PYDS Reports Second Quarter 2010 Results
San Antonio, TX August 17, 2010
Payment Data Systems, Inc. (NASDAQ OTCBB: PYDS) an integrated electronic
payments solutions provider, today announced financial results for the
quarter ended June 30, 2010.
Revenues decreased from $834,993 for the second quarter of 2009 to $601,184
for the second 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 June 30, 2010 improved to $152,388, from an operating
loss of $332,892 for the second quarter of 2009. Excluding the effect of of
non-cash expenses associated with stock-based compensation of $133,650 and
depreciation expenses of $5,792, the operating loss for the second quarter
of 2010 was only $12,896. Net loss for the quarter ended June 30, 2010
improved to $55,174 from a net loss of $335,892 for the second quarter of
2009. Excluding the effect of of non-cash expenses associated with
stock-based compensation of $133,650 and depreciation expenses of $5,792,
net income for the second quarter of 2010 was $84,268.
In the first quarter of 2010, we implemented a plan to cut over half of our
selling, general and administrative expenses, not including our non-cash
expenses associated with stock-based compensation. The second quarter was
the first full quarter under the new expense structure. This resulted in our
selling, general and administrative expenses, other than stock-based
compensation, decreasing from $345,676 for the second quarter of 2009 to
$157,867 in the second quarter of 2010, which was also a 6% improvement from
the first quarter of 2010.
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 sequential improvement in the second quarter results, especially
that our operating losses have declined each month since February 2010 and
the operating loss for the month of June 2010 was less than $2,000 after
adding back non-cash stock-based compensation expenses and depreciation.
Consequently, I am also pleased to see that our operations are poised to
enter a cash flow generation stage. With the continued improvement in our
monthly operating losses, and with the new revenue sources coming into play
in the third quarter, we expect to generate positive cash flow in the third
quarter. While I am pleased with the growth of our existing revenue sources,
I am excited to see the launch of the RedPack Mi Promesa Card and the
Corporate Incentive card programs. We expect to add at least one new
corporate customer for the incentive program in each week of the third
quarter. Our ability to print cards on demand is turning into a competitive
advantage for us. ”
PAYMENT DATA SYSTEMS,
INC.
CONSOLIDATED
STATEMENTS OF OPERATIONS
(unaudited)
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Three Months Ended June
30, |
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Six Months Ended June 30, |
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2010 |
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2009 |
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2010 |
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2009 |
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Revenues |
$
604,184 |
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$
834,993 |
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$
1,206,672 |
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$
1,653,809 |
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Operating expenses: |
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Cost of services |
459,213 |
|
679,076 |
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945,789 |
|
1,373,661 |
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Selling, general and
administrative: |
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Non Cash Stock-based
compensation |
133,650 |
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133,650 |
|
267,300 |
|
267,300 |
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Other expenses |
157,867 |
|
345,676 |
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326,635 |
|
759,855 |
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Depreciation |
5,792 |
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9,483 |
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13,631 |
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19,372 |
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Total operating expenses |
756,522 |
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1,167,885 |
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1,553,355 |
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2,420,188 |
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Operating loss |
(152,338) |
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(332,892) |
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(346,683) |
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(766,379) |
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Other income (expense): |
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Interest income |
- |
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- |
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- |
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- |
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Interest expense |
- |
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- |
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- |
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- |
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Other income (expense) |
100,000 |
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- |
|
160,000 |
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- |
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Total other income (expense), net |
100,000 |
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- |
|
160,000 |
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- |
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Loss before income taxes |
(52,338) |
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(332,892) |
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(186,683) |
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(766,379) |
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Income taxes |
2,836 |
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3,000 |
|
8,545 |
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6,000 |
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Net loss |
$
(55,174) |
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$
(335,892) |
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$
(195,228) |
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$
(772,379) |
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Basic and diluted net loss
per common share: |
$
0.00 |
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$
0.00 |
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$
0.00 |
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$
(0.01) |
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Weighted average common
shares |
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outstanding |
123,162,063 |
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111,513,842 |
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117,004,514 |
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112,016,255 |
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, www.ficentive.com, www.zbill.com
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