PR Newswire; 11/15/2005
- Revenue Up 194% Over 2004 -
MIAMI, Nov. 15 /PRNewswire-FirstCall/ -- Transax International Limited (BULLETIN BOARD: TNSX) is pleased to report financial results for the three and nine-month periods ended September 30, 2005. The period represents Transax's eleventh quarter of positive revenue growth since commencing its roll out program.
Net sales for the third quarter 2005 were $948,993, up 194% from $322,337 reported for the same period in 2004. The sharp increase in revenues is due to the roll out of new solutions on current contracts and corresponding transaction volume increases.
Operating expenses for the three months ended September 30, 2005 were $958,664, a decrease of $6,147 from operating expenses reported for the three months ended September 30, 2004. Operating loss for the three months ended September 30, 2005, narrowed to $9,671, or $0.01 per diluted share, as compared to a loss of $642,434 or $0.04 per diluted share for the three months ended September 30, 2004. Taking into account non-cash items, such as depreciation, the Company's operations are now performing profitably.
Net sales for the first nine months of 2005 were $2,450,424, up 217% from $772,576 reported for the comparable period in 2004. Operational losses narrowed for the period, to ($104,563) or $0.02 per share, from the ($1,082,813), or $0.08 loss per share reported for the same nine month period of 2004. Cash flow from operations for the nine-month period ending September 30, 2005 was $289,893.
Transax President and CEO Stephen Walters said, "We are extremely pleased with Transax's continued positive trajectory. While growing revenues close to 200% over last year, we were able to lower our operating expenses significantly, generating positive cash flow for continued growth."
Walters continued, "Our outlook for the remainder of the year is positive as we expect to triple revenues in 2005 over 2004. In addition to continued roll out of current contracts, Transax is undertaking development to make its product HIPAA-compliant for the U.S. market and we are actively pursuing strategic financing opportunities to ensure continued development and implementation of our products in the international marketplace during 2006."
During the third quarter 2005, Transax completed 1.75 Million "real time" transactions. Also during the quarter, Transax installed an additional 350 solutions to medical provider locations in Brazil. At the end of the third quarter, Transax had over 5000 solutions operational nationwide throughout Brazil, including more than 2500 POS solutions and 630 overlapping POS solutions undertaking transactions on behalf of multiple 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 expenditures. Based in Miami, Transax maintains a major operations office in Rio de Janeiro, Brazil with approximately 35 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 approximately US55cents per transaction.
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