OTCPicks.com: OTCPicks.com Daily Market Movers Digest Midday Report for Friday, August 15th GNAU, SPNG, RAMR, GPIC, TRXI, CCMJ

Aug 15, 2008 (M2 PRESSWIRE via COMTEX) -- TRXI | Quote | Chart | News | PowerRating -- Our Stocks to Watch today include General Automotive Co. (OTCBB: GNAU), SpongeTech Delivery Systems Inc. (OTCBB: SPNG), RAM Holdings Ltd. (Nasdaq: RAMR), Gaming Partners International Corp. (Nasdaq: GPIC), TRX Inc. (Nasdaq: TRXI | Quote | Chart | News | PowerRating) and CruiseCam International Inc. (OTC: CCMJ).

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GENERAL AUTOMOTIVE COMPANY (OTCBB: GNAU)

Detailed Quote: http://www.otcpicks.com/quotes/GNAU.php

Company Profile: http://www.otcpicks.com/general-automotive/general-automotive-2.htm

General Automotive Company ("GAC") is a provider of original equipment and aftermarket automotive parts, mobile electronics, and related automotive products at multiple levels of distribution throughout the United States and internationally. Through its two wholly owned subsidiaries, Global Parts Direct and OE Source, the company focuses its efforts on utilizing its relationships with manufacturers in China, Korea and Japan to bring state-of-the-art automotive parts, accessories and products to automobile manufacturers and major parts distributors in the U.S. For more information on GAC and its products, visit www.generalautomotive.com.

GNAU News:

August 15 - General Automotive Announces Second Quarter 2008 Results

General Automotive Company (OTCBB: GNAU | Quote | Chart | News | PowerRating) ("GA"), a global provider of parts, accessories and advanced technology for the automotive industry, reported financial results for its second quarter ended June 30, 2008.

Revenues for the 2008 second quarter totaled $3,212,100 compared to $3,843,100 in the 2007 second quarter. Gross profit for the 2008 second quarter was $285,100 compared to $498,700 in the prior-year period. The company recorded a net loss of $420,000, or $0.03 per diluted share, compared to a net loss of $259,100, or $0.59 per diluted share, in the 2007 second quarter. The results for the 2008 and 2007 period include expenses of $20,600 and $311,800, respectively, for stock-based compensation.

For the six months ended June 30, 2008, GA reported revenues of $7,280,300 compared to $6,358,000 for the first half of 2007, an increase of 14.5%. The company reported a net loss for the 2008 period of $924,000, or $0.09 per diluted share, compared to a net loss of $701,900, or $1.70 per diluted share, in the first half of 2007. The results for the first six months of 2008 and 2007 include expenses of $48,750 and $623,600, respectively, for stock-based compensation.

President and CEO Joe DeFrancisci commented, "Our OE Source (OES) business unit continued the strong performance it demonstrated in the first quarter of 2008, increasing both sales and margins due to high demand for engine replacement parts. OES' growth was offset in the second quarter by the slowdown in the domestic new car market that our Global Parts Direct (GPD) unit serves, as well as by lower pricing for GPD's 10-inch DVD players.

"We have implemented a series of cost reductions to respond to the weakness in new car sales. At the same time, we are working to increase revenues and margins through a variety of initiatives, including introducing new products and broadening our suppliers, both domestically and overseas. We expect the new suppliers to enable us to realize significant cost savings, allowing us to offer reduced prices to our existing customer base for large-quantity orders while increasing GA's gross profit margins.

"The placement we recently closed, as well as the conversion of notes payable into common stock in February 2008, have strengthened our balance sheet and better position us to implement our business plan in the coming months."

CFO Harry Christenson added, "During the 2008 second quarter, our cost of goods sold stabilized to historical levels with no extraordinary items compared to the prior-year period. While the company benefited from the reduced expense of stock-based compensation of approximately $291,200, this benefit was offset by the loss of gross profits at GPD and approximately $173,000 in additional expenses as a result of being a public company."

