Profitability Milestone and Record Revenues Achieved; Raises
Revenue and Earnings Guidance HOUSTON, Oct. 27
/PRNewswire-FirstCall/ -- US Dataworks (AMEX:UDW), a leading
developer of payment processing solutions, today announced
financial results for its fiscal 2006 second quarter ended
September 30, 2005. Revenues for the fiscal 2006 second quarter
were $2,732,000 compared with revenues of $610,000 for the same
period a year ago. Income from operations for the quarter was
$886,000 compared to a loss from operations of $1,168,000 for the
quarter ended September 30, 2004. Net income for the second quarter
was $791,000 or $0.03 per share, compared to a net loss of
$2,302,000 or $0.09 per share, for the corresponding period in the
prior year. The net loss for last year's second quarter included a
non-recurring, non-cash charge of $1,000,000 in connection with
management's estimates of costs necessary to settle a lawsuit filed
by an investor. This lawsuit was settled in November 2004. Revenues
for the second quarter in the current fiscal year 2006 include
approximately $2,028,000 of license revenue and professional
service revenues attributable to a previously announced integrated
license, maintenance and services agreement with one of the
nation's largest financial services companies. In accordance with
generally accepted accounting principles, revenues attributable to
this integrated contract are being recorded on a
percentage-of-completion basis. "We are pleased to report record
quarterly revenues and our first profitable quarter of operations,"
stated Charles E. Ramey, CEO of US Dataworks. "These financial
results are a result of the outstanding work performed by our
dedicated staff of professionals over the last 2 years in
conceiving and bringing Clearingworks(TM) to market. Customers are
now confirming the fact that Clearingworks offers unmatched value
and performance in payment processing. We believe the ability of
Clearingworks to process all payments including mailed remittances,
Internet payments, telephone payments and transactions captured at
worldwide remote offices will drive customers to select us as a
single-source provider. "We are also encouraged by the recent
progress attained in ongoing discussions with retailers and
potential strategic partners serving the retail market. Our
recently released white paper
(http://www.usdataworks.com/whitepapers/boc_whitepaper.html ) shows
that Electronification(SR) of payment processes in the retail space
yields compelling cost savings. We are optimistic of our abilities
to capitalize on significant revenue growth opportunities in this
very important vertical," concluded Ramey. FY 2006 OUTLOOK The
following statements are based on current expectations. These
statements are forward-looking and actual results may differ
materially. US Dataworks expects revenues for the third quarter of
fiscal 2006 to range from $1.4 million to $1.6 million and loss per
share to be approximately $(0.01). For the full fiscal year ending
March 31, 2006, the company is raising guidance and expect revenues
to range from $6.2 million to $6.7 million and loss per share to be
between ($0.02) and ($0.03) excluding any one-time charges.
CONFERENCE CALL US Dataworks has scheduled a conference call for
today, October 27, 2005 at 5:00 p.m. eastern time. To participate
in the conference call, dial (303) 262-2138 at least ten minutes
before the call begins and ask for the US Dataworks conference
call. A replay of the call will be available approximately two
hours after the live broadcast ends and will be accessible until
November 6, 2005. To access the replay, dial (303) 590-3000 using a
pass code of 11042549. Investors, analysts and the general public
will also have the opportunity to listen to the conference call
over the Internet by visiting http://www.usdataworks.com/ . To
listen to the live call on the web, please visit the company's web
site at least fifteen minutes before the call begins to register,
download and install any necessary audio software. For those who
cannot listen to the live web cast, an archive will be available
shortly after the call. ABOUT US DATAWORKS US Dataworks is a
developer of payment processing solutions, focused on the Financial
Services market, Federal, State and local governments, billers and
retailers. Software developed by US Dataworks is designed to enable
organizations to transition from traditional paper-based payment
and billing processes to electronic solutions that automate
end-to-end processes for accepting and clearing checks. Except for
the historical information contained herein, the matters set forth
in this press release, including, but not limited to the Company's
