PYDS Reports First Quarter 2010 Results
Achieved 59% reduction in Selling, General & Administrative Expenses
San Antonio, TX May 12, 20010 Payment Data Systems, Inc. (NASDAQ OTCBB: PYDS) an integrated electronic payments solutions provider, today announced financial results for the quarter ended March 31, 2010.
Revenues decreased from $818,816 for the first quarter of 2009 to $602,488 for the first quarter of 2010 due primarily to the loss of a significant customer, as previously reported in November 2009. However, operating loss for the quarter ended March 31, 2010 improved to $194,346, from a loss of $433,487 for the first quarter of 2009. Net loss for the quarter ended March 31, 2010 improved to $140,055 from a net loss of $436,487 for the first quarter of 2009.
Excluding the effect of non-cash expenses associated with stock-based compensation of $133,650, the net loss for the first quarter of 2010 was only $6,405.
Cash and cash equivalents increased 20% to $485,178 at March 31, 2010 from $405,296 at March 31, 2009.
In the first quarter of 2010, the Company implemented a plan to significantly reduce its Selling, General and Administrative expenses. This resulted in the Company’s Selling, General and Administrative expenses, other than stock-based compensation, decreasing to $168,768 in the first quarter of 2010 from $414,179 for the same period of 2009. Management expects the savings to be larger for the second quarter of 2010 because the changes in expense structure will occur over a full quarter.
Commenting on the results for the quarter, Michael R. Long, Chairman and Chief Executive Officer of Payment Data Systems, said, “We are pleased to see the improvement in the first quarter results from the prior year period. Also, the positive aspects of the previous quarter continue to move into 2010. The cost savings measures we implemented in the first quarter combined with the forecasted sales of our prepaid card issuing and payment acquiring businesses should yield a year of growth in many positive metrics.”
Long continued, “As I indicated in our year end 2009 earnings announcement, we are continuing to execute these tight expense controls until some of our new programs are implemented and take us to our goals of sustained positive cash flow and profitability. Additionally, we believe our greatest potential for achievement of positive cash flow and profitability is supported by our announced Redpack Mi Promesa card program which we expect will have general market availability around the first of June this year. Also, we are in the early stages of implementing our new Corporate Incentive Card programs. We also have several new, unannounced and contracted customers for merchant processing, prepaid card programs, and bill payment services that we expect to begin to generate revenues in the second quarter of 2010. If we assume these contracts produce revenue to the degree the companies have projected and our pipeline of new customers create the anticipated revenue opportunities, we believe 2010 should exceed the expectations we set for ourselves in the final quarters of 2009. Therefore we remain very enthusiastic about the outlook for 2010.”
PAYMENT DATA SYSTEMS,
INC.
CONSOLIDATED
STATEMENTS OF OPERATIONS
(unaudited)
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Three Months Ended March
31, |
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2010 |
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2009 |
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Revenues |
$
602,488 |
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$
818,816 |
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Operating expenses: |
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Cost of services |
486,576 |
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694,585 |
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Selling, general and administrative: |
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Stock-based compensation |
133,650 |
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133,650 |
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Other expenses |
168,768 |
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414,179 |
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Depreciation |
7,840 |
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9,889 |
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Total operating expenses |
796,834 |
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1,252,303 |
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Operating loss |
(194,346) |
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(433,487) |
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Other income (expense): |
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Interest income |
- |
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- |
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Interest expense |
- |
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- |
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Other income (expense) |
60,000 |
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- |
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Total other income (expense), net |
60,000 |
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- |
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Loss before income taxes |
(134,346) |
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(433,487) |
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Income taxes |
5,709 |
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3,000 |
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Net loss |
$ (140,055) |
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$ (436,487) |
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Basic
and diluted net loss per common share |
$
- |
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$
- |
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Weighted average common shares |
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outstanding |
110,778,547 |
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112,524,251 |
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For further information regarding our financial results for the quarter ended March 31, 2010, please read our 10‑Q that was filed on May 12, 2010.
About Payment Data Systems, Inc.Payment Data Systems is an integrated payment solutions provider to merchants and billers. The organization provides an extensive set of products to deliver world-class payment acceptance. Payment Data has solutions for merchants, billers, banks, service bureaus and card issuers. The strength of the company is its ability to offer specifically tailored solutions for card issuance, payment acceptance and bill payments.
For additional information,
Contact Michael Long for Investor Relations information at 210-249-4040 or email at ir@paymentdata.com.
Website: http://www.paymentdata.com
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