SPONGETECH DELIVERY SYSTEMS (OTCBB: SPNG)

Detailed Quote: http://www.otcpicks.com/quotes/SPNG.php

Company Profile: http://www.otcpicks.com/spongetech/spongetech.htm

SpongeTech Delivery Systems is a development stage company which designs, produces, markets and distributes cleaning products for vehicular use utilizing patented technology relating to sponges containing hydrophilic (liquid absorbing) foam polyurethane matrices. The Company's sponges are specially configured with an outer contact layer and an inner matrix, which is loaded with specially formulated soaps and wax that are released when the sponge is applied to a surface with minimal pressure. The Company's products are currently designed specifically for vehicular cleaning use. However, the Company is exploring the possibility of using its patented technology for the development of sponges for other uses, including for use with anti-bacterial, bath and kitchen soaps for household uses, as well as for use as a children's bath foam sponge.

SPNG News:

August 14 - SpongeTech Delivery Systems, Inc. Approves Share Repurchase Program

SpongeTech to Repurchase Shares of Stock

SpongeTech Delivery Systems, Inc. (OTCBB: SPNG | Quote | Chart | News | PowerRating) announced that its Board of Directors has approved a repurchase program of the company's free trading shares of common stock. The company is authorized to repurchase up to 25 million shares of stock under the plan, which takes effect Monday, August 18th 2008. The broker of record representing the repurchase program will be R.F. Lafferty & Co., Inc.

The company has, issued and outstanding, approximately 400 million shares of stock, of which 267 million shares are restricted shares issued for financing and advertising purposes. The company also expects to repurchase these shares within the next 18 months. Management and the Board of Directors feel strongly about the company and its growth prospects, and feel that a repurchase plan at this time is justified and prudent in its development, as well as enhancing shareholder value. The repurchase plan authorizes management, at its discretion, to repurchase shares in the open market or in privately negotiated transactions as permitted by securities laws and other legal requirements, and subject to market conditions and other factors.

RAM HOLDINGS LIMITED (NASDAQ: RAMR | Quote | Chart | News | PowerRating) "Up 17.14% in morning trading"

Detailed Quote: http://www.otcpicks.com/quotes/RAMR.php

RAM Holdings, Ltd., through its subsidiary, RAM Reinsurance Company, Ltd., provides financial guaranty reinsurance for public finance and structured finance debt obligations insured by monoline financial guaranty companies in the United States and internationally. It provides reinsurance policies in two product lines, public finance and structured finance. Public finance obligations primarily consist of debt obligations issued by or on behalf of states, or other governmental entities or their political subdivisions; other public and quasi-public entities, including public universities and not-for-profit hospitals, and non U.S. sovereigns and their political subdivisions; private universities and hospitals; and investor-owned utilities. Structured finance obligations are securities backed by pools of assets, such as residential mortgage loans, consumer or trade receivables, securities, short-term bank deposits, or other assets having a cash flow or market value that are held by a special purpose issuing entity. RAM Holdings markets its reinsurance policies directly through the execution of treaty and facultative contracts with seven primary insurers. The company was incorporated in 1998 and is based in Hamilton, Bermuda.

RAMR News:

August 15 - RAM Holdings Ltd. Announces Second Quarter Net Income of $126.3 Million

Provides Certain Proforma Information Relating to Syncora Guaranty Re Commutation

RAM Holdings Ltd. (Nasdaq: RAMR | Quote | Chart | News | PowerRating) ("RAM") reported second quarter 2008 net income of $126.3 million, or net income of $4.63 per diluted share. This compares to net income of $9.1 million, or $0.33 per diluted share, for the second quarter 2007. The increase for the second quarter 2008 is attributable to the following:

1) Unrealized mark-to-market gains on credit derivatives of $151.5 million, or $5.56 per basic and diluted share, resulting from the following:

A) Increase in gross mark-to-mark losses on credit derivatives of $61.7 million in the quarter due to further deterioration in collateralized debt obligations of asset-backed securities (ABS CDOs).

B) Increase in the FAS 157 adjustment for RAM's own non-performance risk of $213.2 million.

2) The net unrealized gain was offset by an increase in loss and loss adjustment expenses of $45.8 million, relating primarily to continuing deterioration in the performance of residential mortgage-backed securities ("RMBS").

An operating loss, a non-GAAP financial measure which is unaffected by the non-operating gains or losses (see explanation of Non-GAAP Financial Measures), of $116.2 million, or $(4.26) per diluted share, was recorded compared to operating income of $9.1 million, or $0.33 per diluted share in the second quarter 2007. The operating loss resulted primarily from an increase in credit impairments1 associated with ABS CDOs of $86.7 million during the second quarter of 2008, the majority which was subsequently commuted.

