BEIJING, Aug. 31 /Xinhua-PRNewswire-FirstCall/ -- MyStarU.com, Inc. (OTC Bulletin Board: MYST), announced today that the Company has filed Form 10-QSB on August 21 to report its financial results for the 3rd quarter ended June 30, 2007.
The detailed report is available at the following URL: http://www.sec.gov/Archives/edgar/data/1139570/000114420407045550/v085631_10qsb.htm
Key 3rd Quarter Results
Revenues increased by $4,614,790 due primarily to:
Revenues recorded at $7,394,480 for the three months ended June 30, 2007, compared to $2,779,690 for the same period ended June 30, 2006. The increase of $4,614,790 is due primarily to the enormous increase in the royalty income from the movie copyrights segment and the import and export trading segment, although there was a decrease in the integrated communications network solutions segment. We now have 3 new segments of income compared to the same period ended June 30, 2007. The import and export trading generated $3,035,780, the royalty income from the movie copyrights generated $3,069,921 and the provision of Internet corporate video services generated $928,779.
Costs of Sales increased by $3,768,339 due primarily to:
Costs of sales were $4,689