HOUSTON, Feb. 16 /PRNewswire-FirstCall/ -- US Dataworks, Inc. , a
leading developer of payment processing solutions, announced today
financial results for its fiscal 2010 third quarter and nine months
results ended December 31, 2009. Revenues for the third quarter
ended December 31, 2009 were $2,266,858, representing a 13.3%
increase over revenues of $2,000,011 for the same period a year
ago. Income from operations for the third quarter was $309,076,
compared to $360,026 for the same period a year ago. Net income for
the third quarter was $74,060, or $0.00 per share, compared to
$133,850, or $0.00 per share, for the same period a year ago.
Revenues for the nine months ended December 31, 2009 were
$6,362,508, representing a 4.3% increase over revenues of
$6,099,797 for the same period a year ago. Income from operations
for the nine months ended December 31, 2009 was $680,454, compared
to $629,877 for the same period a year ago. Net loss for the nine
months ended December 31, 2009 was $104,600, or $(0.00) per share,
compared to a net loss of $1,817,326, or $(0.06) per share, for the
same period a year ago. Charles E. Ramey, Chairman and CEO of US
Dataworks, said, "The third quarter posted solid results, whereby
total revenues rose in excess of 13%, stemming from a strong 26%
increase in professional service revenues due to our contract with
a branch of the federal government. While our second largest
revenue generator, software transactional revenues, saw a slight
decline in the quarter, we believe those revenues will slowly
increase in the coming quarters as our clients' customers begin to
increase spending as well as the integration of new customers into
our system. I am also pleased with the profits recorded during the
quarter despite higher expenses in infrastructure and sales and
marketing. These expenditures are important steps for US Dataworks
to grow the business." Mr. Ramey added, "I'm also pleased to report
that we recently took positive steps in restructuring the Company's
capital situation. Specifically, we've secured a revolving line of
credit and a term loan both originating from Silicon Valley Bank,
with the proceeds from the term loan being used to pay down a
portion of our pre-existing debt, which is now subordinated to the
bank debt. In addition, the remaining portion of this subordinated
debt has also been restructured and these loans, which were coming
due on July 1, 2010, have been extended to January 1, 2014. I am
thankful to be working with Silicon Valley Bank and believe their
interest in providing us with this financing is a good indicator of
the fiscal strength of US Dataworks, especially during the current
economic conditions." "I am pleased with the progress we have made
fiscal year to date. While we still have a lot to accomplish, I
think the capital restructuring will yield financial flexibility to
the Company. In addition, the Company has initiated new
relationships that bode well for the future, including the most
recently signed contract with The Bankers Bank in Oklahoma City,
OK, which now uses US Dataworks' Clearingworks ® software
platform to drive the image check clearing network it conducts on
behalf of the 275 community banks. We value this new relationship
and anticipate it to be a reference contract for other similar
banks that we have begun to target," concluded Mr. Ramey. A
conference call is scheduled for today, at 2:00 PM 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 2:00 PM EST. The conference call will also be available on
replay starting at 4:00 pm EST on February 16, 2010, and ending on
March 16, 2010. For the replay, please dial (877) 660-6853 (replay
account # 269, replay conference # 344883). The access number for
the replay for international callers is (201) 612-7415 (replay
account # 269, replay conference # 344883). 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 http://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 or refinance 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.