Commenting on financial results, RAM Chief Executive Officer Vernon M. Endo noted that, "The residential mortgage market continued to deteriorate in the second quarter resulting in increased reserves and CDS impairments in the quarter. Consistent with many financial guaranty insurance companies our reported net income of $126.3 million for the quarter largely resulted from a net unrealized gain recorded on our credit derivatives of $151.5 million. This gain included a positive adjustment of $213.2 million which related directly to the widening of RAM Re's estimated credit spread during the quarter. As we have said in the past we expect CDS unrealized fair value gains and losses to net to zero at contract maturity absent impairments."

"While our recent downgrades from S&P and Moody's are disappointing we made significant progress in improving the risk profile of the Company subsequent to quarter end by commuting about $1.0 billion of troubled 2005-2007 vintage RMBS and ABS CDOs. Recent ratings actions in the industry have caused significant uncertainty. We remain focused, however, on improving our capital position by prudently reducing high capital charge segments of our insured portfolio and writing well-priced business with our two remaining treaty customers."

Subsequent Event

On July 25, 2008, RAM entered into a Commutation Agreement with Syncora Guaranty Re (formerly XL Financial Assurance Ltd.) ("XLFA") to commute all business assumed by RAM back to XLFA for a payment of $94.4 million, which included unearned premiums net of ceding commissions of $8.6 million. On a proforma basis, giving effect to the commutation transaction, as of June 30, 2008 the Company would have recorded additional net income of $22.8 million which would have resulted in the Company having total shareholders' equity calculated in accordance with U.S. generally accepted accounting principles ("GAAP") of approximately $203.7 million and retained earnings of ($31.1) million versus the $180.9 million and ($53.9) million, respectively, actually reported as at June 30, 2008. The proforma shareholders' equity and retained earnings include assumptions based on the commutation agreement and the related transaction and will be recorded in the quarter ending September 30, 2008. There can be no assurance that the Company's assumptions will not differ materially from the ultimate treatment or impact of the aforementioned transactions.

The commutation transaction reduced the par amount of RAM's insured portfolio by $3.5 billion of which $711 million related to 2005 - 2007 vintage ABS CDOs (all structured as credit derivatives) and $280 million of 2005 - 2007 vintage RMBS.

On a proforma operating basis, RAM paid $94.4 million which removed June 30, 2008 balances of (i) $30.4 million in case reserves, (ii) $119.9 million in credit impairments on ABS CDOs and (iii) $8.6 million of unearned premiums, net of ceding commission, which would have resulted in a reduction of the reported operating loss by $64.6 million.

Gains on Credit Derivatives

Net unrealized gains on credit derivatives amounted to $151.5 million for the second quarter of 2008 compared to an immaterial unrealized loss for the second quarter of 2007. The unrealized gain resulted primarily from RAM Re's estimate of its non-performance risk, which considers an estimated credit spread for RAM Re (as there are no observable credit spreads in the market for RAM Re), which widened considerably in the quarter. The adjustment for RAM Re's own non-performance risk was offset by ratings downgrades and spread changes on ABS CDOs. RAM is required to comply with Statement of Financial Accounting Standard No 157 "Fair Value Measurements" ("FAS 157"), which requires the Company to adjust for its own non-performance risk when measuring the fair value of its derivative liabilities. The effect of the change in RAM Re's risk of non-performance can result in large variations in the credit derivative liability quarter-on-quarter, which is based on how the market perceives RAM Re's creditworthiness. The effect of the FAS 157 adjustment for RAM's credit worthiness resulted in a positive adjustment of $213.2 million to the net mark-to-market charge during the second quarter of 2008. Gross unrealized losses, prior to the effect of the FAS 157 non-performance risk adjustment, were $516.3 million of which $143.5 million represents credit impairments, a non-GAAP measure, primarily resulting from adverse developments in ABS CDOs, including the subsequently commuted XLFA ABS CDOs of $119.9 million. The balance of the unrealized gains/losses on credit derivatives, in the absence of further credit impairments, are expected to net to zero over the remaining life of the insured credit derivatives. The unrealized gains, except for credit impairments, do not impact operating earnings, a non-GAAP measure of income used by market analysts in assessing the Company's performance.

