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Transcend Services, Inc.
Press Release Dated January 20, 2005
|FOR IMMEDIATE RELEASE|
|Contact:||Larry Gerdes, CEO, email@example.com|
January 20, 2005
(BW) (TRANSCEND SERVICES, INC.)(TRCR)
TRANSCEND REPORTS NINTH CONSECUTIVE QUARTERLY PROFIT
DESPITE DECREASE IN REVENUE OF 3% IN FOURTH QUARTER 2004
Atlanta, Georgia TRANSCEND SERVICES, INC. (TRCR/Nasdaq SmallCap) today announced its results for the three months and year ended December 31, 2004.
For the three months ended December 31, 2004, Transcend reported revenue of $3,901,000, which represents a 3% decrease from the comparable prior year quarter. Gross profit as a percentage of revenue decreased to 29% from 31%. Net income attributable to common stockholders decreased 77% to $82,000, or $0.01 per share, from $350,000, or $0.05 per share.
When compared to revenue of $3,668,000 in the third quarter of 2004, revenue increased $233,000 in the fourth quarter for the following reasons: (1) an increase in transcription service revenue of $163,000 attributable to new customers; (2) a net increase in transcription service revenue of $110,000 attributable to customers served during both quarters; and (3) a decrease in transcription service revenue of $40,000 attributable to customers that either terminated service or announced their intention to terminate service during 2004.
Tom Binion, President and Chief Operating Officer, commented: Our operating results for the fourth quarter reflect customer-originated delays in installing or ramping up new business. Unlike the third quarter of 2004, we currently have a sufficient number of transcriptionists to keep pace with our current and projected production volume. At present, we have signed, but uninstalled, contracts to provide service for 11 new customers with total estimated first year revenue of approximately $3.8 million. The addition of this new business will be spread over 2005 as the implementations involve 7 hospitals and more than 28 clinics. As previously announced, we introduced BeyondTXT, our speech recognition functionality, last month. We expect BeyondTXT to enhance our productivity, to effectively reduce the short supply of qualified medical language specialists and to improve our financial performance. So far, the performance of BeyondTXT exceeds our expectations. We expect to use BeyondTXT to produce the majority of our customers medical record documentation by the end of 2005.
Cash totaled $458,000 as of December 31, 2004, which represents a decrease of $100,000 since December 31, 2003. During the year ended December 31, 2004, Transcend invested $1,159,000 in capital additions, including $225,000 for externally developed BeyondTXT software and $177,000 for internally developed BeyondTXT software. In addition, the Company paid-off $200,000 of short-term debt related to its 2003 preferred stock redemption during the first half of 2004. As of December 31, 2004, Transcend had no debt and full availability under its $1.0 million bank line of credit. Subsequent to year-end, the Company made its final installment payment of $75,000 for the externally developed BeyondTXT software referred to above.
The following information was filed by Transcend Services Inc (TRCR) on Thursday, January 20, 2005 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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