DataWave Systems Inc., a provider of prepaid and stored value delivery systems, reported financial results for the fourth quarter and year ended March 31, 2006.
Total revenue for the fourth quarter of fiscal 2006 was $8.1 million compared to $7.7 million for the same period in fiscal 2005. Revenue for the fourth quarter of fiscal 2005 included higher than normal promotional activity, which accounted for $1.0 million, during a seasonally weak period.
Operating income for the fourth quarter of fiscal 2006 was $506,000 versus an operating loss of $7,000 for the same period last year. Net income for the fourth quarter of fiscal 2006 was $313,000, or $0.01 per diluted share, versus net income of $41,000, or $0.00 per diluted share, for the same period last year.
Josh Emanuel, chairman and chief executive officer, stated, "Fiscal 2006 marked another year of strong organic growth -- with operating income increasing three-fold over the prior year. We added over 30 new retail partners and introduced more than 100 new pre-paid products through our existing distribution channels. We have also built a very strong financial foundation with no long-term debt and $7 million of cash and cash equivalents at the end of fiscal 2006." Emanuel continued, "During the fourth quarter, our seasonally weakest period, we generated over $1 million of cash flow from operations -- reinforcing the solid foundation of our business. We are especially pleased with 7-Eleven's recent decision to renew its relationship with DataWave through a new multi-year agreement, on the strength of our cutting-edge technology, our superior customer service, and our attractive portfolio of pre-paid products."
As of Dec. 31, 2005, the company had more than 4,900 terminals installed, and more than 1,100 host-to-host or distributor locations. Daily transactions processed for the quarter averaged more than 36,400 compared with 30,500 a year ago.