US Dataworks (AMEX:UDW)
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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, 2006.
Revenues for the first quarter ended June 30, 2006 were $1,215,088 compared with revenues of $1,080,339 for the same period a year ago. Operating loss for the first quarter was $1,103,219 compared to an operating loss of $939,962 for the first quarter ended June 30, 2005. Net loss for the first quarter was $1,600,370 or $(0.05) per share, compared to a net loss of $778,499 or $(0.03) per share, for the corresponding period in the prior year.
Charles E. Ramey, Chairman and CEO of US Dataworks said, "Our revenues increased by 13% during the first quarter of our fiscal 2007 as transactional revenues grew as a result of both new and past customers increasing their utilization of our software solutions."
"Although we reported a loss for the quarter, we continue to believe that our leveraged business model will produce future profits on an on-going basis. Many of the agreements announced in the quarter, like those with various financial services companies including Online Resources Corp. (ORCC), Bank of Oklahoma, and a significant financial transaction processor, are beginning to take hold. Specifically, our strategic alliance with one of the largest merchant service providers that has enabled them to sell our Clearingworks product as part of their Account Receivable Check (ARC) and back office conversion services, will be a backbone to our future profitability. Combined, we believe these relationships will continue the company's growth into the balance of fiscal 2007."
A conference call is scheduled for today, at 10:00 AM EDT. Interested parties may participate in the call by dialing (877) 407-8293; international callers dial (201) 689-8349 about 5-10 minutes prior to 10:00 AM EDT. The conference call will also be available on replay starting at 12:00 noon EDT on August 14, 2006, and ending on September 14, 2006. For the replay, please dial (877) 660-6853 (replay account # 269, replay conference # 211162). The access number for the replay for international callers is (201) 612-7415 (replay account # 269, replay conference # 211162).
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 the Company's belief that it will be "well positioned" for 2007 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 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, 2006 and its quarterly report on Form 10-Q for the period ended December 31, 2005. These forward-looking statements speak only as of the date hereof. US Dataworks disclaims any obligation to update these forward-looking statements.
US DATAWORKS, INC.
QUARTERLY INCOME STATEMENT DATA
For the three months ended June 30, 2006 and 2005
(UNAUDITED)
as restated
June June Net %
2006 2005 Change Change
Revenues
Software licensing revenues 379,255 299,120 80,135 26.8%
Software transactional
revenues 313,996 181,243 132,753 73.2%
Software maintenance
revenues 103,765 92,326 11,439 12.4%
Software service revenues 418,072 507,650 (89,578) -17.6%
1,215,088 1,080,339 134,749 12.5%
Cost of sales 522,299 377,501 144,798 38.4%
Gross profit 692,789 702,838 (10,049) -1.4%
Operating Expenses
General and
administrative 1,762,948 1,554,275 208,673 13.4%
Depreciation and
amortization 33,060 88,525 (55,465) -62.7%
1,796,008 1,642,800 153,208 9.3%
Loss from operations (1,103,219) (939,962) (163,257) 17.4%
Other income (expense)
Financing costs - - - -
Interest expense (92,172) (53,605) (38,567) 71.9%
Interest expense -
related parties - - - -
Loss on extinguishment
of debt - - - -
Loss on extinguishment
of debt-related party - - - -
Investor litigation
settlement expense - - - -
Gain/Loss on Derivatives (413,454) 208,269 (621,723) -298.5%
Contingent liabilities
loss - -
Other income (expense) 8,475 6,799 1,676 24.6%
(497,151) 161,463 (658,614) -407.9%
Loss before provision
for income taxes (1,600,370) (778,499) (821,871) 105.6%
Provision for
income taxes - - -
Net loss (1,600,370) (778,499) (821,871) 105.6%
Basic and diluted
loss per share (0.05) $(0.03) $(0.02) 76.2%
Basic and diluted
weighted -average
(adjusted for reverse
stock split 1:5)shares
outstanding 30,269,429 28,972,005 1,297,424 4.5%
US DATAWORKS, INC.
Quarterly Balance Sheet Analysis
For the quarter ended June 30, 2006
(UNAUDITED)
ASSETS June March
2006 2006
Current assets
Cash and cash equivalents 657,184 1,290,438
Accounts receivable, net allowance
for doubtful accounts 2,264,469 1,491,688
Costs and estimated earnings in
excess of billings on uncompleted contracts - 238,000
Prepaid expenses and other current assets 230,388 166,514
Total current assets 3,152,041 3,186,640
Property and equipment 2,068,785 2,055,975
Accumulated Amortization and depreciation (1,616,928) (1,583,868)
Goodwill, net 14,133,629 14,133,629
Other assets 43,224 43,224
Total assets 17,780,750 17,835,600
LIABILITIES AND SHAREHOLDERS EQUITY
Current liabilities
Notes payable
Notes payable - related parties 39,000 39,000
Current portion of convertible
promissory notes 1,076,799 1,128,133
Current portion of convertible
promissory notes unamortized discount (350,509) (529,345)
Derivative Liability - Compound embed 326,274 118,416
Derivative Liability - Warrants 188,521 112,830
Contingent liabilities 222,600 222,600
Deferred revenue 739,739 216,754
Accounts payable 496,680 231,412
Accrued expenses 229,524 239,938
Interest payable 60,877 41,672
Total current liabilities 3,029,505 1,821,410
Long term convertible promissory note 256,066 358,733
Long term convertible promissory notes
unamortized discount -
Total liabilities 3,285,571 2,180,143
Shareholders' equity
Convertible series A preferred stock,
.0001 par
Convertible series B preferred stock,
.0001 par 55 55
Common Stock .0001 par 3,044 3,013
Additional paid in capital 63,202,788 62,762,727
Accumulated deficit (48,710,708) (47,110,338)
Total shareholders' equity 14,495,179 15,655,457
Total liabilities and
shareholders' equity 17,780,750 17,835,600
Shareholders' equity
Convertible series A preferred stock,
.0001 par, $2.50 liquidation preference
Authorized 800,000 800,000
Issued and outstanding
Dividends in arrears
Convertible series B preferred stock,
.0001 par, $0.75 liquidation preference
Authorized 700,000 700,000
Issued and outstanding 549,667 549,667
Dividends in arrears
Common Stock .0001 par
Authorized 90,000,000 90,000,000
Issued and outstanding
(adjusted for the 1:5 reverse
stock split) 30,437,877 30,126,764
CONTACTS:
John Figone, SVP, 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
DATASOURCE: US Dataworks, Inc.
CONTACT: John Figone, SVP, Business Development, of US Dataworks, Inc.,
+1-713-934-3855 ; or Donald C. Weinberger, or Alisa Steinberg, media, both of
Wolfe Axelrod Weinberger Assoc. LLC, for US Dataworks, Inc.
Tel. +1-212-370-4500, or Fax +1-212-370-4505
Web site: http://www.usdataworks.com/