Welcome!

@CloudExpo Authors: Liz McMillan, William Schmarzo, Pat Romanski, Mamoon Yunus, Kevin Benedict

News Feed Item

US Dataworks Announces Fiscal 2013 Second Quarter Results

SUGAR LAND, Texas, Nov. 14, 2012 /PRNewswire/ -- US Dataworks, Inc. (OTC Bulletin Board: UDWK), a leader in payment processing solutions, today announced its financial results for its fiscal 2013 second quarter ended September 30, 2012.

Revenue for the second quarter of fiscal 2013 was $1.7 million compared to revenue of $1.7 million for the second quarter of fiscal 2012.  Net loss for the second quarter of fiscal 2013 was $44,000, or $0.00 loss per share, compared to a net loss of $257,000, or $0.01 loss per share, for the second quarter of fiscal 2012.

Conference Call Information

US Dataworks' management has scheduled a conference call to review its fiscal 2013 second quarter results on Thursday, November 15, 2012 at 11:00 a.m. Eastern time, 10:00 a.m. Central time.  To listen to the call, dial (480) 629-9771 at least 10 minutes before the call begins and ask for US Dataworks' conference call.  A replay of the call will be available approximately two hours after the live broadcast ends and will be accessible until November 22, 2012.  To access the replay, dial (303) 590-3030 using a pass code of 4575648#.

Investors, analysts and the general public will also have the opportunity to listen to the conference call over the Internet by visiting www.usdataworks.com.  To listen to the live call on the web, please visit the Company's web site at least fifteen minutes before the call begins to register, download and install any necessary audio software.  For those who cannot listen to the live webcast, an archive will be available shortly after the call.

Additional information about Clearingworks as well as US Dataworks can be found on the company's website at www.clearingworks.com.

About US Dataworks

US Dataworks offers cloud computing on-demand payment processing services with proven enterprise-class payment, deposit, returns processing and powerful payment analytic tools.  US Dataworks is a trusted payments provider to financial institutions, telecommunications providers, content providers, corporate billers and government agencies.

 

 

US DATAWORKS, INC.

UNAUDITED CONDENSED STATEMENTS OF OPERATIONS








For the Three Months Ended        September 30,


For the Six Months Ended        September 30,



2012


2011


2012


2011










 Revenues:









Software transactional and subscription


$

633,794


$

684,908


$

1,283,693


$

1,368,226

Software licensing



7,143



7,268



9,575



98,470

Software maintenance



175,043



163,637



341,962



305,634

Professional services



884,747



826,497



1,277,172



1,410,515

Software resale



8,932



4,301



8,932



76,689














 Total revenues



1,709,659



1,686,611



2,921,334



3,259,534














 Cost of revenues



534,692



542,733



1,022,171



1,103,638














 Gross profit



1,174,967



1,143,878



1,899,163



2,155,896














 Operating expenses:













Research and development



208,849



206,366



440,463



459,607

Sales and marketing



224,598



385,405



503,523



688,856

General and administrative



595,055



638,129



1,153,987



1,196,338

Depreciation and amortization



15,106



22,849



33,735



47,478

Total operating expenses



1,043,608



1,252,749



2,131,708



2,392,279














 Net income (loss) from operations



131,359



(108,871)



(232,545)



(236,383)














 Other expense:













Interest expense



(22,119)



(23,011)



(43,540)



(43,535)

Interest expense – related parties



(141,115)



(124,970)



(290,488)



(249,127)

Unrealized loss on fair value of derivative instruments



(11,760)



--



(11,760)



--

Total other expense



(174,994)



(147,981)



(345,788)



(292,662)














 Net income (loss)


$

(43,635)


$

(256,852)


$

(578,333)


$

(529,045)














Basic earnings (loss) per share


$

(0.00)


$

(0.01)


$

(0.02)


$

(0.02)














Diluted earnings (loss) per share


$

(0.00)


$

(0.01)


$

(0.02)


$

(0.02)














Basic weighted-average shares outstanding



33,551,398



33,401,485



33,534,183



33,382,931














Diluted weighted-average shares outstanding



33,551,398



33,401,485



33,534,183



33,382,931

 

 

US DATAWORKS, INC.

