HOUSTON, Feb 14, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- US Dataworks, Inc. (Amex: UDW), a leading developer of payment processing solutions, announced today its fiscal third quarter and nine months financial results ended December 31, 2007.
Revenues for the third quarter ended December 31, 2007 were $1,531,229 compared with revenues of $1,719,887 for the same period a year ago. Loss from operations for the third quarter was $6,399,131 compared to a loss from operations of $222,724 for the third quarter ended December 31, 2006. Excluding a one-time charge related to a goodwill impairment booked in December 2007, loss from operations would have been $466,947. Net loss for the third quarter was $5,551,203 or $(0.17) per share, compared to a net loss of $321,192 or $(0.01) per share, for the corresponding period in the prior year.
Revenues for the nine months ended December 31, 2007 were $4,126,385 compared with the revenues of $4,756,649 for the same period a year ago. Loss from operations for the nine months ended was $8,067,648 compared to an operating loss of $1,805,128 for the nine months ended December 31, 2006. Excluding a one-time charge related to a goodwill impairment booked in December 2007, loss from operations would have been $2,135,464. Net loss for the nine months ended was $7,226,223 or $(0.23) per share, compared to a net less of $1,997,353 or $(0.07) per share, for the corresponding period in the prior year.
Software licensing revenues nearly doubled for the three months ended December 31, 2007, as compared to the same period in the prior year and were primarily related to the renewal of license sales of third-party software add-ons by the Company's customers. Transactional revenues for the three months ended December 31, 2007 decreased as compared to the same period in the prior year, largely on account of a one-time transactional fee the Company collected in 2006 under its agreement with a major merchant services provider. The increase in maintenance revenues for both the three and nine months ended December 31, 2007, as compared to the same periods in the prior year, was primarily related to the annual maintenance fees generated under the license agreement with one of the Company's major credit card customers. US Dataworks began to collect revenue related to this maintenance fee in May 2007 and expects to receive approximately $400,000 in fiscal 2008 under this agreement. The decrease in professional service revenues for the three months ended December 31, 2007, as compared to the same period in the prior year, was the result of the Company having completed two significant projects for certain customers in that prior year.
A conference call to discuss these results with the financial community is scheduled for today, at 10:30 AM EST. Interested parties may participate in the call by dialing (877) 869-3847; international callers dial (201) 689-8261 about 5-10 minutes prior to 10:30 AM EST. The conference call will also be available on replay starting at 12:30 pm EST on February 14, 2008, and ending on March 14, 2008. For the replay, please dial (877) 660-6853 (replay account # 269, replay conference # 274621). The access number for the replay for
international callers is (201) 612-7415 (replay account # 269, replay conference # 274621).
About US Dataworks, Inc.
US Dataworks is a developer of payment processing solutions, focused on the Financial Services market, Federal, State and local governments, billers and retailers. Software developed by US Dataworks is designed to enable organizations to transition from traditional paper-based payment and billing processes to electronic solutions that automate end-to-end processes for accepting and clearing checks. Additional information about US Dataworks is available at http://www.usdataworks.com.
Except for the historical information contained herein, the matters set forth in this press release are forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including, but not limited to, the Company's review and audit of its financial statements and other risks detailed from time to time in the SEC reports of US Dataworks, including its annual report on Form 10-KSB for the period ended March 31, 2007 and its quarterly report on Form 10-QSB for the period ended September 30, 2007. These forward-looking statements speak only as of the date hereof. US Dataworks disclaims any obligation to update these forward-looking.
US DATAWORKS, INC. QUARTERLY INCOME STATEMENT DATA For the periods ended Dec. 31, 2007 and 2006 (UNAUDITED) Three Months Ended Nine Months Ended 12/31/07 12/31/06 12/31/07 12/31/06 Revenues Software licensing revenues 182,911 94,175 289,833 609,158 Software transactional revenues 445,654 532,868 1,225,043 1,138,588 Software maintenance revenues 233,010 109,128 658,019 315,677 Software service revenues 669,654 983,716 1,953,490 2,693,226 ATM Equipment revenues - - - - 1,531,229 1,719,887 4,126,385 4,756,649 Cost of sales 574,230 540,127 1,469,312 1,559,854 Gross profit 956,999 1,179,760 2,657,073 3,196,795 Operating Expenses General and administrative 1,375,756 1,364,879 4,659,534 4,896,677 Depreciation and amortization 48,190 37,605 133,003 105,246 Goodwill Impairment 5,932,184 - 5,932,184 - 7,356,130 1,402,484 10,724,721 5,001,923 Loss from operations (6,399,131) (222,724) (8,067,648) (1,805,128) Other income (expense) Financing costs (86,704) - (112,680) - Interest expense (157,721) (49,641) (170,524) (220,418) Interest expense - related parties (14,714) (10,938) (36,589) (10,938) Loss on disposition of assets - - (44,231) - Gain/Loss on Derivatives 1,099,284 (37,889) 1,157,666 (193,960) Contingent liabilities loss - - - 222,600 Other income (expense) 7,783 - 7,783 10,491 847,928 (98,468) 801,425 (192,225) Loss before provision for income taxes (5,551,203) (321,192) (7,266,223) (1,997,353) Provision for income taxes Net loss (5,551,203) (321,192) (7,266,223) (1,997,353) Basic and diluted loss per share (0.17) (0.01) $(0.23) (0.07) Basic and diluted weighted -average (adjusted for reverse stock split 1:5)shares outstanding 32,062,962 31,003,828 31,638,735 30,612,526 US DATAWORKS, INC. Quarterly Balance Sheet Analysis For the quarter ended December 31, 2007 (UNAUDITED) ASSETS December 31, 2007 Current assets Cash and cash equivalents 1,333,039 Accounts receivable, trade 972,355 Prepaid expenses and other current assets 176,100 Total current assets 2,481,494 Property and equipment, net 518,659 Goodwill, net 8,201,445 Other assets 386,622 Total assets 11,588,220 LIABILITIES AND SHAREHOLDERS EQUITY Current liabilities Notes payable - Equipment 35,279 Derivative Liability - Compound embedded 647,399 Derivative Liability - Warrants 510,453 Deferred revenue 376,561 Accounts payable 166,361 Accrued expenses 396,124 Total current liabilities 2,132,177 Long term Note Payable - Equipment 58,798 Long term Note Payable - Related Party 500,000 Long term convertible promissory note, net unamortized discount of $2,156,606 1,843,394 Total liabilities 4,534,369 Shareholders' equity Convertible series B preferred stock, 0001 par 55 Common Stock. 0001 par 3,206 Additional paid in capital 64,733,161 Accumulated deficit (57,682,571) Total shareholders' equity 7,053,851 Total liabilities and shareholders' equity 11,588,220 CONTACTS: John Figone, SVP, Business Development Donald C. Weinberger/ US Dataworks, Inc. Alisa Steinberg (media) Tel. (281) 635-7932 Wolfe Axelrod Weinberger Assoc. LLC Tel. (212) 370-4500 Fax (212) 370-4505
SOURCE US Dataworks, Inc.
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