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US Dataworks Q3 revenue up, income down on higher spending

17 February 2010  |  2678 views  |  0 Source: US Dataworks

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 ou 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.

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