Payment Data Systems (OTCBB:PYDS), an integrated electronic payments solutions provider, today announced the financial results for year ended December 31, 2010.
Revenues for the year ended December 31, 2010 decreased 19% to $2,618,864 from $3,218,674 2010. The decrease of $599,810 was primarily due to the previously announced loss of a customer in 2009. That customer accounted for $884,497 in revenues in 2009 but did not generate significant revenues in 2010. Operating loss improved by 35% to $609,731 for 2010 from $941,670 in 2009. Net loss for the year ended December 31, 2010 decreased to $464,168 from $803,526 in 2009, but the adjusted net income for 2010 was $93,946 after adding back noncash stock-based compensation expenses of $534,600 and depreciation of $23,514. Other selling, general and administrative expenses decreased 44% to $650,879 for 2010, from $1,157,998 for 2009.
Highlights for the year ended December 31, 2010:
- Total Current Assets increased 69% from $674,411 in 2009 to $1,138,786 in 2010.
- Cash and Cash Equivalents increased 73% from $565,597 to $978,699 in 2010.
- We added 117 businesses to our list of companies that utilize our payment processing services.
- We experienced a 344% growth in the number of consumers using our bill payment offerings due to the addition of more card issuers offering the service to their cardholders.
Michael Long, Chief Executive Officer of Payment Data Systems, said, "There were significant positive aspects to the close of 2010. We remain debt free and for all of 2010 we were sustained by our own cash flow. In the fourth quarter, we processed more dollars than any other time in 2010. It appears that we have carried that momentum into the first quarter of 2011 and we will have processed more transactions and more dollars than we did in Q4. We believe, based on the 2010 results and the outlook for the first quarter of 2011, that the overall outcome for 2011 will represent the best year ever for Payment Data Systems.”