SAN ANTONIO, March 31, 2014 (GLOBE NEWSWIRE) -- Payment Data Systems (OTCBB:PYDS), an integrated electronic payments solutions provider, today announced the financial results for the year ended December 31, 2013. Revenues for the fiscal year ended December 31, 2013 decreased to $5,180,362 from $7,345,974 for the year ended December 31, 2012. The decrease of $2,165,612 was primarily a result of lower transaction volumes across our ACH and prepaid card business segments.
Gross profit for the year ended December 31, 2013 decreased to $974,896 from $3,159,011 for the year ended December 31, 2012.
Cash and cash equivalents for the fiscal year ended December 31, 2013 increased to $26,573,771 from $3,759,791 for the year ended December 31, 2012. The increase was attributed to the dramatic increase in processing from newly acquired customers in the fourth quarter of 2013 that resulted in higher customer deposits. Operating income for the year ended December 31, 2013 decreased to a net loss of $755,432 from an operating gain of $1,390,988 for the year ended December 31, 2012.Excluding the effect of non-cash expenses associated with stock-based compensation of $293,080 and depreciation expenses of $31,654, operating income for the year ended December 31, 2012 was net loss of $430,698. While we generated income in the fourth quarter of 2013, our net loss for the year ended December 31, 2013 was $789,039 as compared to net income of $1,275,218 for the year ended December 31, 2012. Other selling, general and administrative expenses decreased for the year ended December 31, 2013 to $1,405,594 from $1,509,333 for the year ended December 31, 2012. Michael Long, Chief Executive Officer of Payment Data Systems said, "We were certainly not as pleased with the final results in 2013 as we were in 2012, but, in 2013, we saw continued growth in our credit and debit card transaction processing that increased twenty-three percent over 2012. Also, in 2013, we witnessed growth in our credit and debit card dollars processed that increased eighteen percent over 2012, resulting in record volumes for any year in the history of our Company. However, we experienced lower ACH transaction volumes and prepaid card volumes for 2013, which, ultimately, resulted in overall reduced revenue and income for the year."
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