PYDS Reports Second Quarter 2010 Results
Payment Data Systems, Inc. (OTCBB: PYDS) an integrated electronic payments solutions provider, today announced financial results for the quarter ended June 30, 2010.
Revenues decreased from $834,993 for the second quarter of 2009 to $601,184 for the second 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 June 30, 2010 improved to $152,388, from an operating loss of $332,892 for the second quarter of 2009. Excluding the effect of non-cash expenses associated with stock-based compensation of $133,650 and depreciation expenses of $5,792, the operating loss for the second quarter of 2010 was only $12,896. Net loss for the quarter ended June 30, 2010 improved to $55,174 from a net loss of $335,892 for the second quarter of 2009. Excluding the effect of non-cash expenses associated with stock-based compensation of $133,650 and depreciation expenses of $5,792, net income for the second quarter of 2010 was $84,268.
In the first quarter of 2010, we implemented a plan to cut over half of our selling, general and administrative expenses, not including our non-cash expenses associated with stock-based compensation. The second quarter was the first full quarter under the new expense structure. This resulted in our selling, general and administrative expenses, other than stock-based compensation, decreasing from $345,676 for the second quarter of 2009 to $157,867 in the second quarter of 2010, which was also a 6% improvement from the first quarter of 2010.
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 sequential improvement in the second quarter results, especially that our operating losses have declined each month since February 2010 and the operating loss for the month of June 2010 was less than $2,000 after adding back non-cash stock-based compensation expenses and depreciation. Consequently, I am also pleased to see that our operations are poised to enter a cash flow generation stage. With the continued improvement in our monthly operating losses, and with the new revenue sources coming into play in the third quarter, we expect to generate positive cash flow in the third quarter. While I am pleased with the growth of our existing revenue sources, I am excited to see the launch of the RedPack Mi Promesa Card and the Corporate Incentive card programs. We expect to add at least one new corporate customer for the incentive program in each week of the third quarter. Our ability to print cards on demand is turning into a competitive advantage for us. ”
|PAYMENT DATA SYSTEMS, INC.|
|CONSOLIDATED STATEMENTS OF OPERATIONS|
|Three Months Ended June 30,||Six Months Ended June 30,|
|Cost of services||459,213||679,076||945,789||1,373,661|
|Selling, general and administrative:|
|Non Cash Stock-based compensation||133,650||133,650||267,300||267,300|
|Total operating expenses||756,522||1,167,885||1,553,355||2,420,188|
|Other income (expense):|
|Other income (expense)||100,000||-||160,000||-|
|Total other income (expense), net||100,000||-||160,000||-|
|Loss before income taxes||(52,338||)||(332,892||)||(186,683||)||(766,379||)|
|Basic and diluted net loss per common|
|Weighted average common shares|
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