MedQuist 1st-quarter net income rises 7 percent, as operating costs fall

MedQuist 1Q net income rises 7 pct on lower costs

MOUNT LAUREL, N.J. — MedQuist Inc. said Wednesday its first-quarter net income rose 7 percent as the medical transcription software and services provider cut costs.

MedQuist said its revenue dropped 6 percent mainly due to lower prices for transcription services and a decline in maintenance services for legacy products. Transcription volume rose.

The Mount Laurel, N.J., company said it earned $7.3 million, or 20 cents per share, in the three months that ended March 31 compared to $6.8 million, or 18 cents per share, in the first quarter of 2009.

Revenue fell to $74 million from $78.9 million a year ago.

MedQuist said operating costs and expenses dropped 7 percent to $66.6 million due mostly to cost reduction programs.

MedQuist said it reduced employee headcount last year and lowered transcription costs by increasing its use of speech recognition technology.

Its shares rose 20 cents, or 2.1 percent, to $9.79 in late-morning trading after rising to a 52-week high of $9.98 earlier in the session.