HOUSTON, Nov 16, 2009 /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 2010 second quarter and six months results ended September 30, 2009.
Revenues for the second quarter ended September 30, 2009 were $2,087,189 compared with revenues of $2,030,737 for the same period a year ago. The company reported a gain from operations for the second quarter of $129,813 compared to $162,703 for the second quarter ended September 30, 2008. Net loss for the second quarter was $154,750 or $0.00 per share, compared to a net loss of $1,841,695 or $0.06 per share, for the corresponding period in the prior year.
Revenues for the six months ended September 30, 2009 were $4,095,650 compared with revenues of $4,099,786 for the same period a year ago. Gain from operations for the six months ended September 30, 2009 was $371,379 compared to $269,850 for the six months ended September 30, 2008. Net loss for the six months ended September 30, 2009 was $178,663 or $0.01 per share, compared to a net loss of $1,951,176 or $0.06 per share, for the corresponding period in the prior year.
Charles E. Ramey, Chairman and CEO of US Dataworks said, "The second quarter financial results signals how our Company is performing during these difficult economic times. Revenues increased slightly, by 3%, due to our professional services contract with a United States government entity, which enabled us to report positive cash flow on a non-GAAP basis (adjusted EBITDA). It is relationships like this one that has enabled us to build a solid foundation and remain fiscally sound. The challenges that we see in the near term are coming directly from the slowdown in the economy, which has taken a slight toll on our transactional revenues. While we await the expected economic recovery, our Company is currently well-positioned to convert our sales pipeline into revenue when these potential customers are ready to transition to electronic solutions from traditional means."
A conference call is scheduled for today, at 11:00 AM ET. Interested parties may participate in the call by dialing (877) 869-3847; international callers dial (201) 689-8261, 5-10 minutes prior to 11:00 AM ET. The conference call will also be available on replay starting at 2:00 p.m. ET on November 16, 2009, and ending on November 23, 2009. For the replay, please dial (877) 660-6853 (replay account # 269, replay conference #337135). The access number for the replay for international callers is (201) 612-7415 (replay account # 269, replay conference #337135).
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 payments. Additional information about US Dataworks is available at www.usdataworks.com.
Certain statements made in this press release (other than the historical information contained herein) constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including, but not limited to, statements regarding our expectation of continued growth, the benefits of our recent restructuring, the anticipated features and benefits of our new distribution payment capture solution, our vision for payment processing and our new solutions' ability to provide a higher return on investment for our clients. Any forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including, but not limited to, the failure of our new solution to perform as anticipated, our ability to provide long-term customer value and agility, our ability to protect our intellectual property, our position in the marketplace, our ability to develop and timely introduce products that address market demand, the impact of alternative technological advances and competitive products, market fluctuations, our ability to avoid being delisted from the NYSE Alternext US (formerly the American Stock Exchange), our ability to repay, refinance or extend the maturity date of our debt, and other risks detailed from time to time in the SEC reports of US Dataworks, including its annual report on Form 10-K for the year ended March 31, 2009 and its quarterly report on Form 10-Q for the quarter ended September 30, 2009. These forward-looking statements speak only as of the date hereof. US Dataworks disclaims any obligation to update these forward-looking statements.