Loss Reserve Activity In the second quarter, RAM increased net case basis loss reserves (loss reserves for probable and estimable losses) to $90.5 million, an increase of $40.4 million in the second quarter and $61.9 million year to date. The $90.5 million includes $30.4 million of loss reserves associated with the subsequently commuted XLFA RMBS policies. The increase in case reserves relates primarily to home equity line of credit (HELOC), Alt-A, and closed-end second-lien (CES) transactions that have continued to underperform. Total net claims paid during the second quarter and year to date amounted to $16.1 million and $23.2 million, respectively, and related primarily to RMBS policies.

Case reserves and unallocated reserves for all RMBS exposures amounted to $88.7 million and $21.4 million, respectively at June 30, 2008, and represents 90% of RAM's total loss reserves. Additionally, gross credit impairments, a non-GAAP measure, on ABS CDOs amounted to $143.5 million, an increase of $86.7 million in the quarter, which are included in derivatives liabilities net of RAM's FAS 157 creditworthiness adjustment.

Adjusted Premiums Written

RAM reported adjusted premiums written, a measure of business production, of $6.0 million for the second quarter of 2008, which represents an 86% decrease over the comparable quarter in 2007. Year-to-date adjusted premiums written were $47.3 million compared to $70.5 million for the same period in 2007, a decrease of 33%. RAM expects new business production will be minimal for the remainder of 2008 because RAM's two remaining treaty customers are on review for downgrade by Moody's and there is minimal activity in the industry.

Net adjusted premiums written is a non-GAAP measure of business production which includes both upfront premiums written and the present value of future installment premiums for new business written in the quarter (note: present value of installment premiums is reported by RAM at a one-quarter lag).

Net adjusted premiums written declined approximately 86% compared to prior year second quarter, primarily the result of reinsuring business from only two ceding companies that are currently writing business. Public finance net adjusted premiums for the quarter were $1.9 million, 94% below the $29.5 million for the second quarter of 2007. Structured finance adjusted premiums declined by $10.0 million, or 71%, to $4.1 million from $14.1 million in 2007. Following recent strategy announcements by RAM's ceding companies, RAM believes that only Assured Guaranty intends to insure structured finance transactions for the foreseeable future, and therefore we expect to receive minimal cessions of structured finance transactions for the remainder of 2008.

Net Income/(Loss) and Operating (Loss)/Income

Net income/(loss) was $126.3 million and ($63.2) million for the quarter and six months ending June 30, 2008. While net income/(loss) and net income/(loss) per diluted share are calculated in conformity with U.S. generally accepted accounting principles (GAAP), RAM provides other information because the Company's management and Board of Directors, as well as many research analysts and investors, evaluate financial performance on the basis of operating earnings, which excludes realized gains or losses on investments, gains or losses on credit derivatives, unrealized gains on other financial instruments, and adds back credit impairments on credit derivatives. Some research analysts and investors further evaluate earnings by excluding the net income impact of refundings (accelerated premiums and associated earnings) from operating earnings to produce what is referred to as "core" earnings.

During the second quarter, net unrealized gains on derivatives and other financial instruments totaled $151.5 million, or $5.56 per diluted share. Refundings offset the further increased net income by $6.3 million or $0.23 per diluted share.

Summary of Operating Results

Net premiums written in the second quarter totaled $(0.2) million, $28.0 million, or 101%, below the $27.8 million of net premiums written in the second quarter of 2007. Included in the decrease in net premiums written for the quarter is $10.2 million of premium returned on certain policies commuted with two of our ceding companies. Total par outstanding on such commuted policies was $1 billion. The balance of the decrease is the result of a decline in the amount of cessions from our current customers and a reduction in the number of quota share treaty customers from six to two. For the first six months of 2008, net premiums written of $16.5 million were $32.0 million, or 66%, below the $48.5 million in the first six months of 2007. The Company currently has one retrocessional agreement in place and during the first six months of 2008 ceded premiums of $1.0 million pursuant to that agreement, compared to $nil in the comparable period in 2007.

Earned premiums in the quarter of $19.5 million were 63% greater than the $12.0 million earned in the second quarter of 2007. By eliminating accelerated premiums from refundings of $9.0 million from total earned premiums, "core" earned premiums in the second quarter were comparable to the 2007 period. For the first six months of 2008, earned premiums were $32.7 million, 33% more than the $24.6 million in 2007, or a 9% increase after excluding accelerated premiums from refundings of $9.6 million and $3.5 million, respectively. Additionally, earned premiums for the second quarter and first six months of 2008 reflect a reduction of $1.8 million as a result of the commutations finalized in the quarter, discussed previously under net premiums written above.

