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Rahaxi, Inc.: Rahaxi Inc. Reports Consistent Growth in Its Core Transaction and Processing and Related Revenue

  //house-home.news-articles.net/content/2008/12/0 .. nsaction-and-processing-and-related-revenue.html
  Published in House and Home on Tuesday, December 9th 2008 at 7:22 GMT by Market Wire

DUBLIN, IRELAND--(Marketwire - December 9, 2008) - Rahaxi Inc. (OTCBB: [ RHXI ]), an international card payments processor and technology company, reports For the three months ended September 30, 2008, the Company reported an increase in its core transaction processing and related revenue of approximately 16% to $564,413 during the three months ended September 30, 2008 compared to $487,723 during the comparable period of the prior year. The Company processed a total of 5,248,917 transactions during the three months ended September 30, 2008, an increase of 123,243 or approximately 2.4 % compared to 5,125,674 transactions processed during the prior year. The increase in the number of transactions processed was primarily related to the increase in the number of clients compared to the same period of the prior year.

Expectations of revenue level are set to increase throughout the next twelve months as the company continues to increase its client base and service offerings, such as China UnionPay transactions in France, EMV transaction processing, dynamic currency conversion and sales of point of sale terminals in Europe and Latin America.

For the three months ended September 30, 2008, the Company reported an increase in its core transaction processing and related revenue of approximately 16% to $564,413 during the three months ended September 30, 2008 compared to $487,723 during the comparable period of the prior year. The Company processed a total of 5,248,917 transactions during the three months ended September 30, 2008, an increase of 123,243 or approximately 2.4 % compared to 5,125,674 transactions processed during the prior year. The increase in the number of transactions processed was primarily related to the increase in the number of clients compared to the same period of the prior year.

Paul Egan, the Company's President and Chief Executive Officer, commented that, "We are pleased to report further increases in our core business, both in terms of revenue and in pure volume. The fact that we have achieved these results in the face of the headwind of the sluggish world economy speaks very well of the strength of our core business, and of the growing acceptance of our products and services." Mr. Egan continued, "We believe we are on track in the roll-out of our long term plan. Many of our development projects are now complete, and we are positioned to further enhance our business mix in the coming year, which should result in further gains in market share and overall core business revenue."

Ciaran Egan also noted that the Company's margins have dramatically improved: during the current quarter, gross profit on sales was $516,128 or a profit margin or approximately 58%, compared to a gross margin of $73,625 or approximately 5%. Ciaran Egan noted that, "During the year ended June 30, 2008, we recognized an impairment charge in the amount of $4,086,502 on our capitalized software and software licenses."

ABOUT RAHAXI INCORPORATION

Rahaxi Incorporation provides mission critical solutions to the financial industry worldwide. Working with merchants and acquires in over twenty countries, our product suite has empowered partners to focus on their core competencies, while our innovative driven approach has allowed them to benefit from first to market advantage and realize their true potential. Rahaxi Incorporation has adopted a partnership strategy for growth. Our partners are market leaders in their respective industries. These include IKEA, Finnair and Stockman. Our Subsidiaries Rahaxi Processing Oy Finland, Rahaxi Incorporation Ireland Limited and Rahaxi Dominicana S.A. Dominican Republic, continue to develop and implement first class products and solutions that enhance the service level our partners can offer customers. For more information, please visit [ http://www.rahaxi.com ].

Forward-Looking Statements

Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. When used in this press release, the words "expects," "anticipates," "believes," "plans," "will" and similar expressions are intended to identify forward-looking statements. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the companies, are forward-looking statements that involve risks and uncertainties. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Rahaxi cautions that these forward-looking statements are further qualified by other factors including, but not limited to, those set forth in Rahaxi's Form 10-K filing and other filings with the U.S. Securities and Exchange Commission (available at [ www.sec.gov ]). Rahaxi undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events, or otherwise. The summary financial information contained herein is qualified in its entirety by reference to the information contained in Rahaxi's Form 10-K filing.