PLANTATION, FL -- (Marketwire) -- 08/24/10 -- Transax International Limited (Transax) (OTCQB: TNSX), a network solutions company for healthcare providers and health insurance companies, today reported financial results for the first half of 2010 and second quarter ended June 30, 2010.
For the quarter ending June 30, 2010 Transax generated net revenues of $1,046,429 compared to $1,093,705 in net revenues during second quarter of 2009, a 4% decrease. The decrease in revenue is due to the loss of one minor contract during the second quarter 2010 partly offset by continued growth in real-time transactions and rollout of previously announced contracts. Transaction volume was 2.3 million for the second quarter of 2010 compared to 2.1 million in the same period during 2009.
Loss from operations in the second quarter of 2010 was $418,904 compared with a $243,988 loss during the same period in 2009. Net loss for the second quarter of 2010 was $975,480 compared with a net loss in the second quarter of 2009 of $3,442,588. The decrease in net loss is principally due to a decrease in non cash items related to derivative liabilities expenses.
For the quarter ending June 30, 2010, the Company incurred $1,465,333 in operating expenses compared to $1,337,693 during the same period in 2009. The increase in expenses was attributed to significant increases in cost of product support services together with general and administrative expense increases in complying the Company products to new government regulations in Brazil.
For the six months ended June 30, 2010 revenues increased by 1% to $2,069,261 from $2,046,023 during the same period in 2009. The loss of one customer during the period was partially offset by revenues from new customers during the period. The Company recorded an operational loss of $938,180 for the six months ending June 30, 2010 compared to operational loss of $561,171 for the six months ending June 30, 2009. Net loss for the first six months of 2010 was $1,367,493 compared to a net loss of $3,721,815 for the same period in 2009.
At the end of the second quarter 2009 the Company had over 20,150 solutions installed in Brazil including 3,125 Point of Sales (POS) Solutions, 16,350 operational WEB solutions and 1,870 Interactive Voice Response (IVR) solutions with the balance of PC and Server solutions installed in medical laboratories. During the six month period ending June 30, 2010 the company installed over 5,000 WEB solutions to medical provider locations to support future roll out and revenue growth.
In announcing the results Stephen Walters, President & CEO, stated, "Transaction volumes have increased steadily during 2010 recording a 11% annual increase. The company installed 1,250 solutions during July 2010 and recorded over 850,000 for the month of July 2010. Additional roll out of solutions to increase revenues and reduction in operating costs is the main target of the company for the second half of the year."
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 800,000 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."
President & CEO
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