US Dataworks (AMEX:UDW)
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- Amended Agreement with Hyundai Syscomm Initiates Purchase Order -
HOUSTON, Feb. 13 /PRNewswire-FirstCall/ -- US Dataworks, Inc. (AMEX:UDW), a leading developer of payment processing solutions, announced today its fiscal third quarter and nine months financial results ended December 31, 2006.
Revenues for the third quarter ended December 31, 2006 were $1,719,887 compared with revenues of $1,086,553 for the same period a year ago. Loss from operations for the third quarter was $222,724 compared to a loss from operations of $587,267 for the third quarter ended December 31, 2005. Net loss for the third quarter was $321,192 or $0.01 per share, compared to a net loss of $800,897 or $0.03 per share, for the corresponding period in the prior year.
Revenues for the nine months ended December 31, 2006 were $4,756,649 compared with the revenues of $4,899,185 for the same period a year ago. Loss from operations for the nine months ended was $1,805,128 compared to an operating loss of $641,495 for the nine months ended December 31, 2005. Net loss for the nine months ended was $1,997,353 or $(0.07) per share, compared to a net less of $770,462 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 with the third quarter financial results, particularly with the growth in software transactional revenues, which grew 125% in the third quarter as a result of both new and past customers increasing their utilization of our software solutions on a transaction fee basis. Professional service revenues continued to remain strong, climbing 50%, from two agreements signed with major financial services companies during that last few months."
"Total revenues rose in excess of 58%, thanks in part to the agreements signed during the first half of fiscal 2007. Our cash burn was minimal in the quarter and we feel very positive about the current quarter and fiscal 2008, especially on the heels of our new relationship with Hyundai Syscomm, which under our amended agreement calls for us to sell through Hyundai, or its designee, 700 ATM units to a major U.S. ATM dealer for the sales price of $3.5 million. Although these orders have the potential to be shipped in the near future, we expect it to be booked in FY 2008. We plan to keep shareholders up to date as events unfold with regards to this new relationship," added Mr. Ramey.
"Another important milestone for US Dataworks will be the new rules for back-office conversions, set to begin next month. The new rule will enable all checks received during the day to be converted at a single location, rather than employ multiple scanners at multiple point-of-sales. As a result, we anticipate higher adoption rates among retailers to use electronic conversion, whereby opening additional audiences for our proprietary Clearingworks(TM) software solution," concluded Mr. Ramey.
A conference call to discuss these results with the financial community is scheduled for today, at 10:30 AM EST. Interested parties may participate in the call by dialing (877) 407-8293; international callers dial (201) 689-8349 about 5-10 minutes prior to 10:30 AM EST. The conference call will also be available on replay starting at 12:30 pm EST on February 13, 2007, and ending on March 13, 2007. For the replay, please dial (877) 660-6853 (replay account # 269, replay conference # 231258). The access number for the replay for international callers is (201) 612-7415 (replay account # 269, replay conference # 231258).
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-KSB for the period ended March 31, 2006 and its quarterly report on Form 10-QSB for the period ended December 31, 2006. These forward-looking statements speak only as of the date hereof. US Dataworks disclaims any obligation to update these forward-looking statements.
CONTACTS:
John Figone, SVP, Business Development
US Dataworks, Inc.
Tel. (713) 934-3855 Fax (713) 934-8127
Donald C. Weinberger/Alisa Steinberg (media)
Wolfe Axelrod Weinberger Assoc. LLC
Tel. (212) 370-4500 Fax (212) 370-4505
US DATAWORKS, INC.
QUARTERLY INCOME STATEMENT DATA
For the nine months ended Dec 31, 2006 and 2005
(UNAUDITED)
as restated
as restated YTD YTD
Three Months Ending Nine Months Ending
December December
2006 2005 2006 2005
---- ---- ---- ----
Revenues
Software
licensing
revenues 94,175 89,109 609,158 1,840,029
Software
transactional
revenues 532,868 236,848 1,138,588 649,452
Software
maintenance
revenues 109,128 104,477 315,677 331,369
Software service
revenues 983,716 656,119 2,693,226 2,078,335
--------- --------- --------- ---------
1,719,887 1,086,553 4,756,649 4,899,185
Cost of sales 540,127 321,100 1,559,854 1,103,956
--------- --------- --------- ---------
Gross profit 1,179,760 765,453 3,196,795 3,795,229
Operating Expenses
General and
administrative 1,364,879 1,261,557 4,896,677 4,167,079
Depreciation and
amortization 37,605 91,163 105,246 269,645
--------- --------- --------- ---------
1,402,484 1,352,720 5,001,923 4,436,724
Loss from operations (222,724) (587,267) (1,805,128) (641,495)
Other income (expense)
Financing costs - (160,000) - (160,000)
Interest expense (49,641) (96,512) (220,418) (241,163)
Interest expense
- related parties (10,938) - (10,938) -
Loss on
extinguishment
of debt - - - (206,000)
Gain/Loss on
Derivatives (37,889) 34,633 (193,960) 453,729
Contingent
liabilities loss - - 222,600 -
Other income
(expense) - 8,249 10,491 24,467
--------- --------- --------- ---------
(98,468) (213,630) (192,225) (128,967)
Loss before
provision for
income taxes (321,192) (800,897) (1,997,353) (770,462)
Provision for
income taxes - - - -
Net loss (321,192) (800,897) (1,997,353) (770,462)
Basic and diluted
loss per share $(0.01) $(0.03) $(0.07) $(0.03)
Basic and diluted
weighted-average
(adjusted for reverse
stock split 1:5)
shares
outstanding 31,003,828 30,037,020 30,612,526 29,684,597
US DATAWORKS, INC.
Quarterly Balance Sheet Analysis
For the quarter ended December 31, 2006
(UNAUDITED)
ASSETS
December
2006
----
Current assets
Cash and cash equivalents 82,507
Accounts receivable, trade 2,591,521
Prepaid expenses and other current assets 167,455
----------
Total current assets 2,841,483
Property and equipment, net 519,351
Goodwill, net 14,133,629
Other assets 30,334
----------
Total assets 17,524,797
==========
LIABILITIES AND SHAREHOLDERS EQUITY
Current liabilities
Current portion of convertible promissory
notes, net of unamortized discount of $92,115 420,618
Notes payable - related parties 539,000
Deferred revenue 771,523
Accounts payable 803,117
Accrued expenses 180,125
Interest payable 7,530
Interest payable - related parties 1,708
Derivative Liability - Compound embed 39,034
Derivative Liability - Warrants 70,826
----------
Total current liabilities 2,833,481
----------
Total liabilities 2,833,481
Shareholders' equity
Convertible series A preferred stock, 0001 par -
Convertible series B preferred stock, 0001 par 55
Common Stock. 0001 par 3,714
Common Stock subscription (1,500,000)
Additional paid in capital 65,295,838
Deferred Compensation -
Accumulated deficit (49,108,291)
----------
Total shareholders' equity 14,691,316
----------
Total liabilities and shareholders' equity 17,524,797
==========
DATASOURCE: US Dataworks, Inc.
CONTACT: John Figone, SVP, Business Development, US Dataworks, Inc.,
+1-713-934-3855, Fax - +1-713-934-8127; Media, Donald C. Weinberger/Alisa
Steinberg, Wolfe Axelrod Weinberger Assoc. LLC, +1-212-370-4500,
Fax - +1-212-370-4505
Web site: http://www.usdataworks.com/