leadership in the payment processing software market and the
increasing of our efforts toward capturing further market share in
the retail space are forward- looking statements within the meaning
of the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements are subject to
risks and uncertainties that may cause actual results to differ
materially, including, but not limited to, the Company's position
in the marketplace, our ability to develop and timely introduce
products that address market demand, the impact of alternative
technological advances and competitive products, market
fluctuations, our ability to obtain future financing and other
risks detailed from time to time in the SEC reports of US
Dataworks, Inc., including its annual report on Form 10-KSB/A for
the period ended March 31, 2005 and its quarterly report on Form
10-QSB for the period ended June 30, 2005. These forward-looking
statements speak only as of the date hereof. US Dataworks disclaims
any obligation to update these forward-looking statements. - Tables
to Follow - STATEMENTS OF OPERATIONS For the Three and Six Months
Ended September 30, 2005 and 2004 (UNAUDITED) For the Three For the
Six Months Ended Months Ended September 30, September 30, 2005 2004
2005 2004 Revenues Software licensing revenues $1,451,800 $153,016
$1,750,920 $500,732 Software transactional revenues 231,361 158,052
412,604 287,704 Software maintenance revenues 134,566 140,486
226,892 172,225 Professional service revenues 914,566 158,280
1,422,216 552,305 Total revenues 2,732,293 609,834 3,812,632
1,512,966 Cost of sales 405,355 202,512 782,856 518,648 Gross
profit 2,326,938 407,322 3,029,776 994,318 Operating expenses
General and administrative 1,351,247 1,493,420 2,905,522 2,963,323
Depreciation and amortization 89,957 81,646 178,482 155,772 Total
operating expense 1,441,204 1,575,066 3,084,004 3,119,095 Income
(loss) from operations 885,734 (1,167,744) (54,228) (2,124,777)
Other income (expense) Financing costs (76,658) (97,451) (88,362)
(419,903) Interest expense (27,605) (48,435) (51,538) (164,956)
Accrued costs of litigation settlement --- (1,000,000) ---
(1,000,000) Other income (expense) 9,419 11,228 16,218 17,687 Total
other income (expense) (94,844) (1,134,658) (123,682) (1,567,172)
Income (loss) before provision for income taxes 790,890 (2,302,402)
(177,910) (3,691,949) Provision for income taxes --- --- --- ---
Net income (loss) $790,890 $(2,302,402) $(177,910)$(3,691,949)
Basic and diluted earnings (loss) per share Total basic and diluted
earnings (loss) per share $0.03 $(0.09) $(0.01) $(0.14) Basic and
diluted weighted- average shares outstanding 30,037,020 26,852,288
29,369,865 26,184,768 BALANCE SHEET September 30, 2005 (UNAUDITED)
ASSETS Current assets Cash and cash equivalents $ 1,253,853
Accounts receivable, net of allowance for doubtful accounts of $0
927,411 Costs and estimated earnings in excess of billings on
uncompleted contracts 880,800 Prepaid expenses and other current
assets 336,422 Total current assets 3,398,486 Property and
equipment, net 571,116 Goodwill, net 14,133,629 Other assets 43,792
Total Assets $18,147,023 LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities Note payable- related party $ 39,000 Deferred
revenue 250,519 Accounts payable 163,732 Accrued expenses 263,230
Interest payable 3,262 Current portion of convertible notes
payable, net of unamortized discount of $464,693 201,440 Total
current liabilities 921,183 Long-term portion of convertible notes
payable, net of unamortized discount of $298,329 573,737 Deferred
revenue 16,690 Total liabilities 1,511,610 Commitments
Shareholders' equity Convertible Series B preferred stock, $0.0001
par value 700,000 shares authorized, 549,667 shares issued and
outstanding, $0.75 liquidation preference, dividends of $190,201 in
arrears 55 Common stock, $0.0001 par value 90,000,000 shares
authorized and 30,037,020 shares issued and outstanding 3,004
Additional paid-in capital 63,102,445 Accumulated deficit
(46,470,091) Total shareholders' equity 16,635,413 Total
Liabilities and Shareholders' Equity $18,147,023 Contacts: John
Reiland, CFO John Figone, VP-Business Development US Dataworks,
Inc. (713) 934-3855 http://www.usdataworks.com/ Ken Dennard,
Managing Partner DRG&E (713) 529-6600 DATASOURCE: US Dataworks,
Inc. CONTACT: John Reiland, CFO, or John Figone, VP-Business
Development, both of US Dataworks, Inc., +1-713-934-3855; or Ken
Dennard, Managing Partner of DRG&E, +1-713-529-6600, or , for
US Dataworks, Inc. Web site: http://www.usdataworks.com/
http://www.usdataworks.com/whitepapers/boc_whitepaper.html
Copyright
US Dataworks (AMEX:UDW)
Historical Stock Chart
From Jul 2024 to Jul 2024
US Dataworks (AMEX:UDW)
Historical Stock Chart
From Jul 2023 to Jul 2024