Science & Technology
Science and Technology
Science and Technology
Wed, November 25, 2009
Tue, November 24, 2009 
MIAMI, FL--(Marketwire - November 24, 2009) - Transax International Limited (Transax) (
For the quarter ended September 30, 2009, Transax generated net revenues of $1,155,060 compared to $1,774,551 in net revenues during third quarter of 2008, a 35% decrease. The significant decrease in revenues is principally due to the loss of one major customer in 2009 offset by roll out of new contracts signed during the year. Transaction volume increased to 2.33 million for the third quarter of 2009 with over 50% of transactions being performed by the company's proprietary Web based solution.
Loss from operations in the third quarter of 2009 was $448,694 compared with a $91,043 loss during the same period in 2008. The Company recorded Income prior to income taxes, for the third quarter of 2009 of $1,781,821 compared with Income prior to income taxes of $38,594 in the third quarter of 2008. The increase in Income was principally due a major gain in the fair value of the recording of derivative liabilities.
For the nine months ended September 30, 2009 revenues decreased by 35% to $3,201,083 from $4,986,507 during the same period in 2008. The decrease in revenue is predominantly due to the loss of one major customer from January 1, 2009 partly offset by revenue from new contracts. The Company recorded a loss from operations of $1,009,865 for the nine months ending September 30, 2009 compared to a $67,225 loss from operations during the same period in 2008. The increase in loss is primarily attributed to changes in charges to derivative liabilities and interest expense. Net Loss for the first nine months of 2009 was $1,939,994 compared to Net Loss of $126,842 during the same period in 2008.
At the end of the third quarter 2009 the Company had 16,768 solutions operational in Brazil including over 3,500 Point of Sales (POS) Solutions. During the nine months ended September 30, 2009 the company installed approximately 8000 Web solutions and disconnected over 800 Interactive Voice Response (IVR) Solutions allowing for greater operational flexibility and increased functionality for the client. The Company undertook 6.3 million real-time transactions during the nine months ending September 30, 2009. The Company has twelve contracts in place in Brazil eleven of which were generating revenues and one under a pilot test environment. At the end of the third quarter 2009 a majority of the Company's transactions were being undertaken by the Company's Web solution compared to less than 10% during the same period in 2008.
In announcing the results Stephen Walters, President & CEO, stated, "Revenue increase during the quarter was less than expected despite having signed a number of new contracts was less than expected due to a number of operational issues at our clients regarding connectivity. Notwithstanding transaction volumes have increased from 1.87 million in the first quarter of 2009 to 2.33 million during the third quarter of 2009. An independent valuation of certain IP assets was accepted by the Brazil authorities during the third quarter 2009 and the IP was registered in Brazil with the Intellectual Property Agency. The proposed buyer of the Brazil assets was issued a independent Rating Agency Report on the business in order to the structure the transaction via a Government registered Bank Credit Note. Negotiations have concluded with the buyer to complete the sale process and have funds in escrow during December 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 750,000 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."
