FreeStar Technology Corp. (BULLETIN BOARD: FSRT), an international card payments processor and technology company, today reported its financial results for the third quarter of its 2006 fiscal year, ended March 31, 2006.
Revenue in the period rose more than 19% to $494,296 from $412,778 in the comparable period of fiscal 2005. The company explained that the revenue gains reflect an increase in fees obtained from development and consulting services as well as processing fees generated by the company's subsidiary Rahaxi Processing Oy.
The number of transactions processed increased 18% to 4.07 million during the quarter from 3.45 million during the comparable period of the prior year.
Net loss for the period narrowed 65% to $2,216,696, or $0.01 per share from $6,413,501 million or $0.08 per share a year ago. FreeStar Technology President and CEO Paul Egan said, "We are pleased to report another quarter of steady progress in operations and in executing our business strategy. Operationally, sales and volume continue to grow, and we reduced our quarterly losses by 65% compared to the comparable quarter of last year."
"Strategically," he added, "we strengthened our balance sheet significantly during the quarter. Moreover, we achieved a significant technological advance, when Rahaxi Processing obtained EMV-Certification for its Rahaxi-OTM software."
"To maintain our strong technological advantages, we invested 29% more in product development in the quarter, spending $457,000 on software development and acquisition, up from $326,000 during the comparable quarter of the prior year," he said.
For the nine months, ended March 31, 2006, revenue increased more than 39% to $1.67 million from $1.20 million reported for the nine months ended March 31, 2005. The number of transactions processed gained more than 15% to 13.3 million from 11.5 million recorded in the nine months ended March 31, 2005. Egan said, "We are excited about the coming fiscal year, believing that we are very well positioned to continue to execute our business plan."
Other significant developments during the quarter:
- The Company agreed to terms for $9.2 million in financing with a group of European investors
- The Company signed a private placement agreement to secure $10 million in financing from Svensk Kredit och Finans AB, based in Stockholm, Sweden and
- The company's Rahaxi Processing Subsidiary achieved EMV-Certification for its Rahaxi-OTI (Open Terminal Interface) Middleware Solution