Payment Data reports profit for fourth quarter

Payment Data Systems Inc. posted positive earnings for the fourth quarter -- thanks to a $911,000 gain off the sale of the company's Bills.com domain name.

San Antonio-based Payment Data (OTCBB: PYDS) reported net income of $428,987, or 1 cent per share, for the fourth quarter ended Dec. 31, 2005. This compares to a net loss of $421,799, or 2 cents per share, for the fourth quarter of 2004.

The company has not released fourth-quarter revenue figures. However, Payment Data reported first quarter revenue of $243,000, second quarter revenue of $315,000 and third quarter revenue of $318,000. Payment Data posted unaudited, full year revenues of $1.18 million.

Payment Data Chairman and CEO Michael Long says the company will not release full, audited financial results until it files its form 10-KSB with the Securities and Exchange Commission either on or before March 31.

For the full year, Payment Data reported a $1.2 million net loss, or 4 cents per share, on revenues of $1.18 million. This compares to a net loss of $1.5 million, or 7 cents per share, on revenues of $357,566 in 2004.

"We are very pleased to see the year finish on a positive note, continuing the steady growth in revenue year over year, and significant improvements in the overall traction of our business," Long says.

Payment Data Systems is an integrated payment-services provider to merchants and billers. It owns the bill-payment portal Billx.com, which allows customers to pay their bills online, and owns the rights to market the Carmen Electra gift, prepaid debit and stored-value cards.