MedQuist income falls in Q2
MedQuist saw revenues and operating income fall in the second quarter of 2008, which ended June 30.

Revenue for the second quarter of 2008 was $82.5 million compared with $88.7 million in the second quarter of 2007. The 7 percent decrease in revenue of $6.2 million from the prior year period “was primarily due to customer losses experienced during the second half of 2007,” the Mount Laurel, N.J.-based company said.

Operating income for the quarter decreased to $1.8 million compared to $4.2 million in the second quarter of 2007. MedQuist reported that operating income in the second quarter of 2007 was positively impacted by the recognition of $11.9 million of insurance recoveries which were exhausted by the end of that year.

Selling general and administrative expenses declined $5.1 million to $12.8 million in the second quarter of 2008 compared to $17.9 million in the second quarter of 2007. The decline reflects both the unusually high expenses incurred in the second quarter of 2007 as the company worked to complete the audits of 2003-2006, as well as the benefits of the restructuring actions taken by the company during 2007, MedQuist reported.

As of the close of the quarter, the company had $151.1 million of cash and cash equivalents on hand and no debt. Subsequently, on Aug. 4, the company paid a cash dividend of $103.3 million.
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