US Dataworks, Inc. Announces Fiscal Second Quarter Financial Results
Tuesday November 14, 8:30 am ET
HOUSTON, Nov. 14 /PRNewswire-FirstCall/ -- US Dataworks, Inc. (Amex: UDW - News), a leading developer of payment processing solutions, announced today financial results for its fiscal 2006 second quarter and six months results ended September 30, 2006.
Revenues for the second quarter ended September 30, 2006 were $1,821,673 compared with revenues of $2,732,293 for the same period a year ago. Loss from operations for the second quarter was $479,186 compared to operating income of $885,734 for the second quarter ended September 30, 2005. Net loss for the second quarter was $75,793 or $0.00 per share, compared to a net income of $808,934 or $0.03 per share, for the corresponding period in the prior year.
Revenues for the six months ended September 30, 2006 were $3,036,762 compared with the revenues of $3,812,632 for the same period a year ago. Loss from operations for the six months ended was $1,582,405 compared to an operating loss of $54,228 for the six months ended September 30, 2005. Net loss for the six months ended was $1,676,163 or $(0.06) per share, compared to a net income of $30,435 or $0.00 per share, for the corresponding period in the prior year.
Charles E. Ramey, Chairman and CEO of US Dataworks said, "Despite the difference in total revenues from last year, software transactional revenues grew 26% in the second quarter as a result of both new and past customers increasing their utilization of our software solutions. In addition, professional service revenues climbed 41% to $1.3 million as a direct result of two agreements signed with major financial services companies, one in June 2006 and the other in September 2006. Given the signing of the latter agreement, additional revenues should continue into the third quarter."
"Although we reported a loss for the quarter, we continue to believe that our leveraged business model will return the Company to profitability in the near term. Firstly, the Company recently entered into a month-to-month professional services contract with a major financial services company which is anticipated to significantly reduce negative cash flow for the remainder of fiscal 2007. Secondly, the Company's strategic alliance with one of the largest merchant service providers (MSPs) to sell Clearingworks(TM) as part of its Account Receivable Check (ARC), back office conversion, and Check 21 services, which should also contribute towards the Company's profitability. Additionally, the landscape for our services continues to look robust as more and more financial institutions adopt new payment processing solutions. Combined, we believe these relationships will continue the Company's growth into the balance of fiscal 2007."
A conference call is scheduled for today, at 9:30 AM EST. Interested parties may participate in the call by dialing (877) 407-8293; international callers dial (201) 689-8349 about 5-10 minutes prior to 9:30 AM EST. The conference call will also be available on replay starting at 12:00 noon EST on November 14, 2006, and ending on December 14, 2006. For the replay, please dial (877) 660-6853 (replay account # 269, replay conference # 220251). The access number for the replay for international callers is (201) 612-7415 (replay account # 269, replay conference # 220251). |
