Travel technology vendor TRX reported a second-quarter profit of $22,000, compared with $13.1 million a year earlier.
The company's revenue fell from $37.7 million to $15.1 million, a 60% decrease.
Revenue from transaction processing was down 26%, to $12.2 million. TRX CFO David Cathcart said the decrease "reflected 4% overall degradation in volume and was consistent with the broad trends in the travel industry at this time."
Revenue from TRX’s data reporting business sank 87%, from $21 million to $2.7 million, primarily because of a reduction of TRX’s business with Citibank. In mid-2008, Citibank purchased a license from TRX to host its data platform in-house, Cathcart said.
TRX slashed second-quarter expenses by 39%, from $24.5 million to $14.8 million. Technology development costs were reduced 78%, to $801,000, "enabled primarily by our effort in the past year toward simplification and sunsetting duplicative technology."
TRX earlier this year decided to phase out its Datatrax reporting solution and go forward with the Traveltrax product only.
TRX’s largest shareholder is BCD Holdings, a Dutch company whose holdings include corporate travel agency BCD Travel (formerly known as WorldTravel Partners).