PR Newswire
MIAMI, May 15, 2014
MIAMI, May 15, 2014 /PRNewswire/ -- Net Element, Inc. (NASDAQ: NETE) ("Net Element" or the "Company"), a technology-driven group specializing in mobile payments and value-added transactional services in emerging countries and in the United States, announced today financial results for its first quarter ending March 31, 2014. Company generated positive cash flow as compared to significant losses for the same period in the prior year.
Conference Call
Net Element will host a conference call to discuss the financial and business highlights.
Date: | Friday, May 16, 2014 |
Time: | 9:00AM Eastern / 6:00AM Pacific |
Participant Dial-In: | 877-303-9858 (Toll Free), 408-337-0139 (International) |
Webcast: |
It is recommended that participants dial in approximately 10 minutes prior to the start of the 9:00AM Eastern call. A webcast replay will be available following the call on the investor relations site http://investor.netelement.com/events.cfm.
First Quarter 2014 Financial Highlights:
"We are pleased with our results and progress in the first quarter of 2014 as we continue to execute our strategy of driving revenue and reducing our liabilities," commented Oleg Firer, Chief Executive Officer of Net Element. "We are committed to building the underlying businesses as well as finding strategic opportunities to complement and accelerate the growth and profitability of the overall company to increase shareholder value."
First Quarter 2014 Results
Net revenues were $4.8 million for the three months ended March 31, 2014 as compared to $0.9 million for the three months ended March 31, 2013. The increase in net revenues is primarily a result of the purchase of Unified Payments, LLC in April 2013.
Operating activities provided approximately $0.7 million of cash for three months ended March 31, 2014, contrasted with $7.2 million of cash used for the three months ended March 31, 2013. The net loss for the three months ended March 31, 2014 was $3.6 million as compared to a net loss of $3.2 million for the quarter ended March 31, 2013. The most significant increase in operating cash flow was caused by increased cash collections in TOT Money due to collection on billings in the current period as the business and operations of TOT Money are re-organized to replace its billing system and involvement of our former general director of TOT Money. For the three months ended March 31, 2014, accounts receivable and advances to aggregators provided $4.5 million in operating cash flow as compared to the three months ended March 31, 2013 which used $4.8 million for accounts receivable and advances to aggregators.
We reported a net loss of $3.6 million or ($0.11) per share, for the three months ended March 31, 2014 as compared with a net loss of $3.2 million, or ($0.11) per share, for the three months ended March 31, 2013. Loss from continuing operations (including loss attributable to the non-controlling interest) for the three months ended March 31, 2014 was $3.6 million or ($0.11) per share as compared to a loss from continuing operations of $2.9 million or ($.10) per share for three months ended March 31, 2013. Our net loss for the three months ended March 31, 2014 and 2013 primarily resulted from our impairment of goodwill, increase in provision for loan losses and general and administrative expenses.
Total liabilities decreased to $34.9 million at March 31, 2014 from $37.9 million at March 31, 2013. The exchange of our 10% interest in T1T Lab for the note due to T1T for $1.1 million is the primary driver of the reduction in related party payables. Additionally, our factoring agreement with Alfa Bank in Russia was reduced by $1.1 million to $7.4 million at March 31, 2014 versus $8.5 million at December 31, 2013 as we migrated to our own billing system and began using a new sales force directly managed by Net Element.
Additional information regarding Net Element's results of operations for its first-quarter ended March 31, 2014 may be found in Net Element's quarterly report on Form 10-Q, which was filed with the Security and Exchange Commission (SEC) on May 15, 2014 and may be obtained from the SEC's Internet website at http://www.sec.gov.
NET ELEMENT, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
| Quarter ended March 31 | ||
| 2014 | | 2013 |
| | | |
Net revenues | $4,843,479 | | $868,150 |
| | | |
Costs and expenses: | | | |
Cost of revenues | 3,528,494 | | 275,547 |
General and administrative (includes $52,050 and $0 of share based compensation for | 3,141,945 | | 2,778,825 |
Provision for loan losses | 101,711 | | 406,585 |
Depreciation and amortization | 591,699 | | 35,710 |
Total costs and operating expenses | 7,363,849 | | 3,496,667 |
Loss from operations | (2,520,370) | | (2,628,517) |
Interest expense, net | (1,061,480) | | (149,634) |
Other expense | (235) | | (84,550) |
Loss from continuing operations before income tax provision | (3,582,085) | | (2,862,701) |
Income tax provision | (39,933) | | - |
Loss from continuing operations | (3,622,018) | | (2,862,701) |
Net loss attributable to the non-controlling interest | 28,690 | | (188) |
Discontinued operations: | | | |
Loss from operations of discontinued entities | - | | (370,942) |
Total discontinued operations | - | | (370,942) |
Net loss | (3,593,328) | | (3,233,831) |
Foreign currency translation (loss) | 1,283,298 | | (26,073) |
Comprehensive loss | $(2,310,030) | | $(3,259,904) |
| | | |
Loss per share – basic and diluted continuing operations | $(0.11) | | $(0.10) |
Loss per share – basic and diluted discontinued operations | - | | (0.01) |
Total Net loss per share | $(0.11) | | $(0.11) |
| | | |
Weighted average number of common shares outstanding - basic and diluted | 32,273,298 | | 28,224,893 |
NET ELEMENT, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
| Quarter ended March 31 | ||
| 2014 | | 2013 Werbung Mehr Nachrichten zur Mullen Automotive Aktie kostenlos abonnieren
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