FNDS3000 Corp Announces Results for Third Fiscal Quarter 2010

JACKSONVILLE, Fla., July 15 /PRNewswire-FirstCall/ -- FNDS3000 Corp (OTC Bulletin Board: FDTC) (Frankfurt: "FT4," A0MWLG), an international prepaid processing company currently introducing electronic payment solutions to the South African market, today announced its financial and operational results for the third fiscal quarter, ended May 31, 2010.  

Key Highlights for Nine Months Ended May 31, 2010 Compared with Nine Months Ended May 31, 2009:

• Revenue totaled $277,383, up 436% from $51,791.
  • The number of prepaid cards issued and also activated rose to approximately 13,700 from zero. The increase is attributable to the fact that the Company did not commence production roll-out of its prepaid payroll card programs until January 2010, and has since been steadily growing its base of corporate customers and activated cardholders.  As of June 30, 2010, the total number of prepaid cards issued and also activated had increased to approximately 18,000 with more than 60 million rand (US$8 million) in total value loaded to the cards.
  • Transaction fees accounted for $124,000 of total revenue, compared to $7,000 in the prior year.
  • Sales of plastic cards and security tokens increased 85% to $74,000 from $40,000.
  • Processing fee-related revenues climbed 1300% to $70,000 from $5,000.
• After factoring non-cash expenses of $892,619 related largely to amortization and depreciation, accounting for stock-based compensation and non-cash interest charges associated with the Company's convertible notes, the net loss totaled $3,295,793, or $0.07 loss per basic and diluted share.  This compared to a net loss in the previous year of $4,273,802, or $0.14 loss per basic and diluted share, after accounting for $1,757,649 in total non-cash expenses.

Key Highlights for Three Months Ended May 31, 2010 Compared with Three Months Ended May 31, 2009:

• Revenues climbed 156% to $110,274 from $43,065.  
• Total operating expenses declined 7% to $873,021 from $935,572 due largely to wage reductions involving all U.S.-based employees and a notable decrease in travel expenses caused by less required hands-on support by senior management of the Company's South Africa operations.  The decrease in operating expenses was offset by higher non-cash expenses and an increase in professional and IT consulting fees.  
• The net loss decreased 14% to $1,050,132, or $0.02 loss per basic and diluted share, compared to a net loss of $1,220,352, or $0.04 loss per basic and diluted share.

When comparing the current fiscal year's third quarter performance to the immediately preceding second fiscal quarter, revenues increased 23% to $110,274 from $89,414; total operating expenses dropped 5% to $873,021 from $916,556; and the net loss declined 5% to $1,050,132 from $1,106,001.  

Commenting on the results, John Hancock, CEO of FNDS3000, noted, "The past several months have proven to be very exciting and productive for FNDS3000.  Although we are still in the early stages of our production roll-out phase, key metrics and emerging trends have indicated that we are indeed achieving growing market acceptance of our branded prepaid processing programs currently being offered to mid- to large-sized employers in South Africa."

"By way of example," he continued, "as of June 30, 2010, we had successfully launched prepaid payroll card programs for 45 corporate clients – up from 39 at the end of our second fiscal quarter, ended February 28, 2010.  Moreover, the number of cards activated by our clients' employees nearly doubled in the same timeframe, rising from approximately 10,000 to over 18,000; and cash loads on our system have increased to over 60 million rand (over US$8 million at current exchange rates) from approximately 25 million rand (US$3 million)."

Concluding, Hancock said, "Through the strengthening of our balance sheet, made possible by the recently announced cash infusion of $1 million and the conversion of $1.5 million in debt to equity, FNDS3000 is well positioned to perpetuate and accelerate our growth as we advance our roll-out strategies and gain even greater traction in the fast developing South African prepaid market."  

For more detailed information on FNDS3000's financial results, please refer to the Form 10-Q filed with the U.S. Securities & Exchange Commission earlier today.

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