DUBLIN, Ireland, Oct. 1, 2007 (PRIME NEWSWIRE) -- FreeStar Technology Corp. (OTCBB:FSRT) said today the Company has achieved record revenues for the fiscal year ended June 30, 2007. Revenue for the year ended June 30, 2007 was $3,780,000, which is an increase of 80% over the revenue of $2,097,749 for the prior year ended June 30, 2006. The Company processed a total of 19,443,999 transactions during the year, an increase of 1,589,839 or 8.9% compared to 17,854,160 transactions processed during the prior year. For the first time, FreeStar's financial statements disclosed revenue by category: transaction processing and related services were $1,945,512; consulting services provided by the Company's subsidiary Project Life Cycle Partners, Ltd. were $1,349,363; and hardware sales and related revenue were $484,860. During the prior year ended June 30, 2006, all of FreeStar's revenue of $2,097,749 was attributable to transaction processing and related services.
Paul Egan, FreeStar's Chief Executive Officer, said, "Once again, we are proud to report FreeStar's continued growth in sales and transaction volume. We believe the market is our best spokesperson, and the message from the market is clear: FreeStar's products and services are very well received. During the year ended June 30, 2007, we continued to grow our core transaction processing business, and also successfully implemented our strategy of providing separate but complementary services offerings. It is important to note that during the prior year, our transaction processing revenue included approximately $319,000 of customization and installation services provided to our customers; there was no such revenue during the current year. Revenue from pure transaction processing was $1,945,512 during the current year, and $1,759,384 during the prior year, an increase of 10.5%. On a volume basis, transaction processing increased by 8.9% over the prior year."
Paul Egan continued, "We believe we will continue to report increased sales in the coming quarters. We are not only continuing to increase our core client base, but we also expect revenue contributions from Monex, CUP (China Union Pay), Swedish EMV certifications and Global Refunds, each of which could significantly impact our revenue streams."
FreeStar reported a net loss of $16,207,533 for the year ended June 30, 2007, an increase of 16.5% compared to a net loss of $13,999,773 during the prior year. Ciaran Egan, FreeStar's Chief Financial Officer, commented that, "Approximately $9.9 million of our net loss is attributable to non-cash charges, such as the value of stock options and shares issued to consultants and employees. In order to succeed in this very highly competitive industry, we have to attract top-quality talent, and we believe that by utilizing our financial resources in this fashion we achieve that goal while conserving our cash."
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.