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MedQuist Reports Third Quarter 2008 Results
Date:11/4/2008

MOUNT LAUREL, N.J., Nov. 4 /PRNewswire-FirstCall/ -- MedQuist Inc. (Nasdaq: MEDQ), the largest Medical Transcription Service Organization (MTSO) in the world, today announced its results for the quarter ended September 30, 2008.

Net revenues for the third quarter of 2008 were $81.3 million compared with $82.5 million in the third quarter of 2007. The decrease in net revenues of $1.2 million or 1% from the prior year period was driven primarily by lower average pricing.

The operating loss for the quarter improved to a loss of $5.3 million compared to an operating loss of $10.3 million in the third quarter of 2007. The current period operating loss includes a charge of $5.9 million related to a tentative settlement of the Department of Justice's (DOJ) investigation of the company. The DOJ and the company have reached a tentative agreement to settle the DOJ's civil investigation for a payment of $6.8 million of which $0.9 million was previously recorded. Non-GAAP operating income (excluding the cost of investigation and legal proceedings, net) improved by $7.8 million to a profit of $1.9 million in the third quarter of 2008 compared to a non-GAAP operating loss of $5.9 million in the third quarter of 2007.

Cost of revenues were reduced by $7.1 million or 11% to $57.2 million in the third quarter of 2008 compared to $64.3 million in the third quarter of 2007. This resulted in a decrease in cost of revenues as a percentage of net revenues to 70% compared to 78% in the third quarter of 2007.

Selling general and administrative expenses declined $2.4 million or 15% to $13.1 million in the third quarter of 2008 compared to $15.5 million in the third quarter of 2007. This decline primarily reflects the benefits of the re
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SOURCE MedQuist Inc.
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