Net change in fair value of credit derivatives was $154.2 million in the quarter, $153.0 million more than the $1.2 million in the second quarter of 2007. Net change in fair value of credit derivatives for the second quarter of 2008 and 2007 primarily related to $151.5 million and immaterial unrealized gains/(losses) on derivatives, respectively, and $2.7 million and $1.2 million of realized gains, respectively. The gain on the credit derivatives related primarily to a widening of RAM Re's estimated spread. In compliance with the requirements of FAS 157, the Company considered its own non-performance risk when measuring the fair value of its derivative liability. The effect of this requirement was a reduction in the Company's derivative liability of approximately $323.7 million at June 30, 2008. Of the gross unrealized losses on credit derivatives, $143.5 million relates to gross credit impairments, a non-GAAP measure, (including $120.0 million of impairments on the subsequently commuted XLFA ABS CDOs). For the first six months of 2008 and 2007, net change in fair value of credit derivatives were ($9.5) million and $2.1 million, respectively.

Net investment income for the quarter was $8.3 million, 1% below the $8.4 million recorded in the second quarter of 2007. For the first six months, investment income of $16.5 million was $0.5 million, or 3% greater than the comparable period in 2007. The growth in investment income in 2008 over the prior year is the result of a 10% increase in cash and invested assets compared to second quarter 2007, offset by a decrease in book yield from 5.10% to 4.85%. The increase is primarily related to additional cash flow from operations which resulted from the increase in premiums written for the past four quarters. Realized gains (losses) on investments were $0.7 million and $(0.2) million in the second quarter and year to date 2008, respectively, compared to immaterial losses for the comparable 2007 periods. During the first six months of 2008, we realized losses of $1.3 million relating to an "other than temporary" impairment on one security that is backed by subprime RMBS. We have two other investments with subprime exposure with a fair value of $0.3 million, but we do not believe these two subprime investments to be impaired. Subsequent to June 30, 2008, we paid $94.4 million from proceeds of sales on the investment portfolio resulting in a net gain of $0.2 million, which included $0.5 million of investments that were in a loss position as at June 30, 2008.

Losses and loss adjustment expenses were $45.8 million in the 2008 second quarter, contributing to a loss ratio of 235.0%. This loss ratio is the result of an increase of $29.6 million in loss reserves net of recoverables due to the adverse development on the Company's exposure to insured transactions with RMBS exposures (HELOCs, Alt-A, and CES transactions). This compares to $0.9 million of incurred losses in the comparable 2007 period. Loss and loss adjustment expenses for the first six months of 2008 was $83.3 million compared to immaterial recoveries for comparable 2007 period.

Acquisition expenses of $6.8 million in the second quarter are closely related to earned premiums. The second quarter 2008 ratio of acquisition expenses to earned premium was 34.8% compared to 36.4% for the second quarter 2007. Second quarter operating expenses of $4.0 million were $0.3 million, or 8.1% above the level in the second quarter of 2007. The increase was due to additional expenses relating to our D&O insurance coverage and increased legal and audit expenses. Combining acquisition and operating expenses as a percentage of earned premiums, RAM's total expense ratio was 55.3% in the second quarter of 2008 compared to 66.8% in the second quarter of 2007.

Interest expense of $3.5 million in both the second quarter of 2008 and 2007, includes dividends on the preference shares issued by the Company of $2.8 million and interest on long term debt of $0.7 million.

Balance Sheet

Total assets of $864.7 million at June 30, 2008 were $4.5 million, or 0.5%, above the level at year-end 2007. Shareholders' equity of $181.0 million is ($71.4) million or, 28.3%, below the level at December 31, 2007, which relates to increased losses on RMBS policies and changes in fair value of credit derivatives from the continued deterioration of ABS CDOs. Book value per share is $6.64, a decrease of 28.3% from year-end 2007. Operating book value and adjusted operating book value per share, non-GAAP measures, were $6.97 and $18.92 at June 30, 2008, a decrease of 45.8% and 21.7%, respectively, from year-end 2007.

