- Total Revenues Increase 68.3% Over Prior Year Period -
- Company Records Operating Profit -
HOUSTON, Aug. 14 /PRNewswire-FirstCall/ -- US Dataworks, Inc. (Amex: UDW),
a leading developer of payment processing solutions, today announced financial
results for its fiscal first quarter ended June 30, 2008.
Revenues for the first quarter ended June 30, 2008 were $2,069,049
compared with revenues of $1,229,071 for the same period a year ago, an
increase of 68.3%. The Company reported an operating profit for the first
quarter of $107,148 compared to an operating loss of $837,072 for the first
quarter ended June 30, 2007, an improvement of $944,220. Income from
operations for the first quarter was $107,148 or $0.00 per share, compared to
an operating loss of ($837,072) or $(0.03) per share, for the corresponding
period in the prior year.
Charles E. Ramey, Chairman and CEO of US Dataworks said, 'I am pleased to
report a strong quarter which yielded an operating income in spite of
incurring restructuring charges during the quarter. While software license
revenues were down, our other revenue sources improved in the quarter, the
significant increase was due to a 120% increase in professional service
revenues. Other revenue sources also showed growth as transactional revenues
increased by 38% due to the increase in utilization of our software solutions
by current and new customers. Maintenance revenue was up 20% in the quarter.'
'The Company's return to profitability on an operating basis was assisted
by the increase in revenues, which created improved margins. Specifically, our
gross margin was 74% in the first quarter, versus 69% one year ago. In
addition, as we've streamlined our business and eliminated expenses as
announced a few months ago, our general and administrative expenses fell by
16%. While we still have additional work to do in order to continue our
growth, this quarter marks an excellent start to recording future profits,'
added Mr. Ramey.
A conference call is scheduled for today, at 11:00 AM EDT. 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 p.m. EDT on
August 14, 2008, and ending on August 21, 2008. For the replay, please dial
(877) 660-6853 (replay account # 269, replay conference # 294195). The access
number for the replay for international callers is (201) 612-7415 (replay
account # 269, replay conference # 294195).
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.
Except for the historical information contained herein, the matters set
forth in this press release, including, but not limited to, statements
regarding the anticipated benefits of the Company's restructuring, the
Company's profitability and its ability to continue to record profits in the
future, and the anticipated demand the Company's products, 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 risk that customers may cease using our products, the
impact of alternative technological advances and competitive products, market
fluctuations 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 period ended
March 31, 2007 and its quarterly report on Form 10-Q for the period ended
December 31, 2007. These forward-looking statements speak only as of the date
hereof. US Dataworks disclaims any obligation to update these forward-looking
statements.
- Financial Tables to Follow -
US DATAWORKS, INC.
QUARTERLY INCOME STATEMENT DATA
For the quarters ended June 30, 2008 and 2007
(UNAUDITED)
June 30, June 30, Net %
2008 2007 Change Change
Revenues
Software licensing
revenues 30,000 70,000 (40,000) -57.1%
Software transactional
revenues 537,749 389,508 148,241 38.1%
Software maintenance
revenues 228,874 191,213 37,661 19.7%
Software service
revenues 1,272,426 578,350 694,076 120.0%
2,069,049 1,229,071 839,978 68.3%
Discounts on Sales - - - -
Net Revenue 2,069,049 1,229,071 839,978 68.3%
Cost of sales 537,494 385,959 151,535 39.3%
Gross profit 1,531,555 843,112 688,443 81.7%
Operating Expenses
General and
administrative 1,376,356 1,641,134 (264,778) -16.1%
Depreciation and
amortization 48,051 39,050 9,001 23.0%
Goodwill Impairment - - - -
1,424,407 1,680,184 (255,777) -15.2%
Income/(loss) from
operations 107,148 (837,072) 944,220 -112.8%
Other income (expense)
Interest expense (303,716) (6,401) (297,315) 4644.8%
Interest expense
- related parties (10,907) (10,938) 31 -0.3%
Gain/loss on change
in value of
derivatives
liabilities 41,080 (14,853) 55,933 -376.6%
Other income
(expense), net 56,914 - 56,914 -
(216,629) (32,192) (184,437) 572.9%
Loss before provision
for income taxes (109,481) (869,264) 759,783 -87.4%
Basic and diluted
loss per share (0.00) (0.03) 0 -87.7%
Basic and diluted
weighted-average
shares
outstanding 31,137,687 31,300,462 (162,775) -0.5%
US DATAWORKS, INC.
Quarterly Balance Sheet Analysis
For the quarter ended June 30, 2008
(UNAUDITED)
ASSETS June 30,
2008
Current assets
Cash and cash equivalents 1,067,318
Accounts receivable, trade 1,088,678
Prepaid expenses and other current assets 212,904
Total current assets 2,368,900
Property and equipment, net 430,635
Goodwill, net 4,020,698
Other assets 327,387
Total assets 7,147,620
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Current portion of long term debt 35,279
Derivative - Compound embedded 359,527
Derivative - Warrants 220,674
Deferred revenue 470,848
Accounts payable 383,630
Accrued Interest - related party 29,095
Accrued expenses 235,812
Note payable - related Party 500,000
Convertible promissory note, net of
unamortized discount of $1,830,101 2,169,899
Total current liabilities 4,404,764
Long term debt 44,098
Total liabilities 4,448,862
Shareholders' equity
Convertible series B preferred
stock, $0.0001 par 55
Common Stock $0.0001 par 3,226
Additional paid in capital 64,864,830
Unissued Common Stock 31,367
Accumulated deficit (62,200,720)
Total shareholders' equity 2,698,758
Total liabilities and shareholders'
equity 7,147,620
CONTACTS:
Charles Ramey, CEO Donald C. Weinberger/Alisa Steinberg (media)
US Dataworks, Inc. Wolfe Axelrod Weinberger Assoc. LLC
(281) 504-8100 Tel. (212) 370-4500 Fax (212) 370-4505
SOURCE US Dataworks, Inc.
