HOUSTON, Aug. 14 /PRNewswire-FirstCall/ -- US Dataworks, Inc.
(AMEX:UDW), a leading developer of payment processing solutions,
today announced financial results for its fiscal first quarter
ended June 30, 2006. Revenues for the first quarter ended June 30,
2006 were $1,215,088 compared with revenues of $1,080,339 for the
same period a year ago. Operating loss for the first quarter was
$1,103,219 compared to an operating loss of $939,962 for the first
quarter ended June 30, 2005. Net loss for the first quarter was
$1,600,370 or $(0.05) per share, compared to a net loss of $778,499
or $(0.03) per share, for the corresponding period in the prior
year. Charles E. Ramey, Chairman and CEO of US Dataworks said, "Our
revenues increased by 13% during the first quarter of our fiscal
2007 as transactional revenues grew as a result of both new and
past customers increasing their utilization of our software
solutions." "Although we reported a loss for the quarter, we
continue to believe that our leveraged business model will produce
future profits on an on-going basis. Many of the agreements
announced in the quarter, like those with various financial
services companies including Online Resources Corp. (ORCC), Bank of
Oklahoma, and a significant financial transaction processor, are
beginning to take hold. Specifically, our strategic alliance with
one of the largest merchant service providers that has enabled them
to sell our Clearingworks product as part of their Account
Receivable Check (ARC) and back office conversion services, will be
a backbone to our future profitability. 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 10:00
AM EDT. Interested parties may participate in the call by dialing
(877) 407-8293; international callers dial (201) 689-8349 about
5-10 minutes prior to 10:00 AM EDT. The conference call will also
be available on replay starting at 12:00 noon EDT on August 14,
2006, and ending on September 14, 2006. For the replay, please dial
(877) 660-6853 (replay account # 269, replay conference # 211162).
The access number for the replay for international callers is (201)
612-7415 (replay account # 269, replay conference # 211162). 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. Except for
the historical information contained herein, the matters set forth
in this press release, including, but not limited to the Company's
belief that it will be "well positioned" for 2007 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 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 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 period
ended March 31, 2006 and its quarterly report on Form 10-Q for the
period ended December 31, 2005. These forward-looking statements
speak only as of the date hereof. US Dataworks disclaims any
obligation to update these forward-looking statements. US
DATAWORKS, INC. QUARTERLY INCOME STATEMENT DATA For the three
months ended June 30, 2006 and 2005 (UNAUDITED) as restated June
June Net % 2006 2005 Change Change Revenues Software licensing
revenues 379,255 299,120 80,135 26.8% Software transactional
revenues 313,996 181,243 132,753 73.2% Software maintenance
revenues 103,765 92,326 11,439 12.4% Software service revenues
418,072 507,650 (89,578) -17.6% 1,215,088 1,080,339 134,749 12.5%
Cost of sales 522,299 377,501 144,798 38.4% Gross profit 692,789
702,838 (10,049) -1.4% Operating Expenses General and
administrative 1,762,948 1,554,275 208,673 13.4% Depreciation and
amortization 33,060 88,525 (55,465) -62.7% 1,796,008 1,642,800
153,208 9.3% Loss from operations (1,103,219) (939,962) (163,257)
17.4% Other income (expense) Financing costs - - - - Interest
expense (92,172) (53,605) (38,567) 71.9% Interest expense - related
parties - - - - Loss on extinguishment of debt - - - - Loss on
extinguishment of debt-related party - - - - Investor litigation
settlement expense - - - - Gain/Loss on Derivatives (413,454)
208,269 (621,723) -298.5% Contingent liabilities loss - - Other
income (expense) 8,475 6,799 1,676 24.6% (497,151) 161,463
(658,614) -407.9% Loss before provision for income taxes
(1,600,370) (778,499) (821,871) 105.6% Provision for income taxes -
- - Net loss (1,600,370) (778,499) (821,871) 105.6% Basic and
diluted loss per share (0.05) $(0.03) $(0.02) 76.2% Basic and
diluted weighted -average (adjusted for reverse stock split
1:5)shares outstanding 30,269,429 28,972,005 1,297,424 4.5% US
DATAWORKS, INC. Quarterly Balance Sheet Analysis For the quarter
ended June 30, 2006 (UNAUDITED) ASSETS June March 2006 2006 Current
assets Cash and cash equivalents 657,184 1,290,438 Accounts
receivable, net allowance for doubtful accounts 2,264,469 1,491,688
Costs and estimated earnings in excess of billings on uncompleted
contracts - 238,000 Prepaid expenses and other current assets
230,388 166,514 Total current assets 3,152,041 3,186,640 Property
and equipment 2,068,785 2,055,975 Accumulated Amortization and
depreciation (1,616,928) (1,583,868) Goodwill, net 14,133,629
14,133,629 Other assets 43,224 43,224 Total assets 17,780,750
17,835,600 LIABILITIES AND SHAREHOLDERS EQUITY Current liabilities
Notes payable Notes payable - related parties 39,000 39,000 Current
portion of convertible promissory notes 1,076,799 1,128,133 Current
portion of convertible promissory notes unamortized discount
(350,509) (529,345) Derivative Liability - Compound embed 326,274
118,416 Derivative Liability - Warrants 188,521 112,830 Contingent
liabilities 222,600 222,600 Deferred revenue 739,739 216,754
Accounts payable 496,680 231,412 Accrued expenses 229,524 239,938
Interest payable 60,877 41,672 Total current liabilities 3,029,505
1,821,410 Long term convertible promissory note 256,066 358,733
Long term convertible promissory notes unamortized discount - Total
liabilities 3,285,571 2,180,143 Shareholders' equity Convertible
series A preferred stock, .0001 par Convertible series B preferred
stock, .0001 par 55 55 Common Stock .0001 par 3,044 3,013
Additional paid in capital 63,202,788 62,762,727 Accumulated
deficit (48,710,708) (47,110,338) Total shareholders' equity
14,495,179 15,655,457 Total liabilities and shareholders' equity
17,780,750 17,835,600 Shareholders' equity Convertible series A
preferred stock, .0001 par, $2.50 liquidation preference Authorized
800,000 800,000 Issued and outstanding Dividends in arrears
Convertible series B preferred stock, .0001 par, $0.75 liquidation
preference Authorized 700,000 700,000 Issued and outstanding
549,667 549,667 Dividends in arrears Common Stock .0001 par
Authorized 90,000,000 90,000,000 Issued and outstanding (adjusted
for the 1:5 reverse stock split) 30,437,877 30,126,764 CONTACTS:
John Figone, SVP, Business Development US Dataworks, Inc. (713)
934-3855 Donald C. Weinberger/Alisa Steinberg (media) Wolfe Axelrod
Weinberger Assoc. LLC Tel. (212) 370-4500 Fax (212) 370-4505
DATASOURCE: US Dataworks, Inc. CONTACT: John Figone, SVP, Business
Development, of US Dataworks, Inc., +1-713-934-3855 ; or Donald C.
Weinberger, or Alisa Steinberg, media, both of Wolfe Axelrod
Weinberger Assoc. LLC, for US Dataworks, Inc. Tel. +1-212-370-4500,
or Fax +1-212-370-4505 Web site: http://www.usdataworks.com/
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