FNDS3000 Corp Announces Fiscal 2011 First Quarter Results

JACKSONVILLE, Fla., Jan. 18, 2011 /PRNewswire/ -- FNDS3000 Corp (OTC Bulletin Board: FDTC), an international prepaid processing company currently introducing electronic payment solutions to the South African market, today announced its financial and operational results for the first quarter of fiscal 2011, ended November 30, 2010.  

Key Financial Highlights for Three Months Ended November 30, 2010:

• Revenue totaled $365,000, up from $78,000 reported for the three months ended November 30, 2009.  
• The number of prepaid cards issued and activated has increased to approximately 35,600.  
  • On a quarter-over-quarter basis, the number of prepaid cards issued and activated during the first quarter of fiscal 2011 rose 52% when compared to 23,400 cards issued and activated as of August 31, 2010.
  • During the three months ended November 30, 2010, more than 90 million Rand (approximately $13 million at current Rand to US Dollar exchange rates) was loaded to the cards.
• After factoring interest income and expense and non-cash charges related to foreign currency re-measurements recorded in the comparable first quarter reporting periods, net loss totaled  $1,054,000, or $0.01 loss per basic and diluted share, representing an 7.5% decrease from $1,140,000, or $0.03 loss per basic and diluted share.

As of November 30, 2010, cash and accounts receivable stood at approximately $510,000; there was no long term debt; and total stockholders' equity was $1.32 million.  

Operational Highlights for the First Quarter of Fiscal 2011:

• During the three months ended November 30, 2010, FNDS3000 announced the implementation of several strategic reorganizational initiatives specifically aimed at streamlining its senior management structure, reducing corporate overhead costs and strengthening its South African business operations.

• The Company also announced the signing of a $2.5 million, non-brokered equity financing agreement that will be closed in four tranches over a nine-month period.  On October 19, 2010, FNDS3000 closed on the first of the four tranches, receiving net proceeds of $1,000,000.  The follow-on financings, equal to $1,500,000, are scheduled to conclude by July 1, 2011.

Commenting on the results, Raymond Goldsmith, Chairman and CEO of FNDS3000, noted, "We are very pleased that we have continued to experience measured quarter-over-quarter growth in revenues, which is a direct reflection of the solid progress we're making in getting prepaid cards issued to and activated by our new cardholders in South Africa. For the remainder of Fiscal 2011, we expect to strengthen our prepaid processing platform and expand our prepaid product and service offerings."

About FNDS3000 Corp

Headquartered in the U.S. with operations in South Africa, FNDS3000 Corp is engaged in executing a series of international growth initiatives designed to position the Company as a major player in the world's fastest growing payment card segment: prepaid cards.  Given that 40% of the adult population in South Africa is currently unbanked or underbanked, FNDS3000's initial focus has concentrated on offering tailored prepaid card programs and services to business customers in this developing prepaid market, including network branded and closed loop programs that support employee payroll, insurance, medical aid, gift cards, prepaid cellular charges and small-scale international transfer of funds. The Company provides these programs and services through a proven, proprietary U.S. processing platform that has been designed for international and cross border capability.  For more information, please visit www.FNDS3000.com, or follow us on Twitter @_FNDS3000.  

Forward Looking Statements

Matters discussed in this press release contain forward looking statements.  Investors are cautioned that such forward looking statements involve risk and uncertainties, which could significantly impact the actual results, performance, or achievements of the Company.  Such risks and uncertainties include, but are not limited to, the potential loss of our relationships with each of the parties that sponsor our cards and banks that manufacture, issue, and own the cards; the loss of our service providers; security breaches of our electronic information; the inability to raise sufficient capital to fund its operations; and other risks as may be detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.  The Company assumes no obligation to publicly update or revise its forward looking statements even if experience or future events make it clear that any of the projected results expressed or implied herein will not be realized.

SOURCE FNDS3000 Corp