TRX, the transaction-processing and data-reporting company, eked out a modest profit in the first quarter and increased its earnings guidance.
The company, which counts Expedia and American Express as among its top clients, recorded $500,000 in profit in the first quarter of 2010, compared with a $43.6 million loss a year earlier. That loss in the first quarter of 2009 was tied to a noncash impairment charge of $43.7 million.
TRX's revenue declined marginally to $14.6 million in Q1 2010, with the company's core transaction-processing revenue dipping a bit and data reporting revenue up 4.4% to nearly $3 million.
The company has been under pressure as its largest client, Expedia, has been pulling back.
As of April 1, TRX stock has been trading on "Pink Sheets," namely the PINK OTC Markets.
However, TRX increased its annual revenue guidance for 2010 to $57 to $58 million (from $55 million) and adjusted EBITDA to $6 to $7 million (from about $5 million.)
Expedia Inc. and its affiliates accounted for 42% of TRX's revenue in first quarter 2010, and business from American Express accounted for 15% of TRX's revenue.