TRX Reports Fourth Quarter and Fiscal 2007 Results
Friday March 7, 6:30 am ET
ATLANTA, March 7 /PRNewswire-FirstCall/ -- TRX, Inc. (Nasdaq: TRXI - News), a global technology company that develops and hosts software applications to process data records and automate manual processes, today reported financial results for the quarter ended 31 December 2007.
Total revenues excluding client reimbursements for the fourth quarter of 2007 were $18.6 million compared with $26.1 million in the fourth quarter of 2006. Net loss for the fourth quarter was ($4.2) million compared with net income of $1.3 million in the fourth quarter of 2006. Net loss per diluted share was ($0.23) compared to net income per diluted share of $0.07 for the fourth quarter of 2006.
Revenues from transaction processing services for the fourth quarter of 2007 decreased to $14.0 million from $15.6 million in the fourth quarter of 2006. Revenues from data reporting services were $3.3 million, compared with $5.1 million in the prior year. Revenues from customer care activities decreased 75% to $1.3 million, as the Company continued to execute on its previously announced strategy of transitioning away from call center services.
Adjusted revenues for the fourth quarter of 2007 were $22.1 million compared with $26.1 million in the fourth quarter of 2006. Adjusted revenues from data reporting services were $6.8 million, compared with $5.1 million in the fourth quarter of 2006. Adjusted revenues include $3.5 million of recurring data reporting services provided to Citibank which are required to be deferred under US GAAP until the Company's sale of a non-exclusive DATATRAX license, previously announced in July 2007, occurs. Management currently expects the $4.5 million license sale to occur in the first half of 2008. Adjusted EBITDA was $1.8 million for the quarter, compared with $3.8 million in the fourth quarter of 2006.
For the twelve months ended 31 December 2007, revenues excluding client reimbursements were $89.5 million, compared to $113.5 million in 2006, including revenues from data reporting of $20.9 million in 2007 and $17.8 million in 2006. Net loss for the twelve months ended 31 December 2007 was ($8.0) million, compared with net income of $7.3 million for 2006. Adjusted revenues were $96.0 million, compared with $113.5 million for 2006. Adjusted revenues from data reporting services were $27.4 million, compared with $17.8 million for 2006. Adjusted EBITDA was $10.2 million, compared with $18.7 million for 2006.
"Our transformational efforts made good strides in 2007," said TRX President & CEO Trip Davis. "Our revenues in 2007 were stronger than we anticipated at the start of the year, which enabled us to execute faster on our innovation priorities. We expect organic volumes in transaction processing to moderate in 2008 due to the economy, and that data reporting and our sales pipeline will largely offset those challenges. We will continue to fund long-term growth through innovation investment, to ensure our solutions are meeting our clients' needs."
Based upon its expectations, TRX provided its guidance for fiscal 2008, inclusive of the $4.5 million DATATRAX license sale referred to above:
-- Adjusted revenues of $92 to $95 million, of which $20-$23 million is
from data reporting.
-- Adjusted EBITDA of $8 to $10 million.
-- Capital expenditures of $7 to $8 million.
surf's up......crikey
