Wednesday's Small-Cap Winners & Losers

Transcend Services (TRCR Quote) was surging nearly 40% after the medical-transcription company swung to a profit in both the fourth quarter. For the quarter, profits totaled $762,000, or a dime a share, compared with a loss of $444,000, or 6 cents a share, a year ago. Revenue rose 23% from last year to $9 million. Shares were up $1.73 to $6.08.

Digital Music Group (DMGI Quote) ballooned on news that the Sacramento, Calif.-based company, which buys, digitally processes and redistributes audio and video recordings, has struck a three-year deal to have its video files sold through Apple's (AAPL Quote) iTunes store. Specific monetary terms weren't disclosed, but Apple will pay DMG "fixed wholesale prices" for all video downloads and DMG will remain responsible for paying any necessary third-party royalties. DMG shares were rising 60 cents, or 15.9%, to $4.39. Apple was recently trading up $1.19, or 1.4%, to $86.89.

Vertrue (VTRU Quote) flew past Wall Street expectations for the quarter ended Dec. 31, posting earnings of $8.7 million, or 74 cents a share, up from $7.7 million, or 66 cents a share, a year ago. Analysts polled by Thomson Financial were looking for 64 cents. The Norwalk, Conn., Internet marketer's sales rose 12% to $178.6 million, slightly under the $180 million consensus. Shares were adding $3.76, or 9.4%, to $43.88.

Rockwell Medical Technologies (RMTI Quote) jumped after it announced success in preclinical animal studies testing the safety of its iron-delivery compound soluble ferric pyrophosphate. The compound is meant to maintain iron balance in patients undergoing dialysis treatment for end-stage renal disease. Shares were gaining 54 cents, or 9.7%, to $6.09.