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PYDS Reports Second Quarter 2011 Results

Stocks in this article: PYDS

Payment Data Systems, Inc. (OTCBB: PYDS), an integrated electronic payments solutions provider, today announced financial results for the quarter ended June 30, 2011.

Revenues increased to $768,359 for the second quarter of 2011 from $604,184 for the second quarter of 2010 due to higher transaction growth. The operating loss for the quarter ended June 30, 2011 was $169,084 compared to operating loss of $152,338 for the second quarter of 2010. Excluding the effect of non-cash expenses associated with stock-based compensation of $134,980 and depreciation expenses of $1,072, operating loss for the second quarter of 2011 was only $33,032, the majority of which was one-time consulting fees. Net loss for the quarter ended June 30, 2011 was $238,481 from a net income of $55,174 for the second quarter of 2010 with the majority of the difference being a unrealized loss in marketable securities. Excluding the effect of non-cash expenses associated with stock-based compensation of $134,980 and depreciation expenses of $1,072 and the unrealized loss in marketable securities of $91,738, net loss for the second quarter of 2011 was $10,691.

Commenting on the results for the quarter, Michael R. Long, Chairman and Chief Executive Officer of Payment Data Systems, said, “Second quarter earnings were no surprise as they followed historical trends."

Long continued, “The real excitement for us is the upcoming quarter. Our previously announced guidance of exceeding $1,000,000 in sales and achieving profitability for the quarter remains firmly in place. The second quarter was focused on implementing a number of new merchants. The merchant acquiring segment of PDS continues to grow and we are now processing payments for over 450 churches and church organizations. Our prepaid card operation, FiCentive, is continuing to earn new corporate clients for its printed on-demand corporate card incentive programs with the conversion to our new bank virtually complete, and our ACH business is contributing greatly to our new trends.”

 

PAYMENT DATA SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

       
 
Three Months Ended June 30, Six Months Ended June 30,

2011

2010

2011

2010

 
Revenues

$

768,359

$

604,184

$

1,553,620

$

1,206,672

 
Operating expenses:
Cost of services 598,542 459,213 1,209,502 945,789
Selling, general and administrative:
Stock-based compensation 134,980 133,650 268,630 267,300
Other expenses 202,849 157,867 386,244 326,635
Depreciation 1,072   5,792   2,345   13,631  
Total operating expenses 937,443   756,522   1,866,721   1,553,355  
 
Operating loss (169,084 ) (152,338 ) (313,101 ) (346,683 )
 
Other income (expense):
Unrealized (loss) on marketable securities

(91,738

)

-

(91,738

)

-

Other income (expense) 22,341   100,000   22,341   160,000  
Total other income (expense), net (69,397 ) 100,000   (69,397 ) 160,000  
 
Loss before income taxes (238,481 ) (52,338 ) (382,498 ) (186,683 )
Income taxes -   2,836   -   8,545  
 
Net loss

$

(238,481

)

$

(55,174

)

$

(382,498

)

$

(195,228

)

 
 
Basic and diluted net loss per common share:

$

0.00

$

0.00

$

0.00

$

0.00

Weighted average common shares
outstanding 136,851,933 123,162,063 136,569,700 117,000,514

For further information regarding our financial results for the quarter ended September 30, 2010, please read our 10-Q that was filed on August 15, 2011.

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