- Quarterly revenues increase by 30.6% over prior year period -
HOUSTON, Feb. 17 /PRNewswire-FirstCall/ -- US Dataworks, Inc.
(AMEX:UDW), a leading developer of payment processing solutions,
today announced its financial results for its fiscal 2009 third
quarter and for the nine months ended December 31, 2008. Revenues
for the quarter ended December 31, 2008 were $2,000,011,
representing a 30.6% increase over revenues of $1,531,229 for the
same period a year ago. Income from operations for the third
quarter was $360,026, compared to a loss from operations of
$6,399,131 for the same period a year ago (and compared to a loss
from operations of $466,947 for the same period a year ago
excluding a one-time charge for goodwill impairment recorded in
such earlier quarter). Net income for the third quarter was
$133,850, or $0.00 per share, compared to a net loss of $5,551,203,
or $(0.17) per share, for the same period a year ago (and compared
to net income of $380,981, or $0.01 per share, excluding the
one-time charge for goodwill impairment recorded in such earlier
quarter). Revenues for the nine months ended December 31, 2008 were
$6,099,797, representing a 47.8% increase over revenues of
$4,126,385 for the same period a year ago. Income from operations
for the nine months ended was $629,876, compared to an operating
loss of $8,067,648 for the same period a year ago (and compared to
a loss from operations of $2,135,646 excluding the one-time charge
for goodwill impairment recorded in such earlier quarter). Net loss
for the third quarter was $1,817,326, or $(0.06) per share,
compared to a net loss of $7,226,223, or $(0.23) per share, for the
same period a year ago (and compared to a net loss of $1,334,326,
or $(0.04) per share, excluding the one-time charge for goodwill
impairment recorded in such earlier period). Contributing to the
net loss for the nine months ended December 31, 2008 was the
$1,747,791 non-cash interest expense recorded in the fiscal 2009
second quarter due to the repayment of certain outstanding
convertible promissory notes during that quarter. The Company
recorded an original issue discount when the notes were first
issued reflecting the value of the conversion feature of the notes
and the warrants that were issued with the notes. The amount of
such discount that remained at the time the notes were repaid in
full during that quarter was fully expensed at that time. This
charge represents a significant portion of the decrease in other
income for the nine months ended December 30, 2008 as compared to
the same period a year ago. Charles E. Ramey, Chairman and CEO of
the Company stated, "We are pleased with our third quarter results
which were profitable on an operating and net income basis. Leading
the strength were transactional and professional service revenues,
which increased by 21% and 80%, respectively, over the
transactional and professional service revenues for the same period
a year ago. The increase in transactional revenues was principally
due to an increase in the number of customers subject to
transactional pricing combined with an increase in transactions
processed by our current client base. Professional service revenue
rose due to our contract with a major credit card company that
began in February 2008." Mr. Ramey added, "The announcement of
today's financial results demonstrates that the initiatives taken
earlier in the fiscal year have proven effective, enabling the
Company to post net income of $133,850 for the third quarter. While
the economic slowdown in the U.S. has certainly crimped credit
lines and hindered the general flow of capital, we are well
positioned to weather the storm, as seen in the third quarter
results. We have restructured the Company to significantly lower
costs while at the same time working diligently to retain existing
clients as well as attract new ones. The combination of these
factors led to our recent financial success. While we are very
pleased with the quarter's performance, we remain cautiously
optimistic about the future. We believe that the formula
implemented for the Company's turnaround has proven successful and
will continue to strive to improve results by growing the business
while supporting the current clientele, which have enabled the
Company to achieve profitability." Conference Call Information A
conference call is scheduled for today, at 11:00 AM EST. Interested
parties may participate in the call by dialing (877) 869-3847;
international callers dial (201) 689-8261 about 5-10 minutes prior
to 11:00 AM EST. The conference call will also be available on
replay starting at 1:00 pm EST on February 17, 2009, and ending on
March 17, 2009. For the replay, please dial (877) 660-6853 (replay
account # 269, replay conference # 313698). The access number for
the replay for international callers is (201) 612-7415 (replay
account # 269, replay conference # 313698). About US Dataworks,
Inc. 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. Additional information about US Dataworks is
available at http://www.usdataworks.com/. Certain statements made
in this press release (other than the historical information
contained herein) constitute "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995, as amended, including, but not limited to, statements
regarding our expectation of continued growth, the benefits of our
recent restructuring, the anticipated features and benefits of our
new distribution payment capture solution, our vision for payment
processing and our new solutions' ability to provide a higher
return on investment for our clients. Any forward-looking
statements are subject to risks and uncertainties that may cause
actual results to differ materially, including, but not limited to,
the failure of our new solution to perform as anticipated, our
ability to provide long-term customer value and agility, our
ability to protect our intellectual property, the Company's
position in the marketplace, its ability to develop and timely
introduce products that address market demand, the impact of
alternative technological advances and competitive products, market
fluctuations and other risks detailed from time to time in the SEC
reports of US Dataworks, including its annual report on Form 10-KSB
for the period ended March 31, 2008 and its quarterly reports on
Form 10-Q for the periods ended September 30, 2008 and December 31,
2008. These forward-looking statements speak only as of the date
hereof. US Dataworks disclaims any obligation to update these
forward-looking statements. CONTACTS: Charles Ramey, CEO Donald C.
