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Transax International: Transax International Reports Second Quarter 2009 Results

^{Published on 2009-08-20 12:25:58, Last Modified on 2009-08-20 12:25:59 - Market Wire}
 

PLANTATION, FL--(Marketwire - August 20, 2009) - Transax International Limited (Transax) (OTCBB: [ TNSX ]), a network solutions company for healthcare providers and health insurance companies, today reported financial results for the first half of 2009 and second quarter ended June 30, 2009.

For the quarter ending June 30, 2009, Transax generated net revenues of $1,093,705 compared to $1,730,992 in net revenues during second quarter of 2008, a 37% decrease. The decrease in revenue is due to the loss of one principal contract effective January 1, 2009 partly offset by continued growth in real-time transactions and rollout of previously announced contracts. Transaction volume was 2.1 million for the second quarter of 2009.

Loss from operations in the second quarter of 2009 was $243,988 compared with a $101,561 loss during the same period in 2008. Net loss for the second quarter of 2009 was $3,442,588 compared with a net loss in the second quarter of 2008 of $901,447. The increase in net loss is principally due to an increase in non cash items related to derivative liabilities expenses.

For the quarter ending June 30, 2009, the Company incurred $1,337,693 in operating expenses compared to $1,832,553 during the same period in 2008. The decrease in expenses was attributed to significant decreases in cost of product support services together with general and administrative expense reductions.

For the six months ended June 30, 2009 revenues decreased by 36% to $2,046,023 from $3,211,956 during the same period in 2008. The significant decrease in revenue was due to the loss of a major customer but was partially offset by $402,000 of revenues from new customers during the period. The Company recorded an operational loss of $561,171 for the six months ending June 30, 2009 compared to operational income of $23,818 for the six months ending June 30, 2008. Net loss for the first six months of 2009 was $3,721,815 compared to a net loss of $161,584 for the same period in 2008.

At the end of the second quarter 2009 the Company had over 14,600 solutions installed in Brazil including 3,475 Point of Sales (POS) Solutions, 8,805 operational WEB solutions and 2,300 Interactive Voice Response (IVR) solutions. During the six month period ending June 30, 2009 the company installed over 5,000 WEB solutions to medical provider locations to support future roll out and revenue growth.

In announcing the results Stephen Walters, President & CEO, stated, "Quarter on quarter revenue increase of 15% for the first half of 2009 and decreases in operating losses coupled with increasing revenues from roll out of new contracts is expected to produce a break even situation by the end of the 3rd quarter 2009. During the 2nd quarter 2009 the company undertook an independent valuation of certain IP assets as part of its agreement with the buyer to conclude an amendment of the Purchase Agreement previously entered into in 2008. Negotiations are in progress and the company plans to complete the sale process of its Brazil assets no later than September 30, 2009."

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 45 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 700,000 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."