UNAUDITED CONDENSED BALANCE SHEETS







ASSETS


September 30, 2012



March 31, 2012



(Unaudited)




Current assets:






Cash and cash equivalents


$

71,966


$

81,985

Accounts receivable, trade, net of allowance for doubtful accounts at September 30, 2012 and March 31, 2012 of $10,500 and $0, respectively



914,637



437,662

Prepaid expenses and other current assets



223,451



200,636

Total current assets



1,210,054



720,283








Property and equipment, net



161,765



184,387

Goodwill



4,020,698



4,020,698

Other assets



32,111



42,354

Total assets


$

5,424,628


$

4,967,722








LIABILITIES AND STOCKHOLDERS' EQUITY














Current liabilities:







Current portion of long term debt, net of unamortized discount at September 30, 2012 and March 31, 2012 of $4,610 and $0, respectively


$

718,207


$

244,667

Current portion of long term debt – related party, net of unamortized discount at September 30, 2012 and March 31, 2012 of $1,152 and $0, respectively



23,848



--

Accounts payable



538,867



426,895

Accrued expenses



303,067



138,033

Accrued interest – related parties



490,508



383,592

Deferred revenue



436,824



424,191

Derivative instruments



25,160



--

Total current liabilities



2,536,481



1,617,378








Long term liabilities:







Notes payable, net of unamortized discount at September 30, 2012 and March 31, 2012 of $3,810 and $2,557, respectively



103,617



109,078

Notes payable – related parties, net of unamortized discount  at September 30, 2012 and March 31, 2012 of  $194,819 and $267,689, respectively



2,922,426



2,849,556

Total long term liabilities



3,026,043



2,958,634

Total liabilities



5,562,524



4,576,012








Commitments and contingencies














Stockholders' equity (deficit):







Convertible Series B preferred stock, $0.0001 par value, 700,000 shares authorized, 109,933 shares issued and outstanding, $3.75 liquidation preference, dividends of $479,481 and $458,802 in arrears as of September 30, 2012 and March 31, 2012, respectively



11



11








Common stock, $0.0001 par value, 90,000,000 shares authorized,  33,551,773 and 33,485,835 shares issued and outstanding as of September 30, 2012 and March 31, 2012, respectively



3,355



3,348

Additional paid-in-capital



66,641,880



66,593,160

Accumulated deficit



(66,783,142)



(66,204,809)

Total stockholders' equity (deficit)



(137,896)



391,710








Total liabilities and stockholders' equity


$

5,424,628


$

4,967,722








 

 

US DATAWORKS, INC.

UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS

 

For the Six Months Ended September 30,









2012



2011

Cash flows from operating activities:






Net loss from operating activities

$

(578,333)


$

(529,045)

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:






Depreciation and amortization of property and equipment


33,735



47,478

Bad debt expense


15,581



--

Amortization of discount on notes payable


3,618



--

Amortization of discount on notes payable – related parties


73,823



70,075

Amortization of deferred financing costs – related parties


10,243



7,269

Stock based compensation


50,539



19,886

Unrealized loss on fair value of derivative instruments


11,760



--

Changes in operating assets and liabilities:






Accounts receivable


(492,556)



183,010

Prepaid expenses and other current assets


(22,815)



161,940

Accounts payable


111,972



50,231

Accrued expenses


165,034



194,460

Accrued interest – related parties


106,916



149,153

Deferred revenue


12,633



(223,875)







Net cash (used in) provided by operating activities


(497,850)



130,582







Cash flows from investing activities:






Purchase of property and equipment


(11,113)



(20,758)







Net cash used in investing activities


(11,113)



(20,758)







Cash flows from financing activities:






Payments on note payable to bank


--



(174,294)

Payments on secured line of credit


(1,751,383)



(312,690)

Proceeds from secured line of credit


1,507,331



209,714

Payments on factoring facility


(475,214)



--

Proceeds from factoring facility


1,094,860



--

Proceeds from issuance of notes payables and detachable stock warrants


125,000



125,000

Payments on equipment loan payable


(1,650)



(1,650)







Net cash provided by (used in) financing activities


498,944



(153,920)







Net decrease in cash and cash equivalents


(10,019)



(44,096)

Cash and cash equivalents, beginning of period


81,985



44,096

Cash and cash equivalents, end of period

$

71,966


$

--







Supplemental disclosures of cash flow information:






Interest paid

$

151,138


$

28,110

Income taxes paid


--



--







Supplemental disclosures of non-cash financing activities:






In conjunction with the extension of certain existing notes payable and the issuance of new notes payable, the Company issued additional common stock warrants and modified the existing notes to add a common stock conversion feature. As a result, the following balance sheet accounts were affected as follows:






Increased derivative warrant instruments

$

13,400


$

--

Increased note discount on notes payable


11,588



--

Decreased additional paid-in-capital


(1,812)



--


 

 

 

US DATAWORKS, INC.

