U.S. Wireless Data Provides EBITDA Guidance; Expects to Reach EBITDA Breakeven in Fourth Quarter of Calendar Year 2002
NEW YORK--(BUSINESS WIRE)--Feb. 14, 2002--U.S. Wireless Data, Inc. (USWD) (OTC: USWE), the leader in transaction delivery and gateway services for the payment processing industry, expects to continue to generate significant revenue growth from its propriety Synapse(sm) services.
As a result, the company is expecting EBITDA loss to reach breakeven on a monthly basis during the quarter ending December 31, 2002, which corresponds to the second quarter of the company's fiscal year 2003. USWD's fiscal year 2003 begins July 1, 2002. EBITDA is defined as earnings before interest, taxes, depreciation, and amortization, and is a commonly used measure of cash operating results.
"In light of the positive current trends in revenue growth and our ongoing expense reductions, we are confident in forecasting EBITDA breakeven on a monthly basis by the end of the calendar year," said Chairman and CEO, Dean M. Leavitt. "With more than $9.0 million in cash in the bank, we believe we have adequate funding to reach this goal without the need for additional capital. The monthly cash usage rate is now under $700,000 and we expect it to decline each month. In addition, we have a number of opportunities that we are pursuing that may further reduce cash usage." |
