SOURCE: Payment Data Systems, Inc.

May 17, 2005 07:00 ET

Payment Data Systems Reports First Quarter Results; Revenue up 340 Percent From Prior Year Quarter

SAN ANTONIO, TX -- (MARKET WIRE) -- May 17, 2005 -- Payment Data Systems, Inc. (OTC BB: PYDS) today announced financial results for the quarter ended March 31, 2005. Revenues increased 340% to $242,962 for the first quarter of 2005 from $55,197 for the first quarter of 2004. Net loss for the quarter ended March 31, 2005 was $455,980, or $0.02 per share, compared to net loss of $400,716, or $0.02 per share, for the comparable quarter of 2004.

Commenting on the increase in revenues, Michael R. Long, Chairman and Chief Executive Officer of Payment Data Systems, said, "We are pleased to report that the first quarter of 2005 was up 142% for transactions and up 96% in dollar volume above the fourth quarter of 2004. As a consequence, we saw revenues for the first quarter of 2005 grow 44% from $168,966 in revenues for the preceding fourth quarter with the growth in card processing leading the increase."

Long added, "Revenue generated by our merchant customers was approximately 80% of our total revenues in the first quarter of 2005, and we expect the trend of increasing card-based revenues to continue."

About Payment Data Systems, Inc.

Payment Data Systems, Inc., is an Integrated Payments Solution Provider delivering comprehensive, cost-effective solutions to billers and retailers for the processing and management of electronic payments via the Internet, point of sale, or payments taken by Customer Service Representatives or an Interactive Voice Response (IVR). Additional products available from PDS include services and products that can be implemented more quickly and less expensively than the alternative of adding multiple payments companies as these solutions offer a full range of payment processing capabilities. These service offerings include: one time and recurring ACH debits and credits, electronic lockbox and returned check services, Web pay acceptance of credit cards and checks, telephone pay to Customer Service Representatives for acceptance of credit cards and checks, Interactive Voice Response systems which completely automate the payment receiving process, and data warehousing that enable the storage and retrieval of all payment history from one location. Payment Data is the owner of the electronic bill payment portal, http://www.bills.com. Bills.com has the ability to transmit electronic payments to thousands of national billers. For additional information, visit www.paymentdata.com.

Website: http://www.paymentdata.com

FORWARD-LOOKING STATEMENTS DISCLAIMER

Except for the historical information contained herein, the matters discussed in this release include certain forward-looking statements, which are intended to be covered by safe harbors. Those statements include, but may not be limited to, all statements regarding our and management's intent, belief and expectations, such as statements concerning our future and our operating and growth strategy. Investors are cautioned that all forward-looking statements involve risks and uncertainties including, without limitation, the factors detailed from time to time in our filings with the Securities and Exchange Commission. One or more of these factors have affected, and in the future could affect, our businesses and financial results in the future and could cause actual results to differ materially from plans and projections. We believe that the assumptions underlying the forward-looking statements included in this release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that our objectives and plans will be achieved. All forward-looking statements made in this release are based on information presently available to our management. We assume no obligation to update any forward-looking statements, except as required by law.

Contact Information

  • Contact:
    Michael Long
    Investor Relations
    Payment Data Systems, Inc.
    210-249-4040