HOUSTON, Feb. 14 /PRNewswire-FirstCall/ -- 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 DATASOURCE: US Dataworks, Inc. CONTACT: John
Figone, SVP, Business Development of US Dataworks, Inc.,
+1-281-635-7932; or media, Donald C. Weinberger, or Alisa Steinberg
of Wolfe Axelrod Weinberger Assoc. LLC, +1-212-370-4500, fax,
+1-212-370-4505 Web site: http://www.usdataworks.com/
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