Weinberger US Dataworks, Inc. Wolfe Axelrod Weinberger Assoc. LLC
Tel. (281) 504-8100 Tel. (212) 370-4500 Fax (212) 370-4505 -
Financial Tables Follow - US DATAWORKS, INC. QUARTERLY INCOME
STATEMENT DATA (UNAUDITED) Three months ended Nine months ended
December 31, December 31, 2008 2007 2008 2007 Revenues Software
licensing revenues 36,508 182,911 66,508 289,833 Software
transactional revenues 540,787 445,654 1,601,291 1,225,043 Software
maintenance revenues 217,775 233,010 666,257 658,019 Software
service revenues 1,204,941 669,654 3,765,741 1,953,490 Net Revenue
2,000,011 1,531,229 6,099,797 4,126,385 Cost of sales 564,257
574,230 1,607,517 1,469,312 Gross profit 1,435,754 956,999
4,492,280 2,657,073 Operating Expenses General and administrative
1,028,983 1,375,756 3,719,426 4,659,534 Depreciation and
amortization 46,745 48,190 142,978 133,003 Goodwill Impairment -
5,932,184 - 5,932,184 1,075,728 7,356,130 3,862,404 10,724,721
Operating income/(loss) 360,026 (6,399,131) 629,876 (8,067,648)
Other income (expense) Financing costs - (86,704) (329,692)
(112,680) Interest expense (109,601) (157,721) (2,603,020)
(170,524) Interest expense - related parties (128,197) (14,714)
(207,026) (36,589) Loss on disposition of assets - - - (44,231)
Gain/(Loss) on Derivatives - 1,099,284 621,281 1,157,666 Other
income (expense) 11,622 7,783 71,255 7,783 (226,176) 847,928
(2,447,202) 801,425 Income/(loss) before provision for income taxes
133,850 (5,551,203) (1,817,326) (7,266,223) Provision for income
taxes - - - - Net Income/(Loss) $133,850 $(5,551,203) $(1,817,326)
$(7,266,223) Basic and diluted gain/(loss) per share $0.00 $(0.17)
$(0.06) $(0.23) Basic and diluted weighted - average (adjusted for
reverse stock split 1:5) shares outstanding 32,569,017 32,062,962
32,361,717 31,638,735 US DATAWORKS, INC. Quarterly Balance Sheet
Analysis For the quarter ended December 31, 2008 (UNAUDITED) ASSETS
December 31, 2008 Current assets Cash and cash equivalents $505,826
Accounts receivable, trade 939,753 Prepaid expenses and other
current assets 88,153 Total current assets 1,533,732 Property and
equipment, net 350,248 Goodwill, net 4,020,698 Other assets 302,523
Total assets $6,207,201 LIABILITIES AND SHAREHOLDERS EQUITY Current
liabilities Notes payable, current $35,279 Note payable - related
party 4,203,500 Deferred revenue 339,456 Accounts payable 267,648
Accrued expenses 172,046 Accrued Interest - related party 70,902
Total current liabilities 5,088,831 Long term note payable 26,459
Total long term liabilities 26,459 Total liabilities 5,115,290
Shareholders' equity Convertible series B preferred stock, 0001 par
55 Common Stock. 0001 par 3,260 Additional paid in capital
64,997,162 Accumulated deficit (63,908,566) Total shareholders'
equity 1,091,911 Total liabilities and shareholders' equity
$6,207,201 DATASOURCE: US Dataworks, Inc. CONTACT: Charles Ramey,
CEO of US Dataworks, Inc., +1-281-504-8100, or Donald C. Weinberger
of Wolfe Axelrod Weinberger Assoc. LLC, +1-212-370-4500, or fax,
+1-212-370-4505 Web Site: http://www.usdataworks.com/
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