Payment Data Systems, Inc. (NASDAQ OTCBB: PYDS), an integrated electronic payments solutions provider, today announced financial results for the quarter ended March 31, 2010.
Revenues decreased from $818,816 for the first quarter of 2009 to $602,488 for the first 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 March 31, 2010 improved to $194,346, from a loss of $433,487 for the first quarter of 2009. Net loss for the quarter ended March 31, 2010 improved to $140,055 from a net loss of $436,487 for the first quarter of 2009.
Excluding the effect of non-cash expenses associated with stock-based compensation of $133,650, the net loss for the first quarter of 2010 was only $6,405.
Cash and cash equivalents increased 20% to $485,178 at March 31, 2010 from $405,296 at March 31, 2009.
In the first quarter of 2010, the Company implemented a plan to significantly reduce its Selling, General and Administrative expenses. This resulted in the Company’s Selling, General and Administrative expenses, other than stock-based compensation, decreasing to $168,768 in the first quarter of 2010 from $414,179 for the same period of 2009. Management expects the savings to be larger for the second quarter of 2010 because the changes in expense structure will occur over a full quarter.
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 improvement in the first quarter results from the prior year period. Also, the positive aspects of the previous quarter continue to move into 2010. The cost savings measures we implemented in the first quarter combined with the forecasted sales of our prepaid card issuing and payment acquiring businesses should yield a year of growth in many positive metrics.”