Execution of the Core Aspects of FreeStar's Revenue Model Leads to Increasing Growth Trend
DUBLIN, Ireland, May 21, 2007 (PRIME NEWSWIRE) -- FreeStar Technology Corp. (OTCBB:FSRT) an international card payments processor and technology company, today announced that revenues increased by 128% for the quarter ending March 31, 2007 compared to the same time last year. The Company had revenue of $1,125,634 for the three months ended March 31, 2007 compared to $494,296 for the three months ended March 31, 2006, an increase of $631,338 or approximately 128%.
A combination of increases in transaction processing and hardware sales, together with consulting revenue derived from the Company's 50% ownership of Project Life Cycle Partners Limited, were factors behind the increased revenue growth.
The company's revenue for the 9-month period ending March 31st 2007 showed a 43% increase over the same period ending March 31st 2006. The Company had revenue of $2,399,396 for the nine months ended March 31, 2007 compared to $1,674,990 for the nine months ended March 31, 2006, an increase of $724,406. The revenue for the 9-month period ended March 31st 2007 exceeds the $2,097,749 which was recorded for the entire 2006 fiscal year.
FreeStar President and CEO Paul Egan made the following comments on the quarter. "The Company recorded a net loss for the three months ending March 31, 2007 of $2,619,044, an increase of $402,348 or approximately 18% compared to a net loss of $2,216,696 for the three months ending March 31, 2006." Commenting on the numbers Mr. Egan added, "The Company has developed and deployed applications on Hypercom and Thyron terminals for specific clients in this quarter and are releasing the terminals into the Finnish market. We have hired industry experts to develop new markets in Sweden and the Dominican Republic, and have expanded our roll out of product with global refunds to three new countries including Iceland, Denmark, and Norway. We have also increased volume of terminal sales and transactions from the Spanish market. FreeStar has also completed two important certifications on our processing platform for China Union Pay (CUP) and Monex Financial. We expect revenue to flow from these projects in the coming quarters. In the Dominican Republic, we are currently certifying Hypercom and Thyron Terminals for the two card organizations, which are Visa Net and Card Net, and we expect to be a part of the upgrade to the latest industry standards. The payment industry expects credit card processors and acquirers to comply with EMV and PCI standards by January 2008. FreeStar has invested heavily to ensure a leading position which is evident from our present contracts with blue chip clients in the Finnish Market and internationally. This has also allowed us to outsource our processing capacity to banks and merchants across the European community and around the world."
Egan further commented, "FreeStar's significant increase in revenue for the third quarter is a direct result of the increased pace at which the company has been able to acquire customers and expand our global presence. We expect and believe that this trend will continue throughout the remainder of 2007. The company will continue to strive to achieve our strategic goals by delivering new innovative world class products and services for our growing customer base."
Commenting on the results of the quarter, FreeStar's Chief Financial Officer Ciaran Egan said, "As a result of the significant and strategic investments we have made over the past several years, we continue to believe strongly in the long-term potential of the company's business plan and revenue model. The Company has begun executing an aggressive strategy designed to assure that we will increase the market position we have built. Our commitment to invest in our technical infrastructure has enabled us to further extend our reach within the global processing community. It's a strategic and consistent trend we intend on continuing."
About FreeStar Technology Corporation
FreeStar Technology Corp. provides mission-critical solutions to the financial industry worldwide. Working with merchants and acquirers in more than twenty countries, its product suite has empowered partners to focus on their core competencies, while its innovative driven approach has enabled them to benefit from first to market advantage and realize their true potential. FreeStar Technology has adopted a partnership strategy for growth. Its partners are market leaders in their respective industries. These include IKEA, Finnair and Stockmann. Its subsidiaries, Rahaxi Processing Oy, Finland, FreeStar Technologies Ireland, Ltd., and FreeStar Dominicana S.A. Dominican Republic, continue to develop and implement first class products and solutions that enhance the service level its partners can offer their customers. For more information, please visit www.freestartech.com and www.rahaxi.com
Forward-looking statements
Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. When used in this press release, the words "expects," "anticipates," "believes," "plans," "will" and similar expressions are intended to identify forward-looking statements. These are statements that relate to future periods and include, but are not limited to, statements regarding our adequacy of cash, expectations regarding net losses and cash flow, statements regarding our growth, our need for future financing, our dependence on personnel, and our operating expenses. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the companies, are forward-looking statements that involve risks and uncertainties. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. These risks and uncertainties include, but are not limited to, those discussed above as well as risks set forth above under "Factors That May Affect Our Results." These forward-looking statements speak only as of the date hereof. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Technical complications that may arise could prevent the prompt implementation of any strategically significant plan(s) outlined above. The companies' caution that these forward-looking statements are further qualified by other factors including, but not limited to, those set forth in FreeStar's Form 10-KSB filing and other filings with the U.S. Securities and Exchange Commission (available at www.sec.gov). FreeStar undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events, or otherwise.