Re: UDTA
10k looks very ugly to me.
Ultradata Systems Reports Loss For Year Ended December 31, 2005
Friday April 7, 4:06 pm ET
ST. LOUIS--(BUSINESS WIRE)--April 7, 2006--Ultradata Systems, Incorporated (OTCBB:UDTA - News) today announced audited financial results for the year ended Dec. 31, 2005. The Company has filed the results on its Form 10-KSB with the Securities and Exchange Commission.
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Net sales in 2005 decreased 80 percent to $781,220 from $3.97 million in 2004. Ultradata reported a net loss in 2005 of $5,871,819, compared with net income of $317,822 in 2004. The 2005 loss included $4,824,878 of non-cash loss due to the Company's expensing of the fair value of a warrant issued in 2005. The Company's operating loss for 2005 was $1,046,216, compared to operating income of $322,595 in 2004. The Company's gross profit was 46% of sales in 2005 compared to 49% of sales in 2004.
The Company said it has developed two new products in 2005 that are expected to be available in the second quarter. These are a low-cost voice-activated hands-free digital recorder for use in automobiles and a cellular road information product which provides road service information, including real-time gas pricing, without the need for any other hardware except a cell phone.
The Company said it has very little cash and negative working capital, and its sales volume is insufficient to cover its expenses. Therefore, unless the Company is able to significantly increase its sales or obtain additional capital, it is unlikely that it will be able to sustain its current level of operations for the remainder of the year.
Ultradata Systems, Incorporated is based in St. Louis, Missouri, where the Company develops and markets hand-held travel information computers and information systems used for locating destinations and trip planning. The Company's lead product, the handheld electronic travel information guide, has sold more than three million units through chain drug stores, mass and consumer electronic retail chains, home centers, the automotive aftermarket, cable TV direct marketers, premium incentive catalogs, and other channels. These products use the Company's patented data-compression technology and proprietary database to provide directions to thousands of destinations and services along highways and in major metropolitan areas.
This press release contains forward-looking statements within the meaning of applicable federal securities laws. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or other changes. Readers are cautioned not to place undue reliance on these forward-looking statements. Risk factors that may cause future results to differ from those implied in these forward-looking statements include, but are not limited to, the fact that our limited financial resources may be insufficient to permit us to develop products and introduce them to the market, the fact that we rely on a small number of customers so that the loss of a significant customer could imperil the marketing of an entire product line, and the difficulty of attracting mass-market retailers to a seasonal product like the Talking Road Whiz(TM). Additional information relating to historical financial and operational performance, the company's strategies, competitive risks, and market conditions are available in Ultradata Systems' reports on Form 10-KSB and 10-QSB on file with the Securities and Exchange Commission.
Ultradata Systems, Incorporated
Statement of Operations
Twelve Months Ended
December 31,
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2005 2004
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Net sales $ 781,220 $3,970,434
Gross profit 358,859 1,943,678
Operating (loss) income (1,046,216) 322,595
Warrant fair-value expense (4,824,878) -
Other income (expense) (725) (4,773)
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Net (loss) income $(5,871,819) $ 317,822
(Loss) income per share (basic and diluted) $ (0.86) $ 0.05
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Weighted average shares
outstanding (basic and diluted) 6,811,257 6,225,304
Ultradata Systems, Incorporated
Balance Sheet
December 31, 2005
Assets
Cash $ 133,524
Accounts receivable, net 96,910
Inventories, net 86,314
Prepaid expenses 39,144
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Total current assets 355,892
Property Plant and Equipment (net) 33,251
Other assets 5,444
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Total assets $ 394,587
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Liabilities and Shareholders' Deficiency
Accounts Payable 200,172
Total accrued expenses and other 177,687
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Total current liabilities $ 377,859
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Notes payable - long term 119,993
Derivative and warrant liability 4,816,193
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Total liabilities 5,314,045
Common stock 83,413
Additional paid-in capital 9,528,366
Accumulated deficit (14,531,237)
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Total shareholders' deficiency (4,919,458)
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Total liabilities and shareholders' deficiency $ 394,587
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Contact:
Ultradata Systems, Incorporated
Ernest Clarke, 314-997-2250
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