TRX, Inc.(fka TRXI)

[surf1944]

TRX Reports First Quarter 2008 Results
Friday May 2, 6:30 am ET

ATLANTA, May 2 /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 March 2008.

Total revenues excluding client reimbursements for the first quarter of 2008 were $21.9 million compared with $25.3 million in the first quarter of 2007. Net loss for the first quarter was ($3.4) million compared with net income of $0.4 million in the first quarter of 2007. Net loss per diluted share was ($0.18) compared to net income per diluted share of $0.02 for the first quarter of 2007.

Revenues from transaction processing services for the first quarter of 2008 decreased to $17.6 million from $18.5 million in the first quarter of 2007. Revenues from data reporting services were $4.2 million, compared with $6.7 million in the prior year.

Adjusted revenues for the first quarter of 2008 were $25.4 million compared with $25.3 million in the first quarter of 2007. Adjusted revenues from data reporting services were $7.7 million, compared with $6.7 million in the first quarter of 2007. Adjusted revenues include $3.5 million of recurring data reporting services provided to Citibank which were required to be deferred under US GAAP until the Company's sale of a non-exclusive DATATRAX license. The license sale occurred on April 30, 2008. Adjusted EBITDA was $2.9 million for the quarter, compared with $3.4 million in the first quarter of 2007.

"Our business is making good strides thus far in 2008," said TRX President & CEO Trip Davis. "Our adjusted revenues in the first quarter of 2008 were stable against last year, indicating that our core business units are holding their own in a tough economic environment. We continue to expect organic volumes in transaction processing to moderate in 2008 due to the economy, and that data reporting and new client additions will largely offset those challenges. We will continue to fund long-term growth through innovation investment, to ensure our solutions are meeting our clients' future needs."

Based upon its expectations, TRX reiterated 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 to $23 million
is from data reporting.
-- Adjusted EBITDA of $8 to $10 million.
-- Capital expenditures of $7 to $8 million.
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