6/29/09 - US Dataworks, Inc. Announces Profitable Fiscal 2009 Financial Results
- Revenues increase by 40% over prior year -
- Management to Host Conference Call Today at 10am EDT -
HOUSTON, June 29 /PRNewswire-FirstCall/ -- US Dataworks, Inc. (Amex: UDW - News), a leading developer of payment processing solutions, today announced its financial results for its fiscal year 2009.
Revenues increased by 39.9% in fiscal 2009 to $7,996,987, as compared to $5,717,593 in fiscal 2008. Transactional revenues increased 16.8% to $2,158,409 in fiscal 2009, as compared to $1,848,130 in fiscal 2008. The increase in transactional revenue was primarily attributable to new customers added during the fiscal year and a steady growth of transactions processed by our existing customers. Professional service revenues increased 66.7% to $4,700,476 in fiscal 2009, as compared to $2,820,332 in fiscal 2008. The increase in professional service revenue was primarily attributable to the consulting agreements with major customers and related purchase orders.
Cost of sales, which principally includes the costs of the personnel who perform the services associated with our software maintenance, support, training and installation activities, increased by $195,024, or 9.9%, from $1,964,555 in fiscal 2008 to $2,159,579 in fiscal 2009. However, gross profit as a percentage of total revenues increased from 65.6% in fiscal 2008 to 73.0% in fiscal 2009. This gross margin increase is primarily due to the significant increase in transactional revenue in fiscal 2009 as compared to fiscal 2008.
Total operating expenses decreased by $11,318,381, or 68.9%, from $16,438,670 in fiscal 2008 to $5,120,289 in fiscal 2009. The decrease in operating expenses was principally attributable to the goodwill impairment expense of $10,112,931 recorded in fiscal 2008, as compared to no goodwill impairment charges in fiscal 2009, and to a $1,236,967 decrease in general and administrative expense in fiscal 2009, as compared to fiscal 2008. The decrease in general and administrative expense is primarily attributable to a $940,000 decrease in compensation expense, a $160,000 decrease in the use of outside services and $127,000 decrease in insurance, office, and marketing expenses. Management anticipates that operating expenses will increase slightly over the coming year as the Company continues to maintain and expand its customer base.
Total other income (expense), including interest expense and financing costs, decreased $3,712,173, from income of $1,010,741 in fiscal 2008 to an expense of $(2,701,432) in fiscal 2009. The decrease is principally due to the $2,253,946 in interest expense charge incurred when $4,000,000 in convertible notes were refinanced in August 2008 (due to the acceleration of the unamortized balance of the original issue discount on such notes and the acceleration of the unamortized portion of the financing costs for such notes) and a reduction in the gain on derivatives associated with the debt feature of such convertible notes of $1,072,956 recorded in fiscal 2009 as compared to fiscal 2008.
Charles E. Ramey, Chairman and CEO of the Company stated, "We are pleased with our results for fiscal 2009. Our increase in recurring revenue, particularly transactional revenue, bodes well for our financial stability going forward. Our ability to deliver our revenue growth of 40% with a high gross profit margin of 73% and an EBITDA margin of 15% was also due to our restructuring and our effective cost management." |
