HDX Announces Record Sales and EBITDA profit for Second Quarter 2009

TORONTO, Aug. 13, 2009 (Canada NewsWire via COMTEX) -- HDX | Quote | Chart | News | PowerRating -- Hosted Data Transaction Solutions Inc. ("HDX") announced today its financial results for the three-month period ending June 30th, 2009. HDX is listed on the TSX under the symbol "HDX".

Paul Howell, President and CEO states, "The HDX team has achieved excellent financial results for the second quarter of 2009. Our consistent disciplined approach towards developing new products and business opportunities combined with identifying all possible cost reductions has resulted in record HDX revenue of $2,691,473 and EBITDA profit of $251,449 for the quarter."

Mr. Howell noted further, "I am especially pleased with these results considering the difficult current economic climate for the tourism and hospitality industry. This strong financial report demonstrates to our shareholders that the elimination of expenses HDX incurred in previous quarters has greatly improved our cost structure moving forward. This allows us to focus on our competitive strengths and take advantage of growth opportunities."

In the second quarter of 2009 HDX installed new point of sale solutions at 37 quick service restaurants and deployed 212 integrated payment solutions at client locations. HDX also distributed 431 new electronic cash registers, 21 digital surveillance solutions, and deployed new point of sale solutions at 11 fine dining restaurants.

HDX continues to pursue selective strategic acquisitions to further its growth. None are specifically named at this time but the Company is focused on POS sales and services companies and transaction based payment solution companies.

    <<
    Highlights and Summary for the Quarter

    -   Revenue was $2,691,473 for the three months ended June 30, 2009,
        compared to $2,009,890 for the three months ended June 30, 2008;

    -   Deferred revenue, which represents annual recurring revenues that
        have not yet been recognized as revenue, was $1,060,638 compared to
        $838,137 for the three months ended June 30, 2008;

    -   Gross margin was $1,633,494 for the three months ended June 30, 2009,
        compared to $1,261,173 for the three months ended June 30, 2008;

    -   EBITDA income (loss) (earnings before interest taxes depreciation and
        amortization) for the three months ended June 30, 2009, was $251,449
        compared to a loss of $176,564 for the three months ended June 30,
        2008;

    -   HDX's cash, cash equivalents and short term investments totaled
        $1,101,934 as at June 30, 2009; and

    -   Net income which includes non-cash expenses such as amortization and
        stock-based compensation charges of $65,474 was $166,600 for the
        three months ended June 30, 2009, compared to a loss of $327,209 for
        the three months ended June 30, 2008.
    >>

Additional information on HDX financial results for second quarter 2009 will be available in the financial reports filed by the Company with Sedar at www.sedar.com and posted to the Investor Relations section of the Company's website at www.hdxsolutions.com.

About the Company

Hosted Data Transaction Solutions Inc. is in the business of managing merchant transactions with consumers and facilitating payment. HDX develops and deploys touch screen POS system software and associated enterprise management tools and has developed and deployed numerous POS applications. HDX also provides system hardware integration services, merchant staff training, system installation services, and post sale software and hardware support services.

HDX leading edge technology also includes customer self serve kiosks and "line buster" mobile point of sale terminals. These products have been designed to dramatically enhance customer throughput and drastically reduce customer queues. These technologies are especially effective in high foot traffic environments that have limited cash register counter space, limited retail square footage, and the absence of a drive through.

The Company offers a complete suite of products and solutions for merchants. HDX develops, sells, deploys, and supports touch screen POS systems for quick service restaurants, integrated RFID gift card payment systems, self serve customer kiosks, mobile wireless POS terminals, fine dining / table service POS systems, integrated digital video surveillance and recording systems, electronic cash registers, and web enabled business intelligence applications.

Forward-Looking Statements

This discussion includes certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with our business and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend", and similar expressions to the extent they relate to the Company or its management. The forward-looking statements are not historical facts, but reflect HDX's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matters discussed under "Risks and Uncertainties" in the Annual Information Form filed on March 30, 2009 with the regulatory authorities. HDX assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements unless required by security regulation.

SOURCE: Hosted Data Transaction Solutions Inc.

Paul Howell, President/CEO, Hosted Data Transaction Solutions Inc. (HDX), Tel: (416)
703-6462, extension 2263, Email: paul.howell@hdxsolutions.com

More News:   Market Updates | Stock Alerts | All Trading News | Stock Index