Payment Data Systems Reports 2004 Results; Revenue Up 200 Percent Year Over Year
March 08 2005 - 6:00AM
PR Newswire (US)
Payment Data Systems Reports 2004 Results; Revenue Up 200 Percent
Year Over Year SAN ANTONIO, March 8 /PRNewswire-FirstCall/ --
Payment Data Systems, Inc. (OTC:PYDS) (BULLETIN BOARD: PYDS) today
announced financial results for the year ended December 31, 2004.
Year over year, revenues increased 200% to $357,566 for 2004 from
$119,297 for 2003. Operating loss for 2004 also improved to
$1,439,877 from $1,875,411 for 2003. Net loss for 2004 was
$1,514,531, or $0.07 per share, compared to net income of $484,896,
or $0.02 per share, for 2003, which included a net gain on
discontinued operations of $2,259,195. Commenting on the increase
in revenues, Michael R. Long, Chairman and Chief Executive Officer
of Payment Data Systems, said, "We are pleased with our performance
for 2004 after only beginning to process credit cards in the fourth
quarter of 2003. Throughout the year, we experienced steady and
consistent growth from month to month that suggests our products
and services bring value to the marketplace. In particular, during
the latter months of 2004, we began to see a significant shift in
our business as the customer signings became larger and transaction
growth began to increase among incumbent customers. As such,
revenues for the fourth quarter of 2004 grew 144% to $168,966 from
$69,201 in revenues for the preceding third quarter with the growth
in card processing leading the increase. The trend of increasing
card-based revenues is expected to continue in 2005. "While the
transactions are growing, we believe there are many reasons for
this good news. I think we have to review the entire year of 2004
in order to fully comprehend the many integrated factors that I
consider the stimuli for the increasing revenues. Here are a few
examples: * We announced delivery of leading technology with highly
adaptable and flexible functionality to bring value and savings to
our customers and convenience to their consumers. Key examples are
the bill payment patent we filed last year related to debit cards;
our highly successful Customer Service Representative web-based
product for one time and recurring payment set-up and management
and the account-to- account transfer product. * We recently
announced an account update function to our Customer Service
Representative web-based product designed to eliminate unnecessary
contact with recurring payment credit card customers. * We entered
new market segments such as charitable giving, consumer credit
counseling, telecommunications and insurance that we envision as
opportunities for future penetration into those markets. * We
delivered our debit card into the consumer lending industry that
has shown significant growth potential for us through the initial
delivery of 50,000 debit cards. Debit cards open additional doors
for us in the areas of payroll cards, per diem cards, gift cards,
and many others, all empowering us to deliver an expansive and
tailored solution set to numerous companies and organizations. *
Credit Payment Services will soon complete its first quarter of
debit card distribution and remains on track to generate up to
$1,000,000 in revenue for us in 2005. * We expanded debit card
distribution through Secure Cash Network's affiliate programs and
with Payment Data Systems providing the technology to power the
http://www.reloadhere.com/ site for debit cards. * We announced our
partnership with Secure Cash Network for providing the two-card
Pronto Banco, which is focused on the Hispanic unbanked community.
This two-card implementation supports international transfers or
remittances into other countries. In 2004, 16.4 billion dollars
were transferred to Mexico and it is expected that this figure will
grow by a historic 17.4 percent per year creating a significant
market opportunity for us. * We entered into key relationships with
other innovative partners such as Network1, Kubra, and Central
Bancard that have provided us the opportunity to expand technology
and services to new communities of customers. We expect these
partnerships to expand further in 2005. We have also expanded our
Investor Relations communications and outreach program designed to
help keep our shareholders current with company progress and
direction. It is additionally intended to raise awareness in the
public consciousness regarding the growth and success of Payment
Data Systems, Inc." Long continued, "For the many of you that know
me, you know that I am not given to hyperbole or exaggeration. I
can say with a great deal of confidence that the remaining months
of 2005 bring me great enthusiasm and excitement. We remain fully
committed to our strategy of growth through both organic means and
acquisitions and continue to work hard on key things such as
secured funding to allow sustainability to profits and a rational
growth projection model that outlines our path to profitability.
There are clearly challenges ahead as well as extraordinary and
plentiful opportunities. Challenges only make us stronger and
opportunities make us healthier. I am looking forward to a strong
and successful year in 2005." About Payment Data Systems, Inc.
Payment Data Systems, Inc., is an Integrated Payments Solution
Provider delivering comprehensive, cost-effective solutions to
billers and retailers for the processing and management of
electronic payments via the Internet, point of sale, or payments
taken by Customer Service Representatives or an Interactive Voice
Response (IVR). Additional products available from PDS include
services and products that can be implemented more quickly and less
expensively than the alternative of adding multiple payments
companies as these solutions offer a full range of payment
processing capabilities. These service offerings include: one time
and recurring ACH debits and credits, electronic lockbox and
returned check services, Web pay acceptance of credit cards and
checks, telephone pay to Customer Service Representatives for
acceptance of credit cards and checks, Interactive Voice Response
systems which completely automate the payment receiving process,
and data warehousing that enable the storage and retrieval of all
payment history from one location. Payment Data is the owner of the
electronic bill payment portal, http://www.bills.com/ . Bills.com
has the ability to transmit electronic payments to thousands of
national billers. For additional information, visit
http://www.paymentdata.com/ . Contact: Michael Long, Investor
Relations, Payment Data Systems, Inc. 210-249-4040. 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 our and management's intent,
belief and expectations, such as statements concerning our future
and our operating and growth strategy. Investors are cautioned that
all forward- looking statements involve risks and uncertainties
including, without limitation, our ability to raise additional
funding on acceptable terms, whether our operations become
profitable, whether we can adapt our security applications to
changing market conditions, if the trend of increasing numbers of
payments processed electronically continues, whether our current
officers and directors continue providing their services to the
Company and such other factors detailed from time to time in our
filings with the Securities and Exchange Commission. One or more of
these factors have affected, and in the future could affect, our
businesses and financial results in the future 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 us or any
other person that our objectives and plans will be achieved. All
forward-looking statements made in this release are based on
information presently available to our management. We assume no
obligation to update any forward-looking statements, except as
required by law. DATASOURCE: Payment Data Systems, Inc. CONTACT:
Michael Long, Investor Relations of Payment Data Systems, Inc.,
+1-210-249-4040 Web site: http://www.paymentdata.com/
http://www.reloadhere.com/ http://www.bills.com/
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