JACKSONVILLE, Fla., Jan. 20 /PRNewswire-FirstCall/ -- FNDS3000 Corp (OTC Bulletin Board: FDTC) (Frankfurt: "FT4," A0MWLG), a financial transaction processing services company, currently introducing prepaid card programs to the South African market, today announced financial results for the first quarter of fiscal year 2010.
For the quarter ended November 30, 2009, revenues were $77,695, an increase of $73,320 (or 1,676%) from $4,375 for the first quarter of fiscal 2009, reflecting the initial revenue stream from our prepaid card programs. The net loss for the quarter was $(1,139,660) or ($0.03) per share, an increase of $87,015 (or 8%) from $(1,052,645) or ($0.04) per share for the same period in the prior year. More detailed information on the financial results of the Company is available within FNDS3000 Corp's Form 10-Q that was filed with the Securities and Exchange Commission on January 14, 2010.
John Hancock, Chief Executive Officer, said, "This first quarter of Fiscal 2010 began as we entered the critical Market Volume Test which, we believe, over the quarter confirmed our operations in terms of handling commercial scale numbers of customers and cards. In early November 2009, we exceeded the level of 50,000 cards distributed to corporate clients. As a result, the quarter saw the first meaningful revenues, albeit at this early stage, still small. As we have reported, the comprehensive testing required more time than we anticipated. However, we used these delays to further test, develop and enhance our systems, processes, infrastructure and operational team. We were also able to validate that card revenues and margins were meeting our expectations. By the end of this first quarter, we had 70,000 cards distributed to corporate clients, 37 contracted customers with 11 more customers under active negotiation.
"I was and am pleased with this progress and in early December felt able to authorize the move to full production roll out. The Christmas holiday season, which in South Africa coincides with high summer and school and family vacations, inevitably slowed the pace of client activity, but nevertheless, our important card fee revenues in December were some 75% above those of November.
"The delays necessitated more financial support. A financing agreement valued at just over $2 million, negotiated with existing investors, was closed at the end of the quarter, and we now recognize a need to secure additional funds to cover operating expenditures as we work towards positive cash flow. We cannot today provide any guarantee that we will successfully close such financing or that such financing, if closed, will be on reasonable terms."
About FNDS3000 Corp: FNDS3000 Corp (OTC Bulletin Board: FDTC) (Frankfurt: "FT4," A0MWLG) is a financial transaction processing service company. Since its inception, its focus has been on the development and implementation of a variety of prepaid card programs outside the United States, including services to individuals who lack access to conventional banking services. FNDS3000 meets a vital need of companies that have financial dealings with such individuals by offering prepaid cards that can be tailored to the differing requirements of each customer. FNDS3000 intends to provide these services in both developed and underdeveloped nations through a proven U.S. processing platform that has been designed for international and cross border capability. Many of these FNDS3000 products carry worldwide brand marks and can be used anywhere that accepts these brands. Programs that can be supported include payroll, insurance, medical aid, gift cards, prepaid cellular charges and small-scale international transfers of funds.
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