JACKSONVILLE, Fla.,
Nov. 30, 2010 /PRNewswire-FirstCall/
-- 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 fiscal year ended
August 31, 2010.
Key Highlights for Fiscal Year 2010 Compared to Fiscal Year
2009
- Revenue climbed 444% from $88,981 to
$484,119.
- Gross profit margin on sales improved, rising from 24% to
39%.
- After factoring non-cash expenses of $1,359,555, the net loss totaled $4,527,840, or $0.10 loss per basic and diluted share.
This compared to a net loss in the previous year of
$5,677,725, or $0.17 loss per basic and diluted share, after
accounting for $2,124,350 in total
non-cash expenses.
As of August 31, 2010, cash and
accounts receivable stood at $399,933; total assets were $1,869,089; total current liabilities were
$490,058; there was no long-term
debt; and stockholders' equity was $1,379,031.
Operational Highlights for Fiscal Year 2010
- In December 2009, the Company
concluded the Market Test Phase and commenced the Production
Rollout of its South African prepaid card programs.
- The number of prepaid cards issued and activated increased from
2,200 Market Test cards as of the end August
2009 to approximately 23,700 as of August 31, 2010; and has subsequently climbed to
approximately 35,000 issued and activated cards as of the end of
November 2010.
- During the fiscal year, Rands loaded onto prepaid cards
increased from 2.27 million per month to 23.01 million per
month.
- Although a majority of the Company's revenue during Fiscal Year
2010 stemmed from cards issued and activated under its prepaid
payroll program, FNDS3000 also benefited from initial traction
achieved through early adoption of its prepaid microfinance card
program now being offered to micro-lending institutions in
South Africa.
Recent Developments
- On October 6, 2010, FNDS3000
announced the implementation of several strategic reorganizational
initiatives specifically aimed at streamlining its senior
management structure, reducing corporate overhead expenses and
strengthening its South African business operations, which
included:
- the reduction of the number of Board members from nine to
five;
- the expansion of Chairman Raymond
Goldsmith's leadership role to include the posts of
President and Chief Executive Officer; and
- freeing up of approximately $1
million in cash and working capital through corporate staff
reductions and related corporate cost-cutting programs.
- Later that same month, the Company 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 $500,000 each, are scheduled to occur on or about
January 31, 2011; April 1, 2011 and July 1,
2011.
Commenting on the results, Goldsmith noted, "While the Company
faced its share of tough times over the past year, we succeeded in
launching the Production Rollout of our prepaid card programs,
secured financing for the Company and made a point of maintaining a
high level of transparency with the investing public. The
recent steps we've taken to strengthen fundamental aspects of our
working capital position and operating platform have allowed us to
define an executable plan in South
Africa with financial goals and operational objectives that
are both realistic and attainable in fiscal 2011. More
specifically, our key goals and objectives include:
- Implementing local marketing initiatives in South Africa to promote major new customer
wins for our prepaid payroll, microfinance and benefits card
programs, and in the process drive notable revenue growth;
- Further enhancing the functionality of our prepaid processing
platform;
- Identifying other emerging prepaid markets in the international
arena to pursue smart expansion opportunities; and
- Attaining positive cash flow in our South African business
operations."
"As we proceed with our plan, FNDS3000 shareholders can expect
that our management team will be dedicated to our growth and the
value-driven results we are working to achieve so that our
performance can be properly judged ... and rewarded," concluded
Goldsmith.
For more detailed information on the fiscal 2010 results, please
refer to the Company's 10-K filed with the U.S. Securities and
Exchange Commission yesterday afternoon. To access the
report, go to www.sec.gov.
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