JACKSONVILLE, Fla.,
April 18, 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 and an
operational update for the second fiscal quarter and six months
ended February 28, 2011.
For the quarter ended February 28,
2011, revenues were $545,951,
an increase of $456,537 (or 510.6%)
from $89,414 for the second quarter
of fiscal 2010. The net loss for the quarter was $(789,830) or ($0.01) per share, a decrease of $316,171 (or 28.6%) from $(1,106,001) or ($0.02) per share for the same period in the
prior year.
For the six months ended February 28,
2011, revenues were $910,630,
an increase of $743,521 (or 444.9%)
from $167,109 for the six months
ended February 28, 2010. The net loss
for the six months ended February 28,
2011 was $(1,844,049) or
($0.02) per share, a decrease of
$401,612 (or 17.9%) from $(2,245,661) or ($0.05) per share for the same period in the
prior year.
The Company's Chairman, President and CEO, Raymond L. Goldsmith stated the following, "It
is my pleasure to share with you an operational update and to
summarize the progress that I witnessed on my recent visit to our
South African prepaid operations. In today's update, I will detail
FNDS3000's progress over the last several months since I assumed
responsibility as CEO and President. In addition, I will discuss
key business objectives that we are focusing on for the remainder
of 2011.
FNDS3000 RECENT PROGRESS
"Reviewing our structure, both internally and externally, has
been my highest priority since assuming the post of CEO this past
fall. The transformation of our corporate leadership team at the
end of September 2010 has served to
greatly streamline our internal lines of communications,
significantly reduce non-South African corporate overhead expenses,
and empowered our management team in South Africa to mobilize resources more
quickly and to respond to our customer needs more effectively.
Since October, we have eliminated approximately $1 million from previously planned operating
costs outside of South Africa,
whilst deploying those funds to focus on increasing revenue in
South Africa. There is no question
that the Company is now on a more solid foundation and our business
continues to grow each month.
"We are pleased with our financial results and the key drivers
of our business in the early stages of our operations. The main
message that permeates from our South African team is a continuing
upward trend in all aspects of our operations as can be illustrated
by the following two charts.
"Record revenue of approximately $546,000 was generated in the fiscal quarter
ending February 28, 2011, which was a
511% increase over the prior year's second quarter and a 50%
increase over our first fiscal quarter of 2011. The information in
the Revenue chart drives home the early success of the basic
business model of our Company. We started with prepaid payroll
cards in South Africa as we
projected that this would be a great core business to begin with as
we expected it to provide a predictable, recurring revenue stream.
Our overall revenue, utilizing our fiscal second quarter ended
February 28, 2011 as a base, is now
on an annualized revenue run rate of $2.14
million.
(Photo:
http://photos.prnewswire.com/prnh/20110418/FL85007-a )
"The South African Rands Loaded chart gives us a good 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 950% to approximately ZAR 140.3
million (approximately $20.4
million in U.S. dollars) over the same quarter last year and
55% over our first fiscal quarter of 2011.
(Photo:
http://photos.prnewswire.com/prnh/20110418/FL85007-b )
"We have seen strong growth in the number of prepaid cards. As
of February 28, 2011, FNDS3000 had
issued and activated a total of 54,400 cards, of which 25,700 were
revenue producing. We are also pleased to report that we
anticipated that as customer card utilization matures, the margin
trends would increase, and to date, that has been confirmed.
2011 OBJECTIVES
"For the remainder of calendar 2011, we will focus on several
key business objectives to achieve a positive cash flow and further
growth. We are currently engaged in:
- implementing direct local sales initiatives in South Africa to attract new customers for our
prepaid card programs, as we migrate away from our initial
distributor sales model;
- adding another worldwide retail electronic payment network to
our prepaid processing platform and another banking facility;
- enhancing the functionality of our prepaid processing platform
to provide for greater control, flexibility, productivity and
scalability of our South African operations; and
- exploring other emerging prepaid markets.
"We will expand and report on these objectives in our upcoming
news releases and quarterly reports."
SUMMARY
Goldsmith summarized by stating, "Data relating to a growing
number of emerging prepaid markets show demand from the private and
public sectors is indeed accelerating. The progress we continue to
make on all fronts reinforces my belief that FNDS3000 now has
strong underlying value and can be built into a growing, profitable
company. We have built a solid foundation and the entire management
team is very focused, committed and positive about the future, and
we are finally seeing a true picture of where the business is
going.
"There will be a need to secure additional funds to cover
operational expenses as we work towards positive cash flow and we
cannot today provide any guarantee that we will successfully close
such financing or that such financing, if closed, will be on
reasonable terms. However, with $15
million previously raised, we are cautiously optimistic that
we will obtain the necessary funding required to grow the
Company.
"In closing, I want to thank our employees for their dedication
and hard work; our customers and partners for their confidence in
us; and finally, our shareholders for their support as we enter
into what we believe to be an exciting, new era for FNDS3000
Corp."
Detailed information on the financial results for the fiscal
second quarter and the six months ended February 28, 2011 was included in the Company's
quarterly report on Form 10-Q, which was filed with the Securities
and Exchange Commission on April 14,
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 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