US Dataworks, Inc. Announces Fiscal Third Quarter Financial Results
- Quarterly Revenues Increase by 13.3% Over Prior Year Period -
- Management to Host Conference Call Today at 2pm EST -
HOUSTON, Feb. 16 /PRNewswire-FirstCall/ -- US Dataworks, Inc. (AMEX: UDW), 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 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: |
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Charles Ramey, CEO |
Donald C. Weinberger |
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US Dataworks, Inc. |
Wolfe Axelrod Weinberger Assoc. LLC |
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Tel. (281) 504-8100 |
Tel. (212) 370-4500 |
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Fax (212) 370-4505 |
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- 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.
SOURCE US Dataworks, Inc.
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