Message #22 From:
Stock News Bot Date: November 15, 2006 06:05:00 AM
PAYD News Paid Inc. Reports Third Quarter 2006 Results and Business Update: Revenue Increases 204% over 2005
WORCESTER, Mass.--(BUSINESS WIRE)--Paid, Inc. (OTCBB:PAYD) today announced results for the third quarter
and nine-months ended September 30, 2006. Revenue for the third quarter
of 2006 was $1.5 million, an increase of 204% compared to revenue of
$492,000 for the same period in 2005. Revenue for the nine months ended
September 30, 2005 was $4.9 million, compared to revenue of $2.0 million
for the same period 2006, an increase of 147%.
“We were pleased with our revenue growth that
is due to the continued growth of our celebrity services business,”
said Greg Rotman, Paid CEO. “With projects
already under way, we believe that our revenue will continue to grow in
the fourth quarter to make it one of our best quarters to date.”
During the third quarter, Paid derived 89% of its revenue from sales of
fan club memberships, merchandise, and fan experiences related to tours
of performing artists, 8% from sales of the Company's own product and
fees from buyers and sellers through the Rotman Auction operations and
3% from sports marketing. Fan experience, Fan club membership and
related merchandise sales revenues were $1,338,300. Management
anticipates increases from fan club memberships, merchandise, and fan
experiences from tours, products and services related to several
performing artists during the fourth quarter of 2006.
Paid derived greater revenue related to fan club memberships,
merchandise, and fan experiences of $1,185,200, offset by revenue
decreases in sports marketing services of $4,600 and sales of Company
owned product of approximately $169,500 compared to the same period in
2005. Gross profit from Company owned product sales for third quarter
2006 was $71,900, $61,300 more than in 2005. Gross profit margin
increased as a result of a management decision during the third quarter
of 2005 to liquidate slower moving inventories while in 2006 goods were
being sold at more normal margins.
Operating Expenses -- Total operating expenses for the third quarter of
2006 were $1,096,300 compared to $1,108,100 in third quarter 2005, a
decrease of $11,800.
Sales, general and administrative ("SG&A") expenses for the third
quarter 2006 were $942,900, compared to $969,300 for third quarter 2005.
The decrease of $26,400 in SG&A costs includes decreases in depreciation
and amortization of $206,500, as certain assets became fully depreciated
during 2006 and 2005 and other costs of $43,300, offset by increases in
payroll and related costs, professional fees, rents, travel, postage and
shipping, and credit card fees totaling $223,400. The travel, credit
card commissions and postage and shipping increases are all principally
attributable to tours of performing artists.
Interest Expense -- In third quarter 2006, Paid incurred $6,600 of
interest charges, a decrease of $73,800 from the comparable 2005 period
attributable to settlement of convertible debt during the second quarter
of 2006.
Other Expense -- Other expense for third quarter 2006 includes $266,300
of realized and unrealized depreciation in the fair value of call
options received in the 2005 settlement.
Net Loss -- Paid realized a net loss for third quarter 2006 of $913,600
compared to a net loss of $1,018,300 for the comparable quarter in 2005.
Net profit for the third quarter was less than $.01 per share while the
net loss for third quarter 2005 was $.01 per share. The net loss for the
nine months ended September 30, 2006 was $1,141,100 compared to a net
loss of $2,459,300 for the comparable 2005 period.
Patent Status Update -- In May 2005, Paid received from the U.S. Patent
and Trademark Office (USPTO) a verbal notification of allowance. Paid
has not received the formal notification of allowance or been granted
the patent for Paid’s patent application for
online shipping calculation processes. Paid and its attorneys at Hunton
& Williams, LLP, continue to work with the USPTO to move the patent
application forward. Pending receipt of the formal written notice of
allowance of the Company's patent application, the Company will pursue a
variety of possible revenue streams from its "AuctionInc" platform and
patent which hosts a suite of management tools and enhanced shipping
calculator solutions for ecommerce enterprises.
Paid’s 10-QSB filing is available in its
entirety at www.sec.gov.
About Paid, Inc.
Paid, Inc.’s celebrity services provides
celebrities and organizations with official Web sites and fan club
services that include e-commerce storefronts, ticketing and fan
experience packages, and Web site content, such as news, polls, message
boards, contests, biographies and custom features to attract tens of
thousands of visitors daily, as detailed on its Web site, www.paidcelebrity.com.
The Company also sponsors autograph signing events and other sports
marketing services for sports clientele. Using proprietary
patent-pending technology, Paid's innovative AuctionInc brand shipping
calculation and auction management software and services are utilized to
streamline online auctions, ecommerce and Web site development and
hosting. The Company's common stock is traded on the Nasdaq OTC Bulletin
Board under the symbol PAYD. For further information, visit http://www.paid.com.
Forward Looking Statements:
This Press Release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934 that are based upon current
expectations or beliefs, as well as a number of assumptions about future
events, including matters related to the Company's operations and
expectations about celebrity programs and fan club activities. Although
the Company believes that the expectations reflected in the
forward-looking statements and the assumptions upon which they are based
are reasonable, it can give no assurance that such expectations and
assumptions will prove to have been correct. The reader is cautioned not
to put undue reliance on these forward-looking statements, as these
statements are subject to numerous factors and uncertainties. In
addition, other factors that could cause actual results to differ
materially are discussed in the Company's most recent filings, including
Form 10-QSB with the Securities and Exchange Commission.
