US Dataworks, Inc. Announces Fourth Quarter and Fiscal 2010 Financial Results

HOUSTON, June 29 /PRNewswire-FirstCall/ -- US Dataworks, Inc. (OTC Bulletin Board: UDWK), a leading developer of payment processing solutions, today announced its financial results for its fourth quarter and fiscal year ended March 31, 2010.

Revenue for the quarter ended March 31, 2010 was $2,169,189, representing a 14.3% increase over revenue of $1,897,190 for the prior year period.  Income from operations for the quarter ended March 31, 2010 was $242,512, compared to $73,009 for the prior year period. Net income for the quarter ended March 31, 2010 was $85,379, or $0.00 per share, compared to a net loss of $181,221, or $(0.01) per share, for the prior year period.

Revenue for the fiscal year ended March 31, 2010 increased by 6.7% to $8,531,698, as compared to $7,996,987 for fiscal 2009.  Income from operations for the fiscal year ended March 31, 2010 was $922,968, compared to $679,979 for fiscal 2009.  Net loss for the year ended March 31, 2010 was $19,221, or $(0.00) per share, compared to a net loss of $2,021,453, or $(0.06) per share, for fiscal 2009.

Charles E. Ramey, Chairman and CEO of the Company stated, "We entered fiscal 2010 as a year of transition and began to benefit from certain initiatives toward the end the fiscal year, which concluded on a very positive note, and we anticipate that fiscal 2011 will build upon that momentum.  Specifically, we announced several new relationships, including with the Bankers Banks, which we expect to continue to expand during fiscal 2011. In addition, we introduced ClearHistory, a revolutionary payment history solution that can consolidate long-term storage of all payment transactions that we expect to continue to gain traction among our current customer base and in the marketplace. We see a clear value proposition for ClearHistory as it eliminates the need for traditional payment silos and can improve visibility within ones payments information."

Note Regarding the Company's Restatement of Financials and Prior Release of Unaudited Financial Results

As is more fully explained in the Company Annual Report on Form 10-K for the year ended March 31, 2010 (the "10-K") that it will file with the SEC later today, the Company has restated its previously issued financial statements to correct an error that was identified involving the calculation of option expense for fiscal 2007, 2008 and 2009.  The restated financial statements can be found in Note 10 to the financial statements contained in the 10-K.

Also, as is more fully explained in the 10-K, the Company's audited financial results for the quarter and year ended March 31, 2010 reported today differ from the preliminary unaudited financial results for the same periods previously reported in the Company's Current Report on Form 8-K filed with the SEC on April 23, 2010.  Specifically, the Company's revenue, operating income and net income for the quarter and year ended March 31, 2010 was $812,998 less than previously reported and the Company's stockholders' equity at March 31, 2010 was $1,000,000 less than previously reported.  The reason for this difference was that subsequent to the pre-announcement of financial results, the Company concluded that it was not able to record the effect of certain transactions in the March 2010 quarter (the "March 2010 Transactions") despite the fact that the underlying agreements had been entered into in March 2010.  The Company expects to be able to record the effect of the transactions in fiscal 2011.

Conference Call Information

Interested parties may participate in the call by dialing (877) 869-3847; international callers dial (201) 689-8261 about 5-10 minutes prior to 11:00 AM EDT.  The conference call will also be available on replay starting at 1:00 pm EDT on June 29, 2010, and ending on July 6, 2010.  For the replay, please dial (877) 660-6853 (replay account # 269, replay conference #353114).  The access number for the replay for international callers is (201) 612-7415 (replay account # 269, replay conference #353114).

About US Dataworks

Payments automation solutions from US Dataworks help financial institutions, businesses and government entities deploy an enterprise payments and receivables infrastructure that processes and manages paper-based and electronic transactions more efficiently and with less risk.  Designed to complement an organization's legacy systems and business processes, our enterprise payments solution delivers capabilities for payments processing, retail payments processing, check processing, payments decisioning, and returns management.  US Dataworks also offers a solution that consolidates the archive, management and reporting of any transaction type.  Our agile enterprise payments approach is particularly important as organizations migrate from traditional paper-based payment and billing processes towards electronic payments and straight-through processing.  

For more information visit 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 fiscal 2011, 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, our new solutions' ability to provide a higher return on investment for our clients, our plans for future investment and expansion, and any implications that the statistical performance cited herein will repeat itself in the future.  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 repay or refinance our debt, our failure to make the anticipated investments, our failure to repeat the statistical performance of prior periods, our inability to record the March 2010 Transactions in fiscal 2011 and other risks detailed from time to time in the SEC reports of US Dataworks, Inc., including its Annual Report on Form 10-K for the year ended March 31, 2010.  These forward-looking statements speak only as of the date hereof. US Dataworks, Inc. disclaims any obligation to update these forward-looking statements.

SOURCE US Dataworks, Inc.