US Dataworks Reports Fiscal 2006 Second Quarter Results
Thursday October 27, 4:00 pm ET
Profitability Milestone and Record Revenues Achieved; Raises Revenue and Earnings Guidance
HOUSTON, Oct. 27 /PRNewswire-FirstCall/ -- US Dataworks (Amex: UDW - News), a leading developer of payment processing solutions, today announced financial results for its fiscal 2006 second quarter ended September 30, 2005.
Revenues for the fiscal 2006 second quarter were $2,732,000 compared with revenues of $610,000 for the same period a year ago. Income from operations for the quarter was $886,000 compared to a loss from operations of $1,168,000 for the quarter ended September 30, 2004. Net income for the second quarter was $791,000 or $0.03 per share, compared to a net loss of $2,302,000 or $0.09 per share, for the corresponding period in the prior year. The net loss for last year's second quarter included a non-recurring, non-cash charge of $1,000,000 in connection with management's estimates of costs necessary to settle a lawsuit filed by an investor. This lawsuit was settled in November 2004.
Revenues for the second quarter in the current fiscal year 2006 include approximately $2,028,000 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, revenues attributable to this integrated contract are being recorded on a percentage-of-completion basis.
"We are pleased to report record quarterly revenues and our first profitable quarter of operations," stated Charles E. Ramey, CEO of US Dataworks. "These financial results are a result of the outstanding work performed by our dedicated staff of professionals over the last 2 years in conceiving and bringing Clearingworks(TM) to market. Customers are now confirming the fact that Clearingworks offers unmatched value and performance in payment processing. We believe the ability of Clearingworks to process all payments including mailed remittances, Internet payments, telephone payments and transactions captured at worldwide remote offices will drive customers to select us as a single-source provider.
"We are also encouraged by the recent progress attained in ongoing discussions with retailers and potential strategic partners serving the retail market. Our recently released white paper (http://www.usdataworks.com/whitepapers/boc_whitepaper.html ) shows that Electronification(SR) of payment processes in the retail space yields compelling cost savings. We are optimistic of our abilities to capitalize on significant revenue growth opportunities in this very important vertical," 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 third quarter of fiscal 2006 to range from $1.4 million to $1.6 million and loss per share to be approximately $(0.01). For the full fiscal year ending March 31, 2006, the company is raising guidance and expect revenues to range from $6.2 million to $6.7 million and loss per share to be between ($0.02) and ($0.03) excluding any one-time charges. |
