PLANTATION, FL -- (Marketwire) -- 05/24/10 -- Transax International Limited (Transax) (PINKSHEETS: TNSX), a network solutions company for healthcare providers and health insurance companies, today reported financial results for first quarter ended March 31, 2010.
For the quarter ending March 31, 2010, Transax generated net revenues of $1,022,832 compared to $952,318 in net revenues during first quarter of 2009, a 7.4% increase. The increase in net revenues was reflected in the increase in transaction volume during the quarter to 2.2 million compared with 1.9 million transactions during the same period in 2009. During the quarter ending March 31, 2010 Transax undertook 1.3 million transactions using the company's proprietary Web solution, 0.5 million transactions from POS (Point of Sale) terminals and 0.4 million transactions from the PC and IVR (Interactive Voice Response) solutions.
Loss from operations in the first quarter of 2010 was $519,276 compared with loss of $317,183 during the same period in 2009. The increase in operational loss during the first quarter 2010 was principally due to increased staffing for new Brazilian medical code standards to be implemented in May 2010. Net loss for the first quarter of 2010 was $392,227, compared with net loss in the first quarter of 2009 of $279,227. The increase in net loss is principally due increases in operational costs being offset by gains from derivative liability expenses.
For the quarter ending March 31, 2010, the Company incurred $1,542,108 in operating expenses compared to $1,269,501 during the same period in 2009. The increase in operating expenses was attributed to increases in costs for compensation and benefits with respect to the Company's Brazil operations related to new product development. During the quarter ending March 31, 2010 the Company had ten signed contracts in Brazil, one of which is under development and awaiting implementation. At the end of the first quarter 2010 the company had over 19,600 solutions operational in Brazil including 14,700 of the company's proprietary Web solution, over 3,100 POS solutions and 1,700 IVR solutions.
In announcing the results Stephen Walters, President & CEO, stated, "The Company had to invest heavily during the first quarter 2010 for new government standards of medical transactions to be implemented in Brazil during May 2010 thereby increasing the Company's operational loss. Increasing transaction volumes through roll out of new contracts signed in 2009 and existing contracts are expected to increase the Company's revenues throughout 2010 and bring the Company to a break even status."
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.'
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Press Release Service provided by PRConnect.
Stock quotes supplied by Telekurs USA
Postage Rates Bots go here