PR Newswire; 8/19/2005
-Revenue up 175% Over Q2FY04-
MIAMI, Aug. 19 /PRNewswire-FirstCall/ -- Transax International Limited (BULLETIN BOARD: TNSX) is pleased to report financial results for the three and six-month periods ended June 30, 2005.
During the second quarter ended June 30, 2005, Transax reported revenues up 175%, or $861,023 in net revenues as compared to $312,165 in net revenues for the same period last year. The sharp increase in revenues is due to the rollout of new solutions on current contracts and corresponding transaction volume increases.
Operating expenses for the three months ended June 30, 2005 were $916,717, an increase of $525,463 from operating expenses for the three months ended June 30 2004. Operating loss for the three months ended June 30 2005, was ($55,764), or $0.01 per diluted share, as compared to a loss of ($78,709) or $0.01 per diluted share for the three months ended June 30, 2004. During the quarter ended June 30, 2005 Transax recorded a one time charge of $71,000 relating to a restructuring of its call center and customer care departments without which the company would have recorded an operating profit for the three months ended June 30, 2005.
During the six-months ended June 30, 2005, revenues were $1,501,431, an increase of 233% from $450,199 reported for the comparable period in 2004. Operational losses narrowed for the period, to ($94,892) or $0.01 per share, a decrease from the ($440,379), or $0.04 loss per share reported for the same six month period of 2004. Cash flow from operations for six-month period ending June 30, 2005 was $251,045.
Transax President and CEO Stephen Walters said, "We are extremely pleased with Transax's positive growth in revenues and cash flow from operations to date. As we continue research and development for the U.S. and other markets and begin to realize the benefit of new installations to current and potential clients, we expect this growth trend to continue in 2005 while maintaining careful financial controls."
Walters continued, "As we continue to develop our proprietary solutions for the healthcare sector over the long term, we intend to actively pursue strategic financing opportunities to ensure continued development and implementation in the international marketplace."
During the second quarter 2005, Transax completed 1.7 Million "real time" transactions, a 186% increase as compared with the same period in 2004. During the six months ended June 30, 2005 Transax installed a record 1,043 Point of Sales (POS) solutions. At the end of the second quarter 2005, Transax had over 4,600 solutions operational in Brazil including 2,345 POS solutions at medical provider locations and 2,200 Interactive Voice Response solutions all undertaking "real time" adjudication of medical claims on behalf of major health insurance companies. In addition the company continued to integrate medical laboratories in Brazil for seamless authorization and adjudication of medical transactions on behalf of its clients.
About Transax International Limited
Transax provides network solutions to healthcare providers and health insurance companies. Utilizing its proprietary technology, Transax provides a service similar to a credit card processing for the health insurance industry. A Transax transaction consists of: approving eligibility, authorization, auto- adjudication of the health claim and generating the claim payable files all instantaneously in "real time"- regardless of method of claim generation. Transax's solutions have been proven to significantly decrease health insurance claim expenditure. Based in Miami, Transax maintains a major operations office in Rio de Janeiro, Brazil with approximately 30 staff. The Company has contracts in place with major health insurers for up to 2,500,000 transactions per month and currently undertakes approximately 600,000 transactions per month. Transax receives about US50cents per transaction.
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