JACKSONVILLE, Fla.,
Jan. 18, 2011 /PRNewswire/ --
FNDS3000 Corp (OTC Bulletin Board: FDTC), an international prepaid
processing company currently introducing electronic payment
solutions to the South African market, today announced its
financial and operational results for the first quarter of fiscal
2011, ended November 30, 2010.
Key Financial Highlights for Three Months Ended November 30, 2010:
- Revenue totaled $365,000, up from
$78,000 reported for the three months
ended November 30, 2009.
- The number of prepaid cards issued and activated has increased
to approximately 35,600.
- On a quarter-over-quarter basis, the number of prepaid cards
issued and activated during the first quarter of fiscal 2011 rose
52% when compared to 23,400 cards issued and activated as of
August 31, 2010.
- During the three months ended November
30, 2010, more than 90 million
Rand (approximately $13
million at current Rand to US Dollar exchange rates) was
loaded to the cards.
- After factoring interest income and expense and non-cash
charges related to foreign currency re-measurements recorded in the
comparable first quarter reporting periods, net loss totaled
$1,054,000, or $0.01 loss per
basic and diluted share, representing an 7.5% decrease from
$1,140,000, or $0.03 loss per basic and diluted share.
As of November 30, 2010, cash and
accounts receivable stood at approximately $510,000; there was no long term debt; and total
stockholders' equity was $1.32
million.
Operational Highlights for the First Quarter of Fiscal
2011:
- During the three months ended November
30, 2010, FNDS3000 announced the implementation of several
strategic reorganizational initiatives specifically aimed at
streamlining its senior management structure, reducing corporate
overhead costs and strengthening its South African business
operations.
- The Company also announced the signing of a $2.5 million, non-brokered equity financing
agreement that will be closed in four tranches over a nine-month
period. On October 19, 2010,
FNDS3000 closed on the first of the four tranches, receiving net
proceeds of $1,000,000. The
follow-on financings, equal to $1,500,000, are scheduled to conclude by
July 1, 2011.
Commenting on the results, Raymond
Goldsmith, Chairman and CEO of FNDS3000, noted, "We are very
pleased that we have continued to experience measured
quarter-over-quarter growth in revenues, which is a direct
reflection of the solid progress we're making in getting prepaid
cards issued to and activated by our new cardholders in
South Africa. For the remainder of
Fiscal 2011, we expect to strengthen our prepaid processing
platform and expand our prepaid product and service offerings."
About FNDS3000 Corp
Headquartered in the U.S. with operations in South Africa, FNDS3000 Corp is engaged in
executing a series of international growth initiatives designed to
position the Company as a major player in the world's fastest
growing payment card segment: prepaid cards. Given that 40%
of the adult population in South
Africa is currently unbanked or underbanked, FNDS3000's
initial focus has concentrated on offering tailored prepaid card
programs and services to business customers in this developing
prepaid market, including network branded and closed loop programs
that support employee payroll, insurance, medical aid, gift cards,
prepaid cellular charges and small-scale international transfer of
funds. The Company provides these programs and services through a
proven, proprietary U.S. processing platform that has been designed
for international and cross border capability. For more
information, please visit www.FNDS3000.com, or follow us on Twitter
@_FNDS3000.
Forward Looking Statements
Matters discussed in this press release contain forward
looking statements. Investors are cautioned that such forward
looking statements involve risk and uncertainties, which could
significantly impact the actual results, performance, or
achievements of the Company. Such risks and uncertainties
include, but are not limited to, the potential loss of our
relationships with each of the parties that sponsor our cards and
banks that manufacture, issue, and own the cards; the loss of our
service providers; security breaches of our electronic information;
the inability to raise sufficient capital to fund its operations;
and other risks as may be detailed from time to time in the
Company's periodic reports filed with the Securities and Exchange
Commission. The Company assumes no obligation to
publicly update or revise its forward looking statements even if
experience or future events make it clear that any of the
projected results expressed or implied herein will not be
realized.
SOURCE FNDS3000 Corp