Payment Data Systems, Inc. (OTCMKTS:PYDS) a leading company in the industry of integrated electronic payments solutions reported the financial numbers for the year ended December 31, 2014. The revenue for FY2014 surged 159% to almost $13 million from approximately $5 million for the year ended December 31, 2013. The surge of $8 million was a result of increased transaction volumes across the ACH and credit card business divisions.
Payment Data Systems reported gross profit for FY2014 surged 329% to $4 million from $974,896 for FY2013. The net income came at $3 million compared to net loss of $789,039 for FY2013. The basic earnings per share surged to 4 cents per share for FY2014 against loss per share of 1 cent for the year ending December 31, 2013. The operating income came at $2.24 million from an operating loss of $755,432 in last year.
The operating income excluding the impact of non-cash expenses linked with stock-based compensation amounting to $291,980 and depreciation costs of $40,953 came at $2.57 million. The SG&A expenses slightly jumped by 14% to $1.60 million from $1.40 million for FY2013. The cash/cash equivalents for FY2014 increased to $54.98 million from $26.57 million in FY2013.. The increase was primarily due to the dramatic rise in processing amount from new and existing customers that prompted higher customer deposits.
The management view
Michael Long, the CEO of Payment Data Systems, Inc. (OTCMKTS:PYDS) stated that the management is thrilled with financial results for FY2014. The high growth in transactions was supported by new as well as existing clients. The requirement for services was high and can surge as the company develop even more competitive solutions. The company set all-time records in every vital financial metric in FY2014 including revenue, operating income, cash generated and net income. The management team accomplished the strong growth with a small increase in SG&A expenses.