- Tables to Follow -
US DATAWORKS, INC. QUARTERLY INCOME STATEMENT DATA (UNAUDITED) Three Months Ended Six Months Ended September 30, September 30, 2009 2008 2009 2008 Revenues Software licensing revenues - - - 30,000 Software transactional revenues, net 518,725 522,755 1,039,968 1,060,504 Software maintenance revenues 208,488 219,608 420,859 448,482 Software service revenues 1,359,976 1,288,374 2,634,823 2,560,800 ATM Equipment revenues - - - - 2,087,189 2,030,737 4,095,650 4,099,786 Discounts on Sales - - Net Revenue 2,087,189 2,030,737 4,095,650 4,099,786 Cost of sales 670,318 651,401 1,346,689 1,397,580 Gross profit 1,416,871 1,379,336 2,748,961 2,702,206 Operating Expenses Research and development 217,254 256,152 430,191 517,643 Sales and marketing 237,290 116,859 499,590 311,556 General and administrative 793,496 795,441 1,365,137 1,506,924 Depreciation and amortization 39,018 48,182 82,664 96,233 Goodwill Impairment - - - - 1,287,058 1,216,634 2,377,582 2,432,356 Gain from operations 129,813 162,703 371,379 269,850 Other income (expense) Financing costs (94,979) (299,692) (118,248) (329,692) Interest expense (55,518)(2,219,703) (165,119) (2,493,419) Interest expense - related parties (134,066) (67,922) (266,675) (78,829) Gain/Loss on Derivatives - 580,201 - 621,281 Other income (expense) - 2,719 - 59,633 (284,563)(2,004,397) (550,042) (2,221,026) (Loss) before provision for income taxes (154,750)(1,841,695) (178,663) (1,951,176) Provision for income taxes Net (Loss) (154,750)(1,841,695) (178,663) (1,951,176) Basic and diluted gain/ (loss) per share (0.00) (0.06) $(0.01) (0.06) Basic and diluted weighted average (adjusted for reverse stock split 1:5) shares outstanding 32,849,330 32,349,012 32,815,014 32,243,927
US DATAWORKS, INC. Quarterly Balance Sheet Data For the quarter ended September 30, 2009 (UNAUDITED) ASSETS September 2009 Current assets Cash and cash equivalents 151,827 Accounts receivable, trade 971,391 Prepaid expenses and other current assets 377,494 Total current assets 1,500,712 Property and equipment, net 223,119 Goodwill, net 4,020,698 Other assets 32,111 Total assets 5,776,640 LIABILITIES AND SHAREHOLDERS EQUITY Current liabilities Accounts payable 183,376 Accrued expenses 181,794 Accrued Interest - related Parties 23,656 Deferred revenue, current 285,721 Note payable, current 35,279 Note Payable - Related Party- CRJN, net unamortized discount of $277,094 3,815,301 Total current liabilities 4,525,127 Total liabilities 4,525,127 Shareholders' equity Convertible series B preferred stock, 0001 par 11 Common Stock. 0001 par 3,285 Additional paid in capital 65,502,419 Unissued Common Stock 9 Accumulated deficit (64,254,211) Total shareholders' equity 1,251,513 Total liabilities and shareholders' equity 5,776,640
US DATAWORKS, INC. INCOME STATEMENT DATA Non GAAP Reconciliations For the quarters ended September 30, 2009 and 2008 2009 2008 Reconciliation of Adjusted EBITDA (See Note 1) Net Income $(154,750) $(1,841,694) Depreciation and Amortization (incl. loss on disposal of assets) 39,018 48,182 Stock Based compensation expense 77,176 68,966 Other (income) expense 284,563 2,004,397 Adjusted EBITDA (See Note 1) 246,007 279,851 Reconciliation of EBITDA margin Revenue $2,087,189 $2,030,737 Adjusted EBITDA 246,007 279,851 Margin % 12% 14%
(1) Adjusted EBITDA is a non-GAAP measure we define as earnings before interest, taxes, depreciation and amortization, and equity compensation expense. We use Adjusted EBITDA as a supplemental financial measure to assess (i) our operating and financial performance without regard to the structure of our financing or the historical cost basis in our assets and (ii) our ability to generate cash flow to cover our interest payments. Adjusted EBITDA has limitations as an analytical tool and should not be used as a substitute for financial measures presented in accordance with GAAP, including net income, operating income and cash flow from operating activities. Such limitations include the fact that Adjusted EBITDA does not reflect (i) cash requirements to service interest and principal payments on our debt, (ii) capital expenditure requirements or (iii) income tax payment requirements and income tax accruals. In addition, companies in our industry may define Adjusted EBITDA differently than we do, thereby limiting its usefulness as a comparative measure.
CONTACTS: Charles Ramey, CEO Donald C. Weinberger US Dataworks, Inc. Wolfe Axelrod Weinberger Assoc. LLC Tel. (281) 504-8100 Tel. (212) 370-4500 Fax (212) 370-4505
SOURCE US Dataworks, Inc.
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