U.S. Wireless Data Reports Significant Progress in First Half of Fiscal 2001
BUSINESS WIRE - February 15, 2001 16:52
NEW YORK, Feb 15, 2001 (BUSINESS WIRE) --
U.S. Wireless Data, Inc. (USWD) (OTC:USWE), the leader in wireless payment transaction services, today released operating results for the first half of fiscal 2001, ended December 31, 2000.
Quarter Summary
USWD recorded a 3-fold increase in revenue to $333,000, compared
with $124,000 in the prior year's quarter. The results include
recurring services revenue of $320,000 and product revenue of $13,000.
For the same period last year, recurring services revenue and product
revenue accounted for $46,000 and for $78,000, respectively. The
company reported a net loss of ($0.36) per share compared with a
($0.39) per share net loss in the same period last year. On a pro
forma basis, before amortizations and other non-cash charges, the net
loss per share was ($0.28) compared with ($0.35) per share in the same
period last year.
Six-month Summary
For the first half, the company reported revenue of $484,000,
versus $261,000 in the prior year. Recurring revenues climbed to
$460,000 compared to $61,000 for the same period in fiscal year 2000,
over a 7-fold increase. The company reported a net loss, of ($0.71)
per share compared with an ($0.87) per share net loss in the same
period last year. On a pro forma basis, before amortizations and other
non-cash charges, the net loss per share was ($0.59) compared with a
($0.79) per share net loss in the same period last year.
The company has made significant progress on its key business
objectives. These objectives are intended to establish the company's
Synapse(sm) service as the standard for wireless and other IP-based
transaction processing services. Operating highlights include:
-- Signed sales channel agreements exceed 115 as of Feb.15
-- Wireless point-of-sale terminals using Synapse service exceed
5,000 as of Feb. 1
-- CellGate Technologies acquisition completed
-- NXT Corporation acquisition completed
-- Key additions to the senior management team
-- Improved Synapse platform infrastructure
-- Continued penetration of new vertical markets
"The last six months have been a period of substantial achievement
for us," said Chairman and CEO Dean M. Leavitt. "We have exceeded
expectations on nearly every front. We now have sales channel
agreements with almost every significant company in the transaction
processing industry. We have also completed acquisitions that expand
our business strategy to encompass the full range of IP-based
(Internet Protocol) transactions. IP-based transactions are emerging
as the standard for the modern, broadband communications network.
High-speed services such as our Synapse system use IP switching to
relay data over the wireless network. We are now expanding these
capabilities across all broadband media, including DSL, satellite, and
other types of `always-on' packet switching networks. We believe this
capability offers exciting new possibilities to extend the use of
credit card and other data transactions into a wide range of new
applications.
"Clearly, the pace of adding new units is expected to accelerate
as the year progresses. The first stage of our growth plan has been to
deploy our Synapse platform and to add sales channels. This stage is
nearly complete. The next step is utilization of our services by
merchants. This is where we are now turning our attention. We are
working closely with our sales channel partners to build usage among
the merchants and other end users."
USWD's sales channels include the major credit card processing
companies through which almost all card transactions are authorized
and settled. They, in turn, incorporate USWD's Synapse-based solutions
into the services used by merchants. Through these arrangements, USWD
now serves approximately 50,000 merchants, including 45,000 from the
acquisition of NXT. The company expects Synapse-based services to be
the primary source of future growth.
Discussing financial results, CFO Rick DeVincenzo said, "USWD has
almost $30 million in available cash, therefore we are well positioned
from a financial standpoint to capitalize on these opportunities
within the fixed and mobile wireless technologies. We will continue to
focus our internal investments on the key strategic objectives of
integrating and extending the Synapse platform, while closely
monitoring these resources and controlling our costs during this
execution phase of our strategy." |
