2nd Quarter Revenue & EPS Guidance, ETC
Charles Ramey said that they expect to generate $1.4 to $1.9 million in revenue and a loss of $0.02 for the 2nd quarter and maintained annual guidance of $7.8 - $8.2 million with +.03 eps. Until transactional volumes increase quarterly earnings will not be stable.
The top line growth is good and I expect that they are close to critcal mass in transactions processed, but given their track record with eps guidance it is my opinion that the bottom line could be worse than $0.02 loss for the next qtr but who knows.
Disclosure - I'm holding on for long term gain - projecting that UDW will be trading at $2.50 - $3.50 in 8-11 months unless they are acquired before then. Interested investors are encouraged to perform their own DD (Due-Diligence) so that an informed investment decision may be made regarding this highly speculative stock.
Just look at the valuations assigned to other players in the ECC (Electronic Check Conversion) marketplace.
finance.yahoo.com
Lets not forget other competitors - Wausau Financial Systems, J&B Software, Nova, Metavante, Data Treasury, ACH Direct and Alogent as they do not seem to be publicly traded.
Nova - novainfo.com
Wausau - wausaufs.com
JB Software - jbsoftware.com
Metavante - metavante.com
Data Treasury - datatreasury.com
ACH Direct - achdirect.com
Alogent - alogent.com
I find it interesting to note that Chuck Ramey said that he expects significant consolidation of the ECC remittance industry players to take place in the very near future.
Some players have divested themselves of non-core divisions to become attractive acquisition targets and or hired outside brokers to research strategic alternatices. The three that come to mind are Trintech (TTPA), LML Payment Syatems (LMLP), and S1 Corp (SONE). S1 and TTPA have recently sold off units for some big bucks - could they be an acquirer or acquiree while LML has hired an outside firm to facilitate a merger/acquisition.
finance.yahoo.com
Recent development include...
WOW - Charles Ramey, CEO, sure has placed one huge bet on the future success of his company - US Dataworks with his recent unsecured loan to the corporation from his personal funds. IMHO he is in the best position to know what the future holds. This is a real positive indicator of good things to come. Way to go Chuck!
Doesn't look like UDW has any immediate need for cash now that they have an additional $805,350.00 in the bank.
sec.gov
Item 1.01. Entry into a Material Definitive Agreement.
On September 26, 2006, Charles E. Ramey, Chief Executive Officer of US Dataworks, Inc. (the “Company”), loaned the Company five hundred thousand dollars ($500,000) pursuant to an unsecured promissory note dated September 24, 2006 (the “Note”). The Note bears an interest rate of 8.75% per annum and has a maturity date of September 25, 2007.
On September 27, 2006, the Company entered into a Purchase and Sale Agreement with Catalyst Finance, L.P. (“Catalyst”) for sale of certain of its accounts receivables. The Company’s borrowing costs under this Agreement range from 1.25% to 20% of the gross amount of the receivables sold to Catalyst based on the timing of collection. To date, the Company has sold $305,350 in accounts receivable. The Agreement will continue in effect until terminated by either party.
Following commentary provided by maddogmadden2004 from the Yahoo! UDW Message Board....
UDW is well-positioned for the future. I like the alliances they have made and the contracts they have "announced" this calender year so far:
1) Chosen by one the nation's leading retailers to provide ARC software.
2) Installation of Clearingworks to process telephone payments for one of the largest CC companies.
3) Contract with Bank of Oklahoma.
4) Strategic alliance with nation's largest financial transaction processor (Paymentech is expected to process app. 13 billion transaction this year). (see paymentech.com
5) Strategic alliance with ORCC, a leading provider of financial tech services to over 800 fin. institutions.
6) Contract with Midwest Ind. Bank, who provides banking services to app. 450 fin. institutions, to provide Clearingworks.
I hope that there are a few more this calender year. As I have been saying, I think BOC will be pretty big. I liked that quote regarding 5 billion BOC transactions in the next three years. Maybe we are going to have to wait till early 2007 for a run up.
Best O'Luck,
Dow18K |
