DUBLIN, Nov. 20, 2007 (PRIME NEWSWIRE) -- FreeStar Technology Corp. (OTCBB:FSRT) today said the Company has achieved record revenues for the first quarter of its fiscal year. Revenue for the three months ended September 30, 2007 was $1,354,495, which is an increase of 193% over revenues of $461,860 reported for the three months ended September 30, 2006. The Company processed a total of 5,125,674 transactions during the current quarter, an increase of 207,721 or 4.2% compared to 4,917,953 transactions processed during comparable quarter of the prior year. FreeStar's revenue consisted of transaction processing and related services of $487,723; consulting services provided by the Company's subsidiary, Project Life Cycle Partners, Ltd., of $605,977; and hardware sales and related revenue of $260,795. During the prior year quarter ended September 30, 2006, all of FreeStar's revenue of $461,860 was attributable to transaction processing and related services.
Paul Egan, FreeStar's Chief Executive Officer, said: "A core component of our strategy has been to achieve aggressive revenue growth by developing not only new revenue streams, but by delivering steady, dependable growth from existing product lines. That philosophy has begun to yield results as our transaction processing volume has now increased for fifteen consecutive quarters when compared to the comparable quarter of the prior year. In addition, during the quarter ended September 30, 2007, we began recognizing revenue from new sources, as we had hardware sales in the Dominican Republic from our subsidiary company FreeStar Dominicana. This current rate of growth does not include potential growth from future contracts in this quarter and next. The future contracts include potential transactions with Monex and China Union Pay. We also are working on expanding our existing relationship with Global Refund and have launched in two new countries which will be recognized in our bottom line."
FreeStar reported a net loss of $5,639,278 for the three months ended September 30, 2007, an increase of 126% compared to a net loss of $2,470,221 during the prior year. Ciaran Egan, FreeStar's Chief Financial Officer, commented that "approximately $3.3 million of our net loss is attributable to non-cash charges, such as the value of stock options financing and shares issued to consultants and employees."
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.