboratories made up the balance of transactions undertaken. At the end of 2009 the company had a total of 17,000 real time solutions operational in Brazil and 9 contacts in place with health insurance providers.
In announcing the results Stephen Walters, President & CEO, stated, "Increasing competition in the marketplace and a new shift to electronic transactions being undertaken by clients to a lower price WEB solution has brought a new operating environment for the company in 2009. During 2009 the company was not able to conclude a negotiation for the sales transaction entered into in 2008 despite agreeing to an amendment of the Purchase Agreement entered into with the buyer. The company is currently seeking other potential buyers or combinations for the business with strategic partners."
About Transax International Limited
Transax International is an emerging network solutions provider for the healthcare sector. Utilizing its proprietary MedLink technology, Transax provides a service similar to credit card processing for the health insurance and providers industries. A transaction consists of: approving eligibility, authorization, auto-adjudication of the health claim and generating the claim payable files -- provided instantaneously in "real time" -- regardless of method of claim generation.
Transax's solutions have been proven to significantly decrease health insurance claim expenditures and healthcare provider costs. Based in Plantation, Fl, Transax maintains a major operations office in Rio de Janeiro, Brazil with approximately 45 staff and a Sales Office in Sao Paulo, Brazil. The Company has contracts in place with major health insurers in Brazil and currently undertakes approximately 700,000 transactions per month.
SAFE HARBOR STATEMENT: 'THIS NEWS RELEASE MAY INCLUDE FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF SECTION 27A OF THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, AND SECTION 21E OF THE UNITED STATES SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED, WITH RESPECT TO ACHIEVING CORPORATE OBJECTIVES, DEVELOPING ADDITIONAL PROJECT INTERESTS, THE COMPANY'S ANALYSIS OF OPPORTUNITIES IN THE ACQUISITION AND DEVELOPMENT OF VARIOUS PROJECT INTERESTS AND CERTAIN OTHER MATTERS. THESE STATEMENTS ARE MADE UNDER THE "SAFE HARBOR" PROVISIONS OF THE UNITED STATES PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND INVOLVE RISKS AND UNCERTAINTIES WHICH COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE IN THE FORWARD-LOOKING STATEMENTS CONTAINED HEREIN.'
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