SAN ANTONIO, Texas, Aug. 14, 2013 (GLOBE NEWSWIRE) -- Payment Data Systems, Inc. (OTCBB:PYDS) an integrated electronic payments solutions provider, today announced financial results for the quarter ended June 30, 2013.
Revenues for the quarter ended June 30, 2013 were $930,830 as compared to $1,469,702 for the same period in the prior year due to lower transaction volumes in echeck processing. While the Company's credit card and debit card processing transactions were at the 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 June 30, 2013, which, ultimately, resulted in reduced revenue. Operating income for the quarter ending June 30, 2013 was a loss of $321,900 when compared to an operating income of $134,873 for the same period in the prior year. The Company reported a net loss for the quarter ended June 31, 2013 of $266,484 as compared to net income of $104,306 for the same period in the prior year.
Highlights for the second quarter of 2013 include:
- Credit card and debit card processing transactions were the highest the Company has ever experienced in any previous quarter in its history and represented an 18% growth in dollars processed over the same period in 2012 and a 10% growth over the first quarter of 2013.
- Cash and cash equivalents grew to $2,349,675 in the second quarter of 2013 from $1,896,487 in the second quarter of 2012.
- Working capital improved to $450,645 in the second quarter of 2013 as compared to working capital of $141,134 in the second quarter of 2012.
- Total transaction dollar volume processed exceeded sixty-six million dollars for the second quarter of 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. We intend to position our Company for a national listing and believe we are being strategic in our plans to accelerate the growth of Payment Data Systems. We continue to be debt free and are seeing continued interest by new prospective customers for our services, including financial institutions.
Mr. Long continued, "Also during the second quarter, we continued to add redundancy and operational upgrades to our national data center. This activity has been very important in order to maintain our leading position and certification with our sponsor banks and our customers. We also invested in the development of an innovative product line to allow financial institutions to offer turn-key prepaid card programs that allow their respective customers to upload personal photos to the image on the front of the card. These products which include gift cards, corporate incentive pre-paid, general purpose reloadable pre-paid, and payroll cards. All products have been well received and all banks to whom we have presented the products indicate they are preparing their 2014 budgets for implementation planned to begin in early 2014. Additionally, based on current discussions with both banks and potential customers, we anticipate 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."
|PAYMENT DATA SYSTEMS, INC.|
|CONSOLIDATED STATEMENTS OF OPERATIONS|
|Three Months Ended June 30,||Six Months Ended June 30|
|Cost of services||823,788||908,093||1,650,088||1,680,471|
|Selling, general and administrative:|
|Total operating expenses||1,252,730||1,334,829||2,534,891||2,571,717|
|Operating income (loss)||(321,900)||134,873||(544,558)||193,854|
|Other income and (expense):|
|Realized/unrealized gain (loss) on marketable securities||62,319||(15,151)||52,070||(15,151)|
|Other income (expense), net||97||(416)||573||9,675|
|Total other income and (expense)||62,416||(15,567)||52,643||(5,476)|
|Income (loss) before income taxes||(259,484)||119,306||(491,915)||188,378|
|Net income (loss)||$(266,484)||$104,306||$(498,915)||$173,378|
|Basic and diluted earnings (net loss) per common share:||$0.00||$0.00||$0.00||$0.00|
|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.
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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.
Source:Payment Data Systems, Inc.