Here are a few questions and answers from Management that I forwarded just ahead of the latest conference call to UDW Management:
1) What is being done to increase institutional investor awareness and interest in US Dataworks? Are you considering hiring a boutique stock research firm to issue a stock report and possibly a buy recommendation on UDW?
Royal Bank of Canada 3/31/2007 462,700 462,700 new $250,000
Barclays Global Investors 3/31/2007 198,568 $119,000
Barclays plc 3/31/2007 4,800 4,800 new $3,000
Bancorpsouth inc 3/31/2007 1,350 1,350 new $1,000
ANSWER - We have engaged the services of Wolfe, Axelrod & Weinberger as our IR consultants. we have made efforts to promote institutional investment but this is difficult for a $20 million market cap company to achieve. However we will continue to strive in the area.
2) Please explain why UDW has agreed to non-disclosure of certain business transactions? What business has been derived by the agreements with online resources, Paymentech and Midwest Independent Bank?
ANSWER - Certain corporations require non-disclosure as a requirement to get the business and/or as a matter of policy.
3) What percentage of the recent 200 ATM order was enhanced with Clearingworks?
ANSWER - None, the first 700 unit sale is a sale of conventional ATMs. Units with Clearingworks are still under development but expected to be released this year.
4) Why are there no specifics regarding the mComm ATM available on your website?
ANSWER - Hyundai Syscomm has asked that they develop the mComm site. I believe that they may place some content on their Hyundai Syscomm site at any time. There will be a hyperlink from their site to UDW's.
5) When is the website going to be updated with the following:
ANSWER - Thank you for your diligent review of our website. We apologize for some of the content not being up-to-date and will endeavor to redress these issues in the near future.
a) addition of parties’ mComm ATM dispenser under solutions heading with pictures, specifications, etc
b) addition of john t. McLaughlin, chief accounting officer with picture under management section
c) update partner links with a focus on integrated systems development (ISD) listed on your web site partner page at usdataworks.com appears to be incorrect. I believe that the current address of isdwhq.com should be isdcorporation.com don't forget to add Online Resources, Paymentech and Hyundai Rfmon corp.(“rfm”) as well as Hyundai Syscomm
d) update trade shows web page
e) update careers page as I believe the positions have been filled by now
6) What is the status of us Dataworks patent filing of Imagekey and could you provide the patent filing number?
ANSWER - It is our understanding that the application is still pending. I will check with our patent counsel for the application number. Imagekey is not considered to be one our of premiere solutions, but more of a supplemental product for customers desiring a special solution.
7) Please take some time to comment on your thoughts pertaining to the fact that the electronic payments processing market is consolidating and at the same time ease of entry is attracting new providers that may affect US Dataworks growth prospects.
ANSWER - I cannot agree that the opinion you have is the same as the company's outlook on the industry. We will, however, share any thoughts determined to be material and thus subject to disclosure.
8) BOC has been in effect for some time now and there have been no new contract announcements from UDW - why?
ANSWER - Changing paradigms in the payment space is a slow and arduous process (see check 21 --- passed into law in 2003; only starting to make headway now). BOC has become effective only in march of this year. UDW is working toward and will continue to work toward getting traction for its BOC solution. UDW will make announcements of material contract signings as they occur.
9) What value drivers, products or services will propel US Dataworks to the next level of $100M in sales.
ANSWER - The company is confident its Clearingworks solutions, both in the payment processing and ATM/Teller-less Kiosk space will be the primary means to the company's growth.
10) Is that transaction counter on the web site really accurate?
ANSWER - The rate of the counter is calibrated to reflect the monthly data reports we generate for our customers. Is it accurate to the transaction? No. Is it accurate in real-time? No. is it reasonably accurate? Yes.
11) What is happening in the credit-push area and why are other potential providers gaining recognition when US Dataworks introduced Hyperpay several years ago? Where is the self promotion?
ANSWER - Like other new payment types (see response #8), uptake of credit-push type solutions has been minimal. Other similar service providers may be issuing releases, but we believe that, to date, there has not been material usage of this payment type in our industry. UDW is part of the NACHA product development and remains a leading proponent of this payment type. Credit Push(tm) is the trademark of UDW.
12) Why did Hyundai Syscomm select us Dataworks to distribute their ATMs in the us and India? also, how does the distribution of ATMs fit in with the core business segment of us Dataworks?
ANSWER - As part of our agreement with Hyundai Syscomm Corp., any sales of Hyundai ATM/Kiosks that incorporate payment processing functionality must include UDW’s Clearingworks for the territory of India and North America. Whether running within an ATM/Kiosk or on a credit card processor's servers, the processing of transactions through Clearingworks will generate revenues for the company.
13) What products or services are under consideration or development with Hyundai Syscomm. i.e. cell phone enabled with Clearingworks, etc.
ANSWER - A press release will be issued when appropriate. At this moment we have no material announcements.
14) Was cash flow used to repurchase the convertible promissory note?
ANSWER - If you are asking whether the note was repaid with cash (as opposed to being refinanced by undertaking more debt), the answer would be yes.
15) Do you still anticipate that your personal loan note to the company will be paid in full sometime at maturity in September/October 2007?
ANSWER - Mr. Ramey and the company have not formally agreed to any other terms not presently set forth in the note. |
