Payment Data Systems reports Q1 results

Payment Data Systems, Inc. (OTC BB: PYDS) today announced financial results for the quarter ended March 31, 2005.

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Revenues increased 340% to $242,962 for the first quarter of 2005 from $55,197 for the first quarter of 2004. Net loss for the quarter ended March 31, 2005 was $455,980, or $0.02 per share, compared to net loss of $400,716, or $0.02 per share, for the comparable quarter of 2004.

Commenting on the increase in revenues, Michael R. Long, Chairman and Chief Executive Officer of Payment Data Systems, said, "We are pleased to report that the first quarter of 2005 was up 142% for transactions and up 96% in dollar volume above the fourth quarter of 2004. As a consequence, we saw revenues for the first quarter of 2005 grow 44% from $168,966 in revenues for the preceding fourth quarter with the growth in card processing leading the increase."

Long added, "Revenue generated by our merchant customers was approximately 80% of our total revenues in the first quarter of 2005, and we expect the trend of increasing card-based revenues to continue."

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