INCOME STATEMENT DATA

UNAUDITED Non GAAP Reconciliations












For the Three Months ended
September 30,


For the Six Months ended
September 30,



2012


2011


2012


2011

Reconciliation of adjusted EBITDA (See Note 1)









Net income (loss)

$           (43,635)


$           (256,852)


$      (578,333)


$      (529,045)


Depreciation and amortization

15,106


22,849


33,735


47,478


Stock based compensation expense

49,012


8,349


50,539


19,886


Interest

163,234


147,981


334,028


292,662


Adjusted EBITDA (See Note 1)

$          183,717


$            (77,673)


$      (160,031)


$      (169,019)










Reconciliation of EBITDA margin









Revenue

$        1,709,659


$        1,686,611


$     2,921,334


$     3,259,534


Adjusted EBITDA

$           183,717


$            (77,673)


$       (160,031)


$      (169,019)


Margin %

11%


-5%


-5%


-5%




















Note 1:









Adjusted EBITDA is a non-GAAP measure we define as earnings before interest, taxes, depreciation and amortization, and equity compensation expense. We use Adjusted EBITDA as a supplemental financial measure to assess (i) our operating and financial performance without regard to the structure of our financing or the historical cost basis in our assets and (ii) our ability to generate cash flow to cover our interest payments.  Adjusted EBITDA has limitations as an analytical tool and should not be used as a substitute for financial measures presented in accordance with GAAP, including net income, operating income and cash flow from operating activities.  Such limitations include the fact that Adjusted EBITDA does not reflect (i) cash requirements to service interest and principal payments on our debt, (ii) capital expenditure requirements or (iii) income tax payment requirements and income tax accruals.  In addition, companies in our industry may define Adjusted EBITDA differently than we do, thereby limiting its usefulness as a comparative measure.











 

