Highlights of Quarter Ended December 31:
* Increased Revenue Reporting of $ 2.8 million, an increase of
120% for the comparable 6 month period of Fiscal 2007.
* Revenue increased 78% to $1.4 million from second quarter 2006
DUBLIN, Feb. 20, 2008 (PRIME NEWSWIRE) -- FreeStar Technology Corp. (OTCBB:FSRT), an international card payments processor and technology company, today reported financial results for the three month and six-month periods ended December 31, 2007.
Revenue for the three months ended December 31, 2007 was $1,448,713 compared to $811,902 for the three months ended December 31, 2006, an increase of $636,811 or approximately 78%. Revenue consisted of Transaction processing and related revenue of $512,782; Consulting services revenue of $683,862 and Hardware and related revenue of $252,069.
In the six month period ended on 31th of Dec. 2007, revenue rose 120% to $2,803,208 from $1,273,762 in the comparable 6 month period of fiscal 2007. FreeStar's revenue for the 6 month period consisted of transaction processing and related services of $1,000,505; consulting services provided by the Company's 50% stake in Project Life Cycle Partners, Ltd. (acquired in November 2006) of $1,289,839; and hardware sales and related revenue of $512,864. FreeStar began shipping terminals in December 2006.
FreeStar Technology President and CEO Paul Egan said, "We expect to see continued increased hardware related sales to our expanding customer base, but also recognize increasing revenue streams from annual maintenance fees and service initiation fees. Our cross border payments processing has now expanded to Spain, Iceland, Denmark, Sweden and the U.K. We are seeing a steady increase in DCC (Dynamic Currency Conversion) Transactions from our our partner, Global Refunds. We have successfully deployed terminals in Dominican Republic and see continuing growth in the region. Our International projects are nearing deployment and can expect to see a large increase in processing revenues throughout the remainder of fiscal 2008."
The Company's transaction processing and related revenue was $512,782 for the three months ended December 31, 2007, compared to $497,810 during the three months ended December 31, 2006, an increase of $14,972 or approximately 3%. The Company processed a total of 5,060,184 transactions during the three months ended December 31, 2007, a decrease of 231,865 or approximately 4.4%, compared to 5,292,049 transactions processed during the three months ended December 31, 2006.
The slight decrease was primarily related to the increase in hardware sales, whereby some clients who purchase a Point of Sale terminal are charged a flat recurring monthly fee rather than per transaction fee. The slight decrease is more than offset by the increase in hardware and related revenue which was $252,069, an increase of $201,921 over the comparable period in the prior year.
FreeStar recorded a net loss of $4,568,270 for the three months ended December 31, 2007 compared to $3,124,456 for the three months ended December 31, 2006, an increase of $1,443,814 or approximately 46%. Ciaran Egan, FreeStar's Chief Financial Officer, commented that "approximately $2,300,000 of this amount consisted of non-cash compensation in the form of stock, stock options, and warrants issued to consultants and employees. We continue to launch new innovative products and expand our geographical market for increased growth opportunities in 2008. We believe that our investment program in our product and sales and marketing programs together with our growing pipelines will drive revenue growth in 2008."
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.