Cash available at the holding company amounted to $6.2 million at June 30, 2008, which represents debt service and funds available for non-mandatory preferred dividends of the holding company for the remainder of 2008. RAM expects to dividend the amount needed for holding company obligations in 2009 in late 2008 or early 2009, subject to Board determination in accordance with Bermuda law restrictions as described in our Form 10-K.

GAMING PARTNERS INTERNATIONAL CORPORATION (NASDAQ: GPIC | Quote | Chart | News | PowerRating) "Up 15.41% in morning trading"

Detailed Quote: http://www.otcpicks.com/quotes/GPIC.php

Gaming Partners International Corporation manufactures and supplies casino table game equipments worldwide. It offers gaming chips, table layouts, playing cards, gaming furniture, dice, radio frequency identification device (RFID) readers and software, and roulette wheels. The company also provides various table accessories, such as chip trays, drop boxes, and dealing shoes, which are used in conjunction with casino table games that include blackjack, poker, baccarat, craps, and roulette. It sells its products directly to end-users, as well as through distributors. In addition, the company sells its non-casino poker chips to a wholesaler in the United States and distributors in Europe. Gaming Partners International was founded in 1963 and is headquartered in Las Vegas, Nevada.

GPIC News:

August 14 - Gaming Partners International Reports Financial Results for the Second Quarter and First Six Months of 2008

Gaming Partners International Corporation (Nasdaq: GPIC), the leading worldwide provider of casino currency and table gaming equipment, today announced financial results for the second quarter and first six months of 2008.

For the second quarter of 2008, the Company reported revenues of $18.9 million, which were up 28% compared to revenues of $14.8 million for the second quarter of 2007. The increase in revenues was due to sales of casino chips to newly opened casinos in the United States, such as the MGM Grand at Foxwoods, the strengthening of the euro against the dollar, and increased sales of gaming chips to casinos in Macau. Gross profit for the quarter was $6.5 million, or 34% of revenues, compared to $4.6 million, or 31% of revenues, in the same period a year ago.

Net income for the second quarter of 2008 was $1.8 million, or $0.23 per basic and diluted share, and up 320% compared to a net income of $0.4 million, or $0.05 per basic and diluted share, in the second quarter of 2007.

For the six months ended June 30, 2008, revenues were $31.0 million, which were up 31% compared to revenues of $23.7 million in the first six months of 2007. The increase was attributable to the same factors as those for the second quarter increase. Gross profit for the period was $10.3 million, or 33% of revenues, compared to $6.2 million, or 26% of revenues, in the comparable period in 2007.

Net income for the six months ended June 30, 2008 was $1.4 million, or $0.18 per basic and diluted share, compared to net loss of $1.0 million, or $(0.13) per basic and diluted share, for the six months ended June 30, 2007.

As of June 30, 2008, the Company had cash and marketable securities of $12.3 million, compared to $9.4 million, as of December 31, 2007.

As of June 30, 2008, the Company had $38.1 million of stockholders' equity, compared to $35.2 million, as of December 31, 2007.

As of June 30, 2008, our backlog of unfilled orders, which are expected to be filled in 2008, was $13.7 million. At June 30, 2007, our backlog was $17.6 million.

Commenting on the results, Gerard Charlier, President and CEO, said, "We are pleased with our second quarter 2008 profit of $1.8 million. Several things went well for us in the quarter, but our success was largely driven by higher sales of casino chips. We were also very pleased that the French Tax Administration reversed its position on a tax matter, which not only relieved us of a potential liability of approximately $800,000, but also allowed us to reverse an accrual, which reduced our tax expense this quarter by $208,000.

"In the second quarter, we completed our move of our plastic injection molded Bud Jones chips from Las Vegas to our facility in Mexico. This is one step we have taken to reduce costs and improve our profitability in order to address the challenge of our variable revenue stream.

"I am also pleased that our French subsidiary, GPI SAS, achieved ISO 9001 certification in July. We think this external validation of our quality procedures will be well received by our international customers."