SOURCE US Dataworks, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@CloudExpo Stories
"With Digital Experience Monitoring what used to be a simple visit to a web page has exploded into app on phones, data from social media feeds, competitive benchmarking - these are all components that are only available because of some type of digital asset," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
SYS-CON Events announced today that Secure Channels, a cybersecurity firm, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Secure Channels, Inc. offers several products and solutions to its many clients, helping them protect critical data from being compromised and access to computer networks from the unauthorized. The company develops comprehensive data encryption security strategie...
DevOps at Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to w...
Vulnerability management is vital for large companies that need to secure containers across thousands of hosts, but many struggle to understand how exposed they are when they discover a new high security vulnerability. In his session at 21st Cloud Expo, John Morello, CTO of Twistlock, will address this pressing concern by introducing the concept of the “Vulnerability Risk Tree API,” which brings all the data together in a simple REST endpoint, allowing companies to easily grasp the severity of t...
The question before companies today is not whether to become intelligent, it’s a question of how and how fast. The key is to adopt and deploy an intelligent application strategy while simultaneously preparing to scale that intelligence. In her session at 21st Cloud Expo, Sangeeta Chakraborty, Chief Customer Officer at Ayasdi, will provide a tactical framework to become a truly intelligent enterprise, including how to identify the right applications for AI, how to build a Center of Excellence to...
Recently, WebRTC has a lot of eyes from market. The use cases of WebRTC are expanding - video chat, online education, online health care etc. Not only for human-to-human communication, but also IoT use cases such as machine to human use cases can be seen recently. One of the typical use-case is remote camera monitoring. With WebRTC, people can have interoperability and flexibility for deploying monitoring service. However, the benefit of WebRTC for IoT is not only its convenience and interopera...
Deep learning has been very successful in social sciences and specially areas where there is a lot of data. Trading is another field that can be viewed as social science with a lot of data. With the advent of Deep Learning and Big Data technologies for efficient computation, we are finally able to use the same methods in investment management as we would in face recognition or in making chat-bots. In his session at 20th Cloud Expo, Gaurav Chakravorty, co-founder and Head of Strategy Development ...
Cloud adoption is often driven by a desire to increase efficiency, boost agility and save money. All too often, however, the reality involves unpredictable cost spikes and lack of oversight due to resource limitations. In his session at 20th Cloud Expo, Joe Kinsella, CTO and Founder of CloudHealth Technologies, tackled the question: “How do you build a fully optimized cloud?” He will examine: Why TCO is critical to achieving cloud success – and why attendees should be thinking holistically ab...
The goal of Continuous Testing is to shift testing left to find defects earlier and release software faster. This can be achieved by integrating a set of open source functional and performance testing tools in the early stages of your software delivery lifecycle. There is one process that binds all application delivery stages together into one well-orchestrated machine: Continuous Testing. Continuous Testing is the conveyer belt between the Software Factory and production stages. Artifacts are m...
Connecting to major cloud service providers is becoming central to doing business. But your cloud provider’s performance is only as good as your connectivity solution. Massive Networks will place you in the driver's seat by exposing how you can extend your LAN from any location to include any cloud platform through an advanced high-performance connection that is secure and dedicated to your business-critical data. In his session at 21st Cloud Expo, Paul Mako, CEO & CIO of Massive Networks, wil...
When shopping for a new data processing platform for IoT solutions, many development teams want to be able to test-drive options before making a choice. Yet when evaluating an IoT solution, it’s simply not feasible to do so at scale with physical devices. Building a sensor simulator is the next best choice; however, generating a realistic simulation at very high TPS with ease of configurability is a formidable challenge. When dealing with multiple application or transport protocols, you would be...
As businesses adopt functionalities in cloud computing, it’s imperative that IT operations consistently ensure cloud systems work correctly – all of the time, and to their best capabilities. In his session at @BigDataExpo, Bernd Harzog, CEO and founder of OpsDataStore, presented an industry answer to the common question, “Are you running IT operations as efficiently and as cost effectively as you need to?” He then expounded on the industry issues he frequently came up against as an analyst, and ...
Cloud resources, although available in abundance, are inherently volatile. For transactional computing, like ERP and most enterprise software, this is a challenge as transactional integrity and data fidelity is paramount – making it a challenge to create cloud native applications while relying on RDBMS. In his session at 21st Cloud Expo, Claus Jepsen, Chief Architect and Head of Innovation Labs at Unit4, will explore that in order to create distributed and scalable solutions ensuring high availa...
SYS-CON Events announced today that App2Cloud will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. App2Cloud is an online Platform, specializing in migrating legacy applications to any Cloud Providers (AWS, Azure, Google Cloud).
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. Jack Norris reviews best practices to show how companies develop, deploy, and dynamically update these applications and how this data-first...
Intelligent Automation is now one of the key business imperatives for CIOs and CISOs impacting all areas of business today. In his session at 21st Cloud Expo, Brian Boeggeman, VP Alliances & Partnerships at Ayehu, will talk about how business value is created and delivered through intelligent automation to today’s enterprises. The open ecosystem platform approach toward Intelligent Automation that Ayehu delivers to the market is core to enabling the creation of the self-driving enterprise.
"We're here to tell the world about our cloud-scale infrastructure that we have at Juniper combined with the world-class security that we put into the cloud," explained Lisa Guess, VP of Systems Engineering at Juniper Networks, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Enterprise architects are increasingly adopting multi-cloud strategies as they seek to utilize existing data center assets, leverage the advantages of cloud computing and avoid cloud vendor lock-in. This requires a globally aware traffic management strategy that can monitor infrastructure health across data centers and end-user experience globally, while responding to control changes and system specification at the speed of today’s DevOps teams. In his session at 20th Cloud Expo, Josh Gray, Chie...
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
In his session at 20th Cloud Expo, Mike Johnston, an infrastructure engineer at Supergiant.io, discussed how to use Kubernetes to set up a SaaS infrastructure for your business. Mike Johnston is an infrastructure engineer at Supergiant.io with over 12 years of experience designing, deploying, and maintaining server and workstation infrastructure at all scales. He has experience with brick and mortar data centers as well as cloud providers like Digital Ocean, Amazon Web Services, and Rackspace. H...