RESTON, Va., Feb. 5, 2008 (PRIME NEWSWIRE) -- Red Branch Technologies Inc. (Pink Sheets:RBTI) today released the un-audited financial performance of its Trava, Inc. d/b/a Magellan360(tm) subsidiary for the 2007 fiscal year as the company prepares to launch its two highly-anticipated online travel products, mTravel(tm) and my/mTravel(tm), into the market. For the 2007 fiscal year ending in December, the Company's Magellen360(tm) subsidiary increased revenues 11.94% to $21,929,702.00, $.238 per fully diluted share, from $19,591,388 or $.212 per share in 2006 (non-GAAP). Gross margins increased 8.74% in the same period to $1,748,798 from $1,608,308, while fixed expenses increased a modest 2.02% to $1,688,198 from $1,654,816 in the prior year period.
Magellan360(tm) supplies full-cycle booking-to-fulfillment technology and services to more than 125 independent travel professionals and agencies nationwide. Magellan's "touchless" on-line fulfillment technology and agent-based transactions demonstrate its market leading technology and positioning, which will be leveraged to provide the foundation for Red Branch Technologies' soon-to-be-launched mTravel(tm) product -- targeting enterprise corporate travel needs -- and my/mTravel(tm) online product, targeting the underserved needs of the independent business traveler. More information about Magellan360 is available by calling (800) 360-6208 or by www.magellan360.com.
Doug Foran, Red Branch President/CEO, commented, "We are extremely pleased with the year-over-year financial performance of Magellan360(tm). While 12% organic top-line sales growth and only 2% growth in expenses for '07 is solid to say the least, the standalone business is well positioned to dramatically increase revenues and earnings power in the coming 12-months as we add new affiliates into the system, institute new pricing actions and grow fulfillment fee revenue from our new mTravel(tm) and my/mTravel(tm) products when they launch. It is even more encouraging that, going forward, Magellan360(tm) is projected to represent only a small fraction of the revenue and earnings opportunity for the Company. In short, 2008 promises to be a break-out year for Red Branch Technologies and its shareholders."
About Red Branch Technologies, Inc. (Pink Sheets:RBTI)
Red Branch Technologies, Inc. makes business travel easier, more secure and more responsive for both the hard-charging business traveler and the corporation by meeting travel needs at each point in the travel cycle. The company's innovative my/mTravel(r) and mTravel(r) products automate the business travel process from planning and booking to en route services and support, thru post travel reporting and unused ticket redemption. Red Branch's Magellan360 provides agency and net-delivered back office services to independent professional travel marketers. For more information, please visit: www.redbranchtechnologies.com
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Safe Harbor
This press release contains statements, which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of Red Branch Technologies, Inc., and members of its management as well as the assumptions on which such statements are based. The financial results provided herein are a non-GAAP presentation and include total transaction values "revenues" consistent within the travel industry. Trava, Inc d/b/a Magellan360 follows a hybrid accrual revenue recognition policy. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully and the ability to complete before-mentioned transactions. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.