Welcome!

@CloudExpo Authors: Pat Romanski, Janakiram MSV, Kevin Benedict, Elizabeth White, Peter Silva

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
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th 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 wait for long dev...
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
SYS-CON Events announced today that StarNet Communications will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. StarNet Communications’ FastX is the industry first cloud-based remote X Windows emulator. Using standard Web browsers (FireFox, Chrome, Safari, etc.) users from around the world gain highly secure access to applications and data hosted on Linux-based servers in a central data center. ...
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...
StarNet Communications Corp has announced the addition of three Secure Remote Desktop modules to its flagship X-Win32 PC X server. The new modules enable X-Win32 to safely tunnel the remote desktops from Linux and Unix servers to the user’s PC over encrypted SSH. Traditionally, users of PC X servers deploy the XDMCP protocol to display remote desktop environments such as the Gnome and KDE desktops on Linux servers and the CDE environment on Solaris Unix machines. XDMCP is used primarily on comp...
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
As the world moves toward more DevOps and Microservices, application deployment to the cloud ought to become a lot simpler. The Microservices architecture, which is the basis of many new age distributed systems such as OpenStack, NetFlix and so on, is at the heart of Cloud Foundry - a complete developer-oriented Platform as a Service (PaaS) that is IaaS agnostic and supports vCloud, OpenStack and AWS. Serverless computing is revolutionizing computing. In his session at 19th Cloud Expo, Raghav...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, wil...
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
Enterprises have forever faced challenges surrounding the sharing of their intellectual property. Emerging cloud adoption has made it more compelling for enterprises to digitize their content, making them available over a wide variety of devices across the Internet. In his session at 19th Cloud Expo, Santosh Ahuja, Director of Architecture at Impiger Technologies, will introduce various mechanisms provided by cloud service providers today to manage and share digital content in a secure manner....
SYS-CON Events announced today that Hitrons Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Hitrons Solutions Inc. is distributor in the North American market for unique products and services of small and medium-size businesses, including cloud services and solutions, SEO marketing platforms, and mobile applications.
SYS-CON Events announced today that eCube Systems, a leading provider of middleware modernization, integration, and management solutions, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. eCube Systems offers a family of middleware evolution products and services that maximize return on technology investment by leveraging existing technical equity to meet evolving business needs. ...
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
Pulzze Systems was happy to participate in such a premier event and thankful to be receiving the winning investment and global network support from G-Startup Worldwide. It is an exciting time for Pulzze to showcase the effectiveness of innovative technologies and enable them to make the world smarter and better. The reputable contest is held to identify promising startups around the globe that are assured to change the world through their innovative products and disruptive technologies. There w...