US Dataworks Reports Fiscal 2006 Third Quarter Results; Nine Month Record Revenues Achieved
Thursday January 26, 4:00 pm ET
HOUSTON, Jan. 26 /PRNewswire-FirstCall/ -- US Dataworks (Amex: UDW - News), a leading developer of payment processing solutions, today announced financial results for its fiscal 2006 third quarter ended December 31, 2005.
Revenues for the fiscal 2006 third quarter were $1,087,000 compared with revenues of $518,000 for the same period a year ago. Operating loss for the quarter was $587,000 compared to an operating loss of $1,386,000 for the quarter ended December 31, 2004. Net loss for the third quarter was $875,000 or $0.03 per share, compared to a net loss of $1,320,000 or $0.05 per share, for the corresponding period in the prior year.
Revenues for the third quarter in the current fiscal year 2006 include approximately $448,000 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, license revenues attributable to this integrated contract are being recorded on a percentage-of-completion basis.
"We are pleased to report our third consecutive quarter with revenues in excess of $1 million and record revenues through nine months," stated Charles E. Ramey, CEO of US Dataworks. "The results for the quarter were below our prior guidance due to customer and third party delays related to a large contract that is being recorded on a percentage-of-completion basis. We expect these delayed revenues to be recorded during the next two quarters.
"We are also pleased with two additional competitive wins during the third quarter brought about by our direct sales efforts. We were chosen by one of the nation's leading retailers to provide our industry leading Accounts Receivable Conversion ("ARC") software. We were also selected and have installed our Clearingworks(TM) product to process telephone initiated payments for one of the nation's largest credit card processing companies.
"In addition, during the quarter we completed important strategic alliances with two much larger partners to jointly capitalize on what we perceive as a significant revenue opportunity in the retail sector as regulations are approved in the latter half of 2006 for 'back office conversion'. While maintaining existing 'in lane' business practices of accepting paper checks presented as payment at the cash register, back office conversion will allow retailers to convert these payments at a later time to electronic items and present them as electronic deposits to their financial institutions," 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 fourth quarter of fiscal 2006 to range from $1.3 million to $1.5 million and loss per share to be approximately $(0.01). For the full fiscal year ending March 31, 2006, the company expects revenues to range from $6.2 million to $6.4 million and loss per share to be approximately ($0.04). |
