US Dataworks, Inc. Announces Fiscal Second Quarter Financial Results
- Company Reports a 48.7% Increase in Revenues and Operating Profit -
HOUSTON, Nov 14, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- US Dataworks, Inc. (Amex: UDW), a leading developer of payment processing solutions, announced today financial results for its fiscal 2009 second quarter and six months results ended September 30, 2008.
Revenues for the second quarter ended September 30, 2008 were $2,030,737 compared with revenues of $1,366,084 for the same period a year ago. The company reported a gain from operations for the second quarter of $162,702 compared to a loss from operations of $831,446 for the second quarter ended September 30, 2007. Net loss for the second quarter was $1,841,695 or $0.06 per share, compared to a net loss of $845,758 or $0.03 per share, for the corresponding period in the prior year.
Revenues for the six months ended September 30, 2008 were $4,099,786 compared with the revenues of $2,595,156 for the same period a year ago. Gain from operations for the six months ended was $269,850 compared to an operating loss of $1,668,516 for the six months ended September 30, 2007. Net loss for the six months ended was $1,951,176 or $0.06 per share, compared to a net loss of $1,715,019 or $0.05 per share, for the corresponding period in the prior year.
Contributing to the net loss in the three and six months periods were the promissory notes that were paid in full during the quarter on August 13, 2008, resulting in an accounting treatment consistent with FASB No. 133 guidelines. At the time the notes were paid off the derivatives no longer have value associated with the notes, and the discount on note payable must be immediately expensed. At the time the notes were paid in August 2008, $1,747,791 remained on the discount on note payable. This amount was charged to interest expense in the quarter ended September 30, 2008 and accounts for the bulk of the decrease in other income for the three and six months ended September 30, 2008 as compared to the same time period last year.
Charles E. Ramey, Chairman and CEO of US Dataworks said, "We are very encouraged about our continued growth, especially in transactional revenues of 34% in the quarter. This increase was principally due to an increase in the number of customers subject to transactional pricing combined with an increase in transactions processed by our current customers."
Mr. Ramey added, "We were pleased to report our second consecutive quarter of operating profits, which we believe indicates success in our recent restructuring. We believe that we have properly right sized the Company to incur additional growth. Overall, while we have a lot to do, we have accomplished a lot over the last quarter, including the early repayment of the convertible promissory notes, acceptance of our compliance plan by NYSE Alternext US (formerly the American Stock Exchange), adding a major U.S. Federal Government Entity to use our ClearingWorks 3.0, and the launch of a new, patent-pending solution to capture payments remotely and send the images and data directly to a centralized processing system. This last accomplishment will eliminate the need for our clients to rely on a PC to drive the remote capture device. This will minimize our clients' costs as well as help improve their employee productivity. We are excited about this new solution and believe it will assist the company in continuing our growth." |
