Evolved breaks even in Q2

Evolved Digital Systems Inc. last week announced its results for the quarter and six months ended June 30, 2005.

Revenues for the six months ended June 30, 2005 were $8.6 million as compared to revenues of $8.5 million for the first six months of 2004. The company credits the increased of $0.7 million to revenue from an Original Equipment Manufacturer (OEM) development agreement established during the end of the second quarter of 2004 and related to growth in technology services revenue among the company's existing customer base. The increase in revenue was partially offset by a decrease of $0.3 million related to the timing of equipment sales and a decline in transcription revenue, Evolved said.

Revenues for the second quarter 2005 totaled $4.1 million, down 6.7 percent compared to revenues of $4.4 million for the same period in 2004. Excluding the effect of exchange rate fluctuation, revenues for the second quarter of 2005 were flat compared to the second quarter of 2004. While revenue from the OEM development agreement caused an increase in 2005 revenues of $0.4 million, this increase was offset by a decline in volume from existing customers related to technology services and transcription revenue.

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