This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Payment Data Systems Closes 2009 With Positive Changes

Payment Data Systems (OTCBB:PYDS), an integrated electronic payments solutions provider, today announced the financial results for year ended December 31, 2009.

Revenues for the year ended December 31, 2009 increased 7% to $3,218,674 from $3,001,487 in 2008. The increase of $217,187 was primarily due to increased card-based processing revenue from increased transaction volume. Operating loss improved by 46% to $941,670 for 2009 from $1,690,300 in 2008. Net loss for the year ended December 31, 2009 decreased to $803,526 from $944,617 in 2008, but the net loss for 2009 was $267,326 after adding back noncash stock-based compensation expenses of $536,200.

Highlights for the year ended December 31, 2009:

  • We processed 29% more credit card transactions in 2009 as compared to 2008.
  • We processed 11% more credit card dollar volume in 2009 as compared to 2008.
  • Total assets increased 91% from $607,991 at December 31, 2008 to $1,162,869 at December 31, 2009.
  • Cash and cash equivalents increased 447% from $103,428 at December 31, 2008 to $565,597 at December 31, 2009.
  • We reported net income of $22,565 for Q3 of 2009 and a net loss of $53,712 for Q4 of 2009.

Michael Long, Chief Executive Officer of Payment Data Systems said, “Based on trends we are seeing for 2010, we anticipate that our business is approaching a cash flow positive situation. We plan to accomplish this goal through strict controls on expenses and growth of higher margin sales.”

Long continued, “As we move forward into 2010, we will continue 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. The greatest potential for achievement of positive cash flow and profitability are supported by our announced Redpack Mi Promesa card program which should be in general market availability around the first of June of this year, and implementation of our new Corporate Incentive Card programs which we are implementing now and will continue to do so for the next several quarters. We have several unannounced and contracted customers for merchant processing, prepaid card programs, and bill payment services that should 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. We will continue to look at strategic opportunities to leverage our merchant processing, card programs, and bill payment into new market-leading technologies that we believe will be very attractive to today’s highly underserved unbanked and underbanked communities. Lastly, we encourage each of you to review our 10-K filed today in order to understand the challenges we face as we continue to strive towards profitability. We remain excited about our future.”

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs