PLANTATION, FL -- (Marketwire) -- 11/23/10 -- Transax International Limited (Transax) (PINKSHEETS: TNSX), a network solutions company for healthcare providers and health insurance companies, today reported financial results for the first nine months of 2010 and third quarter ended September 30, 2010.
For the quarter ended September 30, 2010, Transax generated net revenues of $1,211,511 compared to $1,155,060 in net revenues during third quarter of 2009, a 4.9% increase. The increase in revenues is principally due to the continued roll out of new contracts signed during the previous year and organic growth from existing clients. Transaction volume increased to 2.61 million for the third quarter of 2010 with some 66% of transactions being performed by the company's proprietary Web based solution compared with 50% during the same period in 2009.
Loss from operations in the third quarter of 2010 was $332,240 compared with a $448,694 loss during the same period in 2009 a decrease of 26%. The Company recorded a loss prior to income taxes, for the third quarter of 2010 of $460,823 compared with Income prior to income taxes of $1,781,821 in the third quarter of 2009. The increase in loss was principally due to a reversal from the gain in the fair value of the recording of derivative liabilities.
For the nine months ended September 30, 2010 revenues increased by 2.5% to $3,280,772 from $3,201,083 during the same period in 2009. The increase in revenue is predominantly due to increase in roll out of the additional solutions. The Company recorded a loss from operations of $1,271,420 for the nine months ending September 30, 2010 compared to a $1,009,865 loss from operations during the same period in 2009. The increase in loss is primarily attributed to increases in general and administrative costs and compensation expenses. Net Loss for the first nine months of 2010 was $1,828,306 compared to Net Loss of $1,939,994 during the same period in 2009.
At the end of the third quarter 2010 the Company had 24,833 solutions operational in Brazil including over 3,100 Point of Sales (POS) Solutions. During the nine months ended September 30, 2010 the company installed approximately 7800 Web solutions and disconnected over 100 Interactive Voice Response (IVR) Solutions allowing for greater operational flexibility and increased functionality for the client. The Company undertook 7.1 million real-time transactions during the nine months ending September 30, 2010 compared to 6.3 million transactions during the same period in 2009. The Company has twelve contracts in place in Brazil eleven of which were generating revenues and one under a pilot test environment. At the end of the third quarter 2010 approximately 68% of the Company's transactions were being undertaken by the Company's Web solution compared to 52% at the start of 2010.
In announcing the results Stephen Walters, President & CEO, stated, "Since January 2010 revenues have increased approximately 19% in line with the transaction volume which has increased from 2.2 million in the first quarter of 2010 up to 2.6 million transactions for the third quarter 2010. The company continues to seek operating efficiencies to reduce costs and operational losses while undertaking continued development of its product in the Brazil market place."
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 40 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 850,000 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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