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US Dataworks, Inc. Announces Fiscal Second Quarter Financial Results
Nov 14, 2007 (08:11 AM EST)
HOUSTON, Nov. 14 /PRNewswire-FirstCall/ -- US Dataworks, Inc. , a leading developer of payment processing solutions, announced today financial results for its fiscal 2007 second quarter and six months results ended September 30, 2007.
Revenues for the second quarter ended September 30, 2007 were $1,366,084 compared with revenues of $1,821,673 for the same period a year ago. Loss from operations for the second quarter was $875,677 compared to a loss from operations of $479,186 for the second quarter ended September 30, 2006. Net loss for the second quarter was $845,758 or $0.03 per share, compared to a net loss of $75,793 or $0.00 per share, for the corresponding period in the prior year.
Revenues for the six months ended September 30, 2007 were $2,595,156 compared with the revenues of $3,036,762 for the same period a year ago. Loss from operations for the six months ended was $1,712,747 compared to an operating loss of $1,582,405 for the six months ended September 30, 2006. Net loss for the six months ended was $1,715,019 or $(0.05) per share, compared to a net loss of $1,676,163 or $0.06 per share, for the corresponding period in the prior year.
Charles E. Ramey, Chairman and CEO of US Dataworks said, "We are very encouraged about our continued growth in transactional revenues of 34% in the quarter. This increase is an organic one, as we witnessed an improvement in the number of customers subject to transactional pricing over last year. In addition, as we added new customers, our maintenance revenues grew 127% in the quarter versus the same period last year. Although we don't anticipate long- term growth in our maintenance revenues, we still have an agreement with a significant customer that will generate an additional $400,000 in maintenance revenue in the remainder of fiscal 2008. Despite the losses reported in the quarter, we are taking the necessary steps designed to reach consistent profitability and enhance shareholder value."
A conference call is scheduled for today, at 10:30 AM EST. Interested parties may participate in the call by dialing (877) 407-8037; international callers dial (201) 689-8037 about 5-10 minutes prior to 10:30 AM EST. The conference call will also be available on replay starting at 1:00 pm EST on November 14, 2007, and ending on December 14, 2007. For the replay, please dial (877) 660-6853 (replay account # 305, replay conference # 261523). The access number for the replay for international callers is (201) 612-7415 (replay account # 305, replay conference # 261523).
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 www.usdataworks.com .
Except for the historical information contained herein, the matters set forth in this press release, including, but not limited to the Company's sources of revenue, anticipated decrease in maintenance revenue and statements regarding our profitability and shareholder value 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, our ability to execute our business plan 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 June 30, 2007. These forward-looking statements speak only as of the date hereof. US Dataworks disclaims any obligation to update these forward-looking statements.
QUARTERLY INCOME STATEMENT DATA (UNAUDITED) Three months ended Six months ended September 30, September 30, 2007 2006 2007 2006 Revenues Software licensing revenues 36,922 135,728 106,922 514,983 Software transactional revenues 389,880 291,724 779,389 605,720 Software maintenance revenues 233,796 102,783 425,009 206,549 Software service revenues 705,486 1,291,438 1,283,836 1,709,510 1,366,084 1,821,673 2,595,156 3,036,762 Cost of sales 509,123 497,428 895,082 1,019,728 Gross profit 856,961 1,324,245 1,700,074 2,017,034 Operating Expenses General and administrative 1,686,875 1,768,850 3,328,008 3,531,798 Depreciation and amortization 45,763 34,581 84,813 67,641 1,732,638 1,803,431 3,412,821 3,599,439 Loss from operations (875,677) (479,186) (1,712,747) (1,582,405) Other income (expense) Financing costs (25,976) - (25,976) - Interest expense (6,402) (78,606) (12,803) (170,778) Interest expense - related parties (10,938) - (21,875) - Gain/Loss on Derivatives 73,235 257,383 58,382 (156,071) Contingent liabilities loss - 222,600 - 222,600 Other income (expense) - 2,016 - 10,491 29,919 403,393 (2,272) (93,758) Loss before provision for income taxes (845,758) (75,793) (1,715,019) (1,676,163) Provision for income taxes Net loss (845,758) (75,793) (1,715,019) (1,676,163) Basic and diluted loss per share $(0.03) $(0.00) $(0.05) $(0.06) Basic and diluted weighted -average (adjusted for reverse stock split 1:5) shares outstanding 31,549,103 30,560,591 31,425,462 30,415,806 US DATAWORKS, INC. Quarterly Balance Sheet Analysis For the quarter ended September 30, 2007 (UNAUDITED) ASSETS September 30, 2007 Current assets Cash and cash equivalents 118,047 Accounts receivable, net allowance for doubtful accounts of $250,000 1,031,544 Accounts receivable, net of factored receivables of $169,239 135,390 Prepaid expenses and other current assets 175,116 Total current assets 1,460,097 Property and equipment, net 566,849 Goodwill, net 14,133,629 Other assets 32,111 Total assets 16,192,686 LIABILITIES AND SHAREHOLDERS EQUITY Current liabilities Notes payable - Current 35,279 Notes payable - related parties 500,000 Current portion of convertible promissory notes 256,066 Derivative Liability - Warrants 16,873 Deferred revenue 358,384 Accounts payable 1,484,015 Accrued expenses 980,081 Interest payable - related parties 683 Total current liabilities 3,631,382 Long term Note Payable 70,557 Total liabilities 3,701,939 Shareholders' equity Convertible series A preferred stock, 0001 par Convertible series B preferred stock, 0001 par 55 Common Stock. 0001 par 3,816 Additional paid in capital 64,618,244 Accumulated deficit (52,131,368) Total shareholders' equity 12,490,747 Total liabilities and shareholders' equity 16,192,686 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
CONTACT: John Figone, SVP of Business Development, US Dataworks, Inc.,+1-713-934-3855; or media, Donald C. Weinberger or Alisa Steinberg of WolfeAxelrod Weinberger Assoc. LLC, +1-212-370-4500, fax, +1-212-370-4505, forUS Dataworks, Inc.
Web site: http://www.usdataworks.com//