JACKSONVILLE, Fla.,
July 21, 2011 /PRNewswire/ --
FNDS3000 Corp (OTCQB: FDTC), an international prepaid processing
company currently introducing electronic payment solutions to the
South African market, today announced its financial results for the
third fiscal quarter and nine months ended May 31, 2011.
THIRD QUARTER HIGHLIGHTS:
- We project that over $107 million
will be loaded onto our prepaid cards over the next 12 months based
on the third quarter results.
- We have upped our projected annualized revenue run-rate to
$3.21 million based on our
June 2011 revenue.
- Record revenues for the third quarter of 2011 were $695,000, up from $110,000 in the prior year's third quarter.
- Net loss for the quarter was $572,000 or $0.01
per share, compared to a net loss of $1,050,000, or $0.02 per share, in the prior year's third
quarter.
For the quarter ended May 31,
2011, revenues were $695,300,
an increase of $585,026 (or 530.5%)
from $110,274 for the third quarter
of fiscal 2010. The net loss for the quarter was $(572,214) or ($0.01) per share, a decrease of $477,918 (or 45.5%) from $(1,050,132) or ($0.02) per share for the same period in the
prior year.
For the nine months ended May 31,
2011, revenues were $1,605,930, an increase of $1,328,547 (or 479.0%) from $277,383 for the nine months ended May 31, 2010. The net loss for the nine months
ended May 31, 2011 was $(2,416,262) or ($0.03) per share, a decrease of $879,531 (or 26.7%) from $(3,295,793) or ($0.07) per share for the same period in the
prior year.
The Company's Chairman, President and CEO, Raymond L. Goldsmith stated, "Favorable business
momentum continued in the fiscal third quarter as we pursue
profitability and a cash flow positive position. We have generated
double-digit revenue growth for the seventh consecutive quarter and
our bottom line has improved over the past two quarters by
approximately $482,000 as we continue
to implement direct local sales initiatives in South Africa as part of our plan to migrate
away from our initial distributor sales model. We also continue to
benefit from the transformation of our corporate leadership team at
the end of September 2010 that has
served to streamline our internal lines of communication and will
have reduced non-South African corporate overhead expenses by
approximately $1,000,000 by our
year-end August 31. The continuing
upward trend of our business can be illustrated by the two charts
below.
(Photo: http://photos.prnewswire.com/prnh/20110721/FL38752-a
)
"The South African rands loaded chart gives an indication of
future revenue based on the premise that the more rands loaded onto
the cards, the more revenue that should be generated. The volume of
South African rands (ZAR) loaded onto our prepaid cards jumped 712%
to approximately ZAR 184.6 million
(approximately $26.8 million in U.S.
dollars) over the same quarter last year and 32% over our second
fiscal quarter of 2011.
(Photo: http://photos.prnewswire.com/prnh/20110721/FL38752-b
)
"We are pleased to report that we continue to maintain no debt
on our balance sheet. In the third quarter, the Company raised an
additional $1 million and our need to
secure additional funds to cover operational expenses continues to
decrease each quarter as we work towards positive cash flow. We
cannot provide a guarantee that we will successfully close any
required financing or that such financing, if closed, will be on
reasonable terms. However, with approximately $16 million previously raised, we are cautiously
optimistic that we will obtain the necessary funding required to
grow the Company."
Goldsmith concluded, "Looking ahead, based on current business
trends, we anticipate that both revenues generated and rands loaded
onto our prepaid card platform will continue to increase in our
fourth fiscal quarter. We will focus on expanding gross margins,
improving working capital usage and operational efficiencies,
meeting increased demand and enhancing our prepaid card processing
platform."
Detailed information on the financial results for the fiscal
third quarter and the nine months ended May
31, 2011 is included in the Company's quarterly report on
Form 10-Q, which was filed with the Securities and Exchange
Commission on July 15, 2011.
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 player in the 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.
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