HOUSTON, Nov. 14 /PRNewswire-FirstCall/ -- US Dataworks, Inc.
(AMEX:UDW), a leading developer of payment processing solutions,
announced today financial results for its fiscal 2006 second
quarter and six months results ended September 30, 2006. Revenues
for the second quarter ended September 30, 2006 were $1,821,673
compared with revenues of $2,732,293 for the same period a year
ago. Loss from operations for the second quarter was $479,186
compared to operating income of $885,734 for the second quarter
ended September 30, 2005. Net loss for the second quarter was
$75,793 or $0.00 per share, compared to a net income of $808,934 or
$0.03 per share, for the corresponding period in the prior year.
Revenues for the six months ended September 30, 2006 were
$3,036,762 compared with the revenues of $3,812,632 for the same
period a year ago. Loss from operations for the six months ended
was $1,582,405 compared to an operating loss of $54,228 for the six
months ended September 30, 2005. Net loss for the six months ended
was $1,676,163 or $(0.06) per share, compared to a net income of
$30,435 or $0.00 per share, for the corresponding period in the
prior year. Charles E. Ramey, Chairman and CEO of US Dataworks
said, "Despite the difference in total revenues from last year,
software transactional revenues grew 26% in the second quarter as a
result of both new and past customers increasing their utilization
of our software solutions. In addition, professional service
revenues climbed 41% to $1.3 million as a direct result of two
agreements signed with major financial services companies, one in
June 2006 and the other in September 2006. Given the signing of the
latter agreement, additional revenues should continue into the
third quarter." "Although we reported a loss for the quarter, we
continue to believe that our leveraged business model will return
the Company to profitability in the near term. Firstly, the Company
recently entered into a month-to-month professional services
contract with a major financial services company which is
anticipated to significantly reduce negative cash flow for the
remainder of fiscal 2007. Secondly, the Company's strategic
alliance with one of the largest merchant service providers (MSPs)
to sell Clearingworks(TM) as part of its Account Receivable Check
(ARC), back office conversion, and Check 21 services, which should
also contribute towards the Company's profitability. Additionally,
the landscape for our services continues to look robust as more and
more financial institutions adopt new payment processing solutions.
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 9:30 AM EST. Interested parties may
participate in the call by dialing (877) 407-8293; international
callers dial (201) 689-8349 about 5-10 minutes prior to 9:30 AM
EST. The conference call will also be available on replay starting
at 12:00 noon EST on November 14, 2006, and ending on December 14,
2006. For the replay, please dial (877) 660-6853 (replay account #
269, replay conference # 220251). The access number for the replay
for international callers is (201) 612-7415 (replay account # 269,
replay conference # 220251). 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 June 30, 2006. These forward-looking statements speak
only as of the date hereof. US Dataworks disclaims any obligation
to update these forward-looking statements. CONTACTS: John Figone,
SVP of 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 US
DATAWORKS, INC. QUARTERLY INCOME STATEMENT DATA Three Months Ended
Six months ending 9/30/06 9/30/05 9/30/06 9/30/05 Revenues as
restated as restated Software licensing revenues 135,728 1,451,800
514,983 1,750,920 Software transactional revenues 291,724 231,361
605,720 412,604 Software maintenance revenues 102,783 134,566
206,549 226,892 Software service revenues 1,291,439 914,566
1,709,510 1,422,216 $1,821,673 $2,732,293 $3,036,762 $3,812,632
Cost of sales 497,428 405,355 1,019,728 782,856 Gross profit
1,324,245 2,326,938 2,017,034 3,029,776 Operating Expenses General
and administrative 1,768,850 1,351,247 3,531,798 2,905,522
Depreciation and amortization 34,581 89,957 67,641 178,482
1,803,431 1,441,204 3,599,439 3,084,004 Income (loss) from
operations (479,186) 885,734 (1,582,405) (54,228) Other income
(expense) Interest expense (78,606) (91,046) (170,778) (144,651)
Loss on extinguishment of debt - (206,000) - (206,000) Gain/Loss on
Derivatives 257,383 210,827 (156,071) 419,096 Contingent
liabilities loss 222,600 - 222,600 - Other income (expense) 2,016
9,419 10,491 16,218 403,393 (76,800) (93,758) 84,663 Income (loss)
before provision for income taxes (75,793) 808,934 (1,676,163)
30,435 Provision for income taxes - - - - Net income (loss)
(75,793) 808,934 (1,676,163) 30,435 Basic and diluted income (loss)
per share $0.00 $0.03 $(0.06) $0.00 Basic weighted average shares
outstanding 30,560,591 30,037,020 30,415,806 29,369,865 Diluted
weighted average shares outstanding 30,560,591 30,076,243
30,415,806 29,409,088 US DATAWORKS, INC. Quarterly Balance Sheet
Analysis For the quarter ended September 30, 2006 (UNAUDITED)
ASSETS 9/30/06 Current assets Cash and cash equivalents 134,646
Accounts receivable, trade 2,100,519 Accounts receivable, factored
244,280 Costs and estimated earnings in excess of billings on
uncompleted contracts Prepaid expenses and other current assets
197,558 Total current assets 2,677,003 Property and equipment
2,098,149 Accumulated Amortization and depreciation (1,641,043)
Goodwill, net 14,133,629 Other assets 30,334 Total assets
$17,298,072 LIABILITIES AND SHAREHOLDERS EQUITY Current liabilities
Notes payable Notes payable - related parties 539,000 Current
portion of capital lease obligations Current portion of convertible
promissory notes 666,733 Current portion of convertible promissory
notes unamortized discount (203,031) Derivative Liability -
Compound embed 68,453 Derivative Liability - Warrants 77,464
Deferred revenue 744,383 Accounts payable 461,637 Accrued expenses
216,534 Interest payable 1,128 Total current liabilities 2,572,302
Total liabilities $2,572,302 Shareholders' equity Convertible
series A preferred stock, 0001 par Convertible series B preferred
stock, 0001 par 55 Common Stock. 0001 par 3,073 Common Stock
subscription Additional paid in capital 63,509,143 Deferred
Compensation Accumulated deficit (48,786,501) Total shareholders'
equity $14,725,770 Total liabilities and shareholders' equity
$17,298,072 DATASOURCE: US Dataworks, Inc. CONTACT: John Figone,
SVP of 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, Tel. +1-212-370-4500, Fax
+1-212-370- 4505 Web site: http://www.usdataworks.com/
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