TRX INCORPORATED (NASDAQ: TRXI | Quote | Chart | News | PowerRating) "Up 0.93% in morning trading"

Detailed Quote: http://www.otcpicks.com/quotes/TRXI.php TRX, Inc., a technology company, develops and hosts software applications to automate manual processes and track transaction data in the travel industry. Its suite of products and services comprise TRAVELTRAX that provides reporting through a Web-based data reporting tool; CORREX, which enables automated quality control, file finishing, and electronic ticketing, including low fare searches, seat assignments, upgrades, and alternate route and carrier searches; and TRANXACT tools that handles various activities for its clients, including exchanges, refunds, waivers and split payments, commission management, fare loading, document distribution, debit memo processing, and back office hosting and settlement. The company also offers SELEX tools, a software functionality for exception processing, and agent workflow management and tracking; and RESX, a Web-based travel booking application that enables travelers and travel arrangers to create policy-compliant air, car, and hotel reservations. In addition, it provides DATATRAX, a data reporting suite that consolidates data records from various sources, including credit card issuers, credit card networks, back office travel systems, hotel suppliers, airlines, and global distribution systems, as well as normalizes those records into a common structure in a single data repository. The company delivers its technology applications as a service over the Internet to travel agencies, corporations, travel suppliers, government agencies, credit card associations, credit card issuing banks, and third-party administrators in North America, Europe, and Asia. TRX was incorporated in 1999 and is headquartered in Atlanta, Georgia.

TRXI News:

August 14 - TRX Reports Second Quarter 2008 Results

TRX, Inc. (Nasdaq: TRXI), a global technology company that develops and hosts software applications to process data records and automate manual processes, reported financial results for the quarter ended 30 June 2008.

Total revenues excluding client reimbursements for the second quarter of 2008 were $37.5 million compared with $24.5 million in the second quarter of 2007. Net income for the second quarter was $13.1 million compared with net loss of ($0.4) million in the second quarter of 2007. Net income per diluted share was $0.71 compared to net loss per diluted share of ($0.02) for the second quarter of 2007.

Revenues from transaction processing services for the second quarter of 2008 decreased to $16.5 million from $17.7 million in the second quarter of 2007. Revenues from data reporting services were $21.0 million, compared with $6.8 million in the prior year.

Adjusted revenues for the second quarter of 2008 were $27.6 million compared with $24.5 million in the second quarter of 2007. Adjusted revenues from data reporting services were $11.0 million, compared with $6.8 million in the second quarter of 2007. Adjusted revenues exclude $10.0 million of recurring data reporting services provided to Citibank which were required to be deferred under US GAAP until the Company's sale of a non-exclusive DATATRAX license. The license sale occurred on April 30, 2008. Adjusted EBITDA was $6.0 million for the quarter, compared with $2.7 million in the second quarter of 2007.

"Our business is delivering as expected thus far in 2008," said TRX President & CEO Trip Davis. "Our team did a great job assisting Citibank in migrating their platform this quarter, delivering $4.5 million for our stakeholders. The Citibank relationship continues to be an important one for us, and this new phase is off to a good start. Organic volumes in transaction processing are moderating in this tough economic environment, as we expected, and we continue to project that data reporting and new client additions will largely offset those challenges this year."

Based upon its expectations, TRX reiterated its guidance for fiscal 2008, inclusive of the $4.5 million DATATRAX license sale referred to above:

- Adjusted revenues of $92 to $95 million, of which $20 to $23 million is from data reporting.

- Adjusted EBITDA of $8 to $10 million.

- Capital expenditures of $7 to $8 million.

Use of Non-GAAP Financial Measures

TRX provides financial measures and terms not calculated in accordance with accounting principles generally accepted in the United States (GAAP). Presentation of non-GAAP measures such as Adjusted Revenue, Adjusted Data Reporting Revenue, EBITDA and Adjusted EBITDA provide investors with an alternative method for assessing our operating results in a manner that enables investors to more thoroughly evaluate.

CRUISECAM INTERNATIONAL INCORPORATED (OTC: CCMJ | Quote | Chart | News | PowerRating) "Up 120.00% in morning trading"

Detailed Quote: http://www.otcpicks.com/quotes/CCMJ.php

CruiseCam International, through its two operating subsidiaries, develops and markets integrated, "in-car" camera mount and recording systems for law enforcement, consumer, commercial and transportation applications, as well as for competition racing cars. The Company's patented technology and industry-first "Cruisecam" offering have been developed since 1996, and are distributed nationwide. For more information, visit www.cruisecam.com.

CCMJ News:

August 14 - CruiseCam International Moves Forward With Corporate Merger

CruiseCam International, Inc. (OTC: CCMJ | Quote | Chart | News | PowerRating) reported that the timeline for the merger remains intact. Merger negotiations have met expectations.

CruiseCam asks its shareholders to understand that this is a very busy time for CruiseCam management. Because of the intensity of ongoing company activity a press release announcing recent positive non-merger developments will be delayed until Monday. Because of these developments the company is confident that it will achieve revenue projections.

The share structure remains unchanged.

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OTCPicks.com is an Internet destination for investors seeking information on smallcap and microcap companies. The web site features companies in Profile Campaigns, Executive Interviews and Profile Research Reports authored by our financial writers. We publish a daily Newsletter to subscribers, and we publish our Daily Market Movers Digest which is sent out on the M2 Presswire several times daily highlighting hot OTC and OTCBB stocks. To feature a company on our web site or in our daily Newsletter or Market Mover's Digest, please contact our publisher, Brian Dean at 972-546-3740, or via email at publisher@otcpicks.com.

Disclaimer: Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. This disclaimer is to be read and fully understood before using our site, or joining our email list. PLEASE NOTE: The OTCPicks.com employees are NOT Registered as an Investment Advisor in any jurisdiction whatsoever.

Release of Liability: Through use of this website viewing or using you agree to hold OTCPicks.com, its operators owners and employees harmless and to completely release them from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur. Neither the information presented nor any statement or expression of opinion, or any other matter herein, directly or indirectly constitutes a representation by the publisher nor a solicitation of the purchase or sale of any securities. OTCPicks is receiving twelve thousand shares from a third party (Windermere Capital Partners) for GNAU advertising and promotion services. OTCPicks.com has been compensated two hundred thousand free trading shares by a third party (Pine Mountain Ventures) for this current SPNG IR program. OTCPicks.com has been compensated in the past for SPNG IR services including seventeen thousand dollars by the company and four hundred thousand free trading shares by a non-controlling third party for multiple 30-day SPNG IR programs. For a complete list of disclosures go to http://www.otcpicks.com/disclosure-details.htm. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data. The owner, publisher, editor and their associates are not responsible for errors and omissions. They may from time to time have a position in the securities mentioned herein and may increase or decrease such positions without notice. Any opinions expressed are subject to change without notice. OTCPicks.com encourages readers and investors to supplement the information in these reports with independent research and other professional advice. All information on featured companies is provided by the companies profiled, or is available from public sources and OTCPicks.com makes no representations, warranties or guarantees as to the accuracy or completeness of the disclosure by the profiled companies or the information contained herein. OTCPicks.com and its affiliates are not registered investment advisors or a broker dealers. OTCPicks.com has been advised that the investments in companies profiled are considered to be high risk and use of the information provided is at the investor's sole risk. OTCPicks.com also advises that the purchase of such high risk securities may result in the loss of some or all of the investment. Investors should not rely solely on the information presented. Rather, investors should use the information provided by the profiled companies as a starting point for doing additional independent research on the profiled companies in order to allow the investor to form his or her own opinion regarding investing in the profiled companies. Factual statements made by the profiled companies are made as of the date stated and are subject to change without notice. Investing in micro-cap securities is highly speculative and carries an extremely high degree of risk. It is possible that an investor's entire investment may be lost or impaired due to the speculative nature of the companies profiled. OTCPicks.com makes no recommendation that the securities of the companies profiled should be purchased, sold or held by individuals or entities that learn of the profiled companies through OTCPicks.com. OTCPicks.com owners may or may not hold positions in the companies that are profiled.

The information contained herein contains forward-looking information within the meaning of Section 27A of the Securities Act of 1993 and Section 21E of the Securities Exchange Act of 1934 including statements regarding expected continual growth of the company and the value of its securities. In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 it is hereby noted that statements contained herein that look forward in time which include everything other than historical information, involve risk and uncertainties that may affect the company's actual results of operation. Factors that could cause actual results to differ include the size and growth of the market for the company's products, the company's ability to fund its capital requirements in the near term and in the long term, pricing pressures, unforeseen and/or unexpected circumstances in happenings, pricing pressures, etc. Investing in securities is speculative and carries risk. Past performance does not guarantee future results.

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CONTACT: Brian Dean, Publisher, OTCPicks.com Tel: +1 972 546 3740 e-mail: publisher@otcpicks.com

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