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 - Tables to Follow - US
DATAWORKS, INC. QUARTERLY INCOME STATEMENT DATA (UNAUDITED) Three
Months Ended Nine Months Ended December 31, December 31, 2009 2008
2009 2008 Revenues Software licensing revenues 30,977 36,508 30,977
66,508 Software transactional revenues, net 514,999 540,787
1,554,967 1,601,291 Software maintenance revenues 208,816 217,775
629,675 666,257 Software service revenues 1,512,066 1,204,941
4,146,889 3,765,741 --------- --------- --------- ---------
2,266,858 2,000,011 6,362,508 6,099,797 Cost of sales 748,964
740,982 2,095,653 2,138,562 --------- --------- --------- ---------
Gross profit 1,517,894 1,259,029 4,266,855 3,961,235 Gross profit
margin 67.0% 63.0% 67.1% 64.9% Operating Expenses Research and
development 213,994 216,991 644,186 628,594 Sales and marketing
220,562 145,545 720,152 457,100 General and administrative 739,451
489,722 2,104,588 2,102,686 Depreciation and amortization 34,811
46,745 117,473 142,978 --------- --------- --------- ---------
1,208,818 899,003 3,586,399 3,331,358 Income from operations
309,076 360,026 680,454 629,877 Net operating income margin 13.6%
18.0% 10.7% 10.3% Other income (expense) Financing costs (99,648) -
(217,895) (329,692) Interest expense (1,436) (109,601) (166,555)
(2,603,020) Interest expense - related parties (134,066) (128,197)
(400,740) (207,026) Gain/Loss on Derivatives - - - 621,281 Other
income (expense) 134 11,622 134 71,255 --------- ---------
--------- --------- (235,016) (226,176) (785,056) (2,447,202)
Income/(Loss) before provision for income taxes 74,060 133,850
(104,600) (1,817,325) Net income margin 3.3% 6.7% -1.6% -29.8%
Provision for income taxes Net Income/(Loss) 74,060 133,850
(104,600) (1,817,325) Basic and diluted gain/(loss) per share $0.00
$0.00 $(0.00) $(0.06) Basic weighted-average shares outstanding
32,960,100 32,569,017 32,861,416 32,361,717 Effect of diluted
securities: Stock options 55,400 21,053 - - Diluted
weighted-average shares outstanding 33,015,500 32,590,070
32,861,416 32,361,717 US DATAWORKS, INC. QUARTERLY BALANCE SHEET
ANALYSIS For the quarter ended December 31, 2009 (UNAUDITED) ASSETS
December 31, 2009 ---------- Current assets Cash and cash
equivalents 1,089,642 Accounts receivable, trade 617,286 Prepaid
expenses and other current assets 260,281 --------- Total current
assets $1,967,209 Property and equipment, net 201,395 Goodwill, net
4,020,698 Other assets 32,111 --------- Total assets $6,221,413
========== LIABILITIES AND SHAREHOLDERS EQUITY Current liabilities
Accounts payable 268,482 Accrued expenses 188,964 Accrued Interest
- Related Party 21,398 Deferred Revenue 423,634 Note payable,
current 26,459 Notes payable-related party, net unamortized
discount of $186,446 3,905,949 --------- Total current liabilities
$4,834,886 ---------- Total liabilities $4,834,886 ==========
Shareholders' equity Convertible series B preferred stock, 0001 par
11 Common Stock. 0001 par 3,297 Additional paid in capital
65,563,370 Accumulated deficit (64,180,151) Total shareholders'
equity $1,386,527 ---------- Total liabilities and shareholders'
equity $6,221,413 ========== US DATAWORKS, INC. INCOME STATEMENT
DATA Non GAAP Reconciliations For the quarters ended Dec 31, 2009
and 2008 2009 2008 ---- ---- Reconciliation of Adjusted EBITDA (See
Note 1) Net Income $74,060 $133,850 Depreciation and Amortization
(incl. loss on disposal of assets) 34,811 46,745 Stock Based
compensation expense 60,952 32,033 Other (income) expense 235,015
226,176 ------- ------- Adjusted EBITDA (See Note 1) 404,838
438,804 ======= ======= Reconciliation of EBITDA margin Revenue
$2,266,859 $2,000,011 Adjusted EBITDA 404,838 438,804 Margin % 18%
22% Notes: 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. DATASOURCE: US Dataworks, Inc.
CONTACT: Charles Ramey, CEO of US Dataworks, Inc., +1-281-504-8100;
orDonald C. Weinberger of Wolfe Axelrod Weinberger Assoc. LLC,
+1-212-370-4500,or Fax, +1-212-370-4505 Web Site:
http://www.usdataworks.com/
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