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Fireswirl Reports 2011 Q3 Financial Results and Strong Revenue Growth(November 08, 2011)
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/08/11 -- Fireswirl Technologies Inc. (TSX VENTURE:FSW), "the Company", today announced its financial results for the third quarter ended September 30, 2011. All figures are quoted in Canadian dollars. Financial statements and accompanying MD&A are available on SEDAR.
Highlights for the third quarter were as follows:
-- Total operating revenue increased to $5,957,481 and $15,136,428 for the three and nine months ended September 30, 2011 compared to $4,743,827 and $13,692,034 during the same period in 2010, representing an increase of 25.6% and 10.6%. The merchandise revenue has increased by 22.1% and 11.4% respectively while service revenue has increased by 201.3% and 19.7% respectively offset by no advertising revenue during the current period. -- Total operating expense was $6,075,687 and $15,916,984 for the three and nine months ended September 30, 2011 compared to $4,925,489 and $14,060,530 for the same period of 2010, representing an increase of 23.4% and 13.2% respectively. The increase was mainly due to the increase in cost of sales related expenses corresponding to increase in revenue and an increase in depreciation expense due to additions to assets in 2011 Q1. -- The Company reported a comprehensive loss on common shares of $30,933 and $638,868 for the three and nine month period ended September 30, 2011 compared to a comprehensive loss on common share of $272,827 and $647,453 for the same period of 2010, representing a decrease in loss of 88.7% and 1.3% respectively. This is mainly due to a gain in foreign exchange adjustments. -- Fully diluted loss per share was $0.00 and $0.02 for the three and nine month period ended September 30, 2011 compared to fully diluted losses of $0.01 and $0.02 for the same period in 2010. -- As at September 30, 2011, the Company had cash and cash equivalents (including restricted cash) of $2,623,359 compared to $1,145,859 as at December 31, 2010, representing an increase of 128.9%. As at September 30, 2011, the Company had working capital of $1,217,688 compared to $1,181,647 as at December 31, 2010, representing a decrease of 3.1%. The Company had long term debt of $nil as at September 30, 2011 compared to $17,424 as at December 31, 2010. -- On August 29, 2011, the Company has granted 400,000 stock options at an exercise price of $0.15 to its employees, officers and directors. Granted options vested 50% immediately and 50% to be vested in one year. The options are exercisable over 5 years. The grant fair value of options was $0.08. -- On September 28, 2011, the Company announced that its subsidiary, Beijing Xingchang Xinda Technology Development Co., Ltd. ("XCXD"), has been appointed by Casio (Shanghai) Trading Co., Ltd. to exclusively build and operate its online flagship store in Taobao Mall, the largest online B2C shopping portals in China, and sell original Casio products.
Tony Lau, CEO, Fireswirl Technologies Inc. stated, "We are pleased to report that we have continued to increase our scale of business in terms of both sales revenue and the number of well-established brands we work with during this financial period. Our business model of partnering with major international and domestic brands to operate their official online store in China is very successful, and we are expanding into more product categories while improving our technologies and operation efficiencies at the same time."
"Unlike the generally depressed world economy, Chinese e-commerce market is growing by leaps and bounds. Fireswirl is striving to capture the phenomenal growth and create value for the shareholders," said Mr. Lau.
Fireswirl Technologies Inc. (TSX VENTURE:FSW) is focused on creating transactional revenue by engineering electronic and mobile commerce solutions for content providers. The Company's technology has broad applications for solutions requiring multiple payment interfaces, multicurrency and multi-language capabilities. Our solutions can be adapted to any industry seeking high volume or micro-payment solutions involving a wide base of users through internet or wireless applications.
Further information can be found on the company at: www.fireswirl.com.
This news release contains certain forward-looking statements that reflect the current views and/or expectations of Fireswirl Technologies Inc. with respect to its performance, business and future events. Investors are cautioned that all forward-looking statements involve risks and uncertainties including, without limitation, those relating to changes in the market, potential downturns in economic conditions, foreign exchange fluctuations, general demand, competition and our ability to implement our business plans and strategies in a timely manner or at all. These risks, as well as others, could cause actual results and events to vary significantly. Fireswirl Technologies Inc. does not undertake any obligations to release publicly any revisions for updating any voluntary forward-looking statements.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.
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