US Dataworks, Inc. Announces Profitable Third Quarter Financial Results
Quarterly revenues increase by 30.6% over prior year period
HOUSTON, Feb 17, 2009 /PRNewswire-FirstCall via COMTEX News Network/ -- 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." |
