SAN ANTONIO, Nov. 14, 2013 (GLOBE NEWSWIRE) -- Payment Data Systems, Inc. (OTCBB:PYDS), an integrated electronic payments solutions provider, today announced financial results for the quarter ended September 30, 2013.
Revenues for the quarter ended September 30, 2013 were $962,633 as compared to $2,333,698 for the same period in the prior year due to lower transaction volumes in echeck and prepaid card processing. While the Company's credit card and debit card processing transactions were at the second highest volume it has ever experienced in any quarter to date, the Company experienced lower ACH transaction volumes and prepaid card volumes for the three and six months ended September 30, 2013, which, ultimately, resulted in reduced revenue. Operating income for the quarter ending September 30, 2013 was a loss of $269,227 when compared to an operating income of $621,025 for the same period in the prior year. The Company reported a net loss for the quarter ended September 30, 2013 of $339,825 as compared to net income of $626,742 for the same period in the prior year.
Highlights for the third quarter of 2013 include:
- Credit card and debit card processing transactions were the second highest the Company has ever experienced in any quarter in its history and represented an 17% growth in dollars processed over the same period in 2012 and a 14% growth in transactions processed over the same period in 2012.
- Total transaction dollar volume processed exceeded seventy-six million dollars for the third quarter of 2013.
- The quarter's electronic check transaction volumes were up 40% and returned check transactions were up 622% as compared to second quarter of 2013.
- September 2013 electronic check transaction volumes were up 79% and returned check transactions were up 1646% as compared to August 2013.
Commenting on the results for the quarter, Michael R. Long, Chairman and Chief Executive Officer of Payment Data Systems, said, "This quarter, we continued our record-setting growth in credit and debit card processing and acquired a number of customers late in the quarter. These new customers started processing in the last two weeks of the quarter and have caused our Company to experience high volume increases in our echeck processing. We continue to be debt free and are continuing to see interest in our services by new prospective customers, including financial institutions.
Mr. Long continued, "In the previous quarter we projected the restoration of a significant portion of our echeck revenue by late 3rd quarter of 2013 carrying us into 4th quarter, which should lead to our return to quarterly income generation. I am thrilled to announce that we have made significant progress with the new, high volume, echeck customers we added in the third quarter. I believe our financial metrics for the fourth quarter of 2013 will be significantly impacted in a positive manner. As of yesterday, the fourth quarter's electronic check transaction volumes were already up 203% and returned check transactions were up 1,287% as compared to third quarter of 2013."
|PAYMENT DATA SYSTEMS, INC.|
|CONSOLIDATED STATEMENTS OF OPERATIONS|
|Three Months Ended September 30,||Nine Months Ended September 30|
|Revenues||$ 962,633||$ 2,333,698||$ 2,952,966||$ 5,099,269|
|Cost of services||824,857||1,272,169||2,474,945||2,952,838|
|Selling, general and administrative:|
|Total operating expenses||1,231,860||1,712,673||3,766,751||4,284,391|
|Operating income (loss)||(269,227)||621,025||(813,785)||814,878|
|Other income and (expense):|
|Realized/unrealized gain (loss) on marketable securities||(59,584)||17,450||(7,514)||2,299|
|Other income (expense), net||78||(724)||651||8,952|
|Total other income and (expense)||(59,506)||16,726||(6,863)||11,251|
|Income (loss) before income taxes||(328,733)||637,751||(820,648)||826,129|
|Net income (loss)||$ (339,825)||$ 626,742||$ (838,740)||$ 800,120|
|Basic and diluted earnings ( loss) per common share:||$0.00||$0.00||$0.00||$ 0.01|
|Weighted average common shares outstanding|
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.
FORWARD-LOOKING STATEMENTS DISCLAIMER
Except for the historical information contained herein, the matters discussed in this release include certain forward-looking statements, which are intended to be covered by safe harbors. Those statements include, but may not be limited to, all statements regarding the Company's and management's intent, belief and expectations, such as statements concerning the Company's future and its operating and growth strategy. Investors are cautioned that all forward-looking statements involve risks and uncertainties including, without limitation, the factors detailed from time to time in the Company's filings with the Securities and Exchange Commission. One or more of these factors have affected, and in the future could affect, the Company's businesses and financial results and could cause actual results to differ materially from plans and projections. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the Company's objectives and plans will be achieved. All forward-looking statements made in this release are based on information presently available to the Company's management. The Company assumes no obligation to update any forward-looking statements, except as required by law.
CONTACT: Michael Long Investor Relations 210.249.4040 email@example.comSource:Payment Data Systems, Inc.