SOURCE: Payment Data Systems, Inc.

November 14, 2005 17:00 ET

Payment Data Systems Reports Third Quarter Results; Revenue Up 360 Percent From Prior Year Quarter

SAN ANTONIO, TX, -- (MARKET WIRE) -- November 14, 2005 -- Payment Data Systems, Inc. (OTC BB: PYDS) an integrated electronic payments solutions provider, today announced financial results for the quarter ended September 30, 2005. Revenues increased 360% to $318,206 for the third quarter of 2005 from $69,201 for the third quarter of 2004. Net loss for the quarter ended September 30, 2005 was $672,166, or $0.02 per share, compared to net loss of $389,067, or $0.02 per share, for the third quarter of 2004. Revenues increased 365% to $876,094 for the nine months ended September 30, 2005 from $188,600 for the same period of 2004. Net loss for the nine months ended September 30, 2005 was $1,624,677, or $0.06 per share, compared to net loss of $1,092,732, or $0.05 per share, for the same period of 2004.

Commenting on the results for the third quarter, Michael R. Long, Chairman and Chief Executive Officer of Payment Data Systems, said, "As announced earlier today, the net loss for the current third quarter includes a non-cash charge of $151,309 related to the settlement of the shareholder suit. We are looking forward to the positive impact that resolving this litigation will have on our cash flow and results going forward."

Long added, "For further information regarding the financial results for the third quarter, please read our 10-QSB filed today available at www.sec.gov. The 10-QSB also discusses the event of our signing a letter of intent to sell our bills.com domain name. As a result of this projected sale, we expect to be debt-free and report net income in the fourth quarter of 2005. There are a number of additional very positive events related to this anticipated transaction that we are not covering in this release. However, tomorrow morning we plan to issue a specific release giving more details."

There will be a conference call on Wednesday, November 16, at 10:00 a.m. Central Standard Time. Participants will dial 866-200-5830 or (International) 732-694-1588 and enter the PIN code followed by the # key: 106020#. During this call, we will review our third quarter financial results and answer your questions regarding the bills.com transaction.

There will be a call playback facility provided immediately following the call. The number for that playback is 866-206-0173; playback reference number 161050.

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 payment 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.

These are all managed within a single comprehensive storage and retrieval system thereby providing the customer consolidated tracking and reporting of all payment types regardless of source or channel.

Payment Data is the owner of the electronic bill payment portal, http://www.bills.com. Bills.com has the ability to transmit payments to thousands of national billers.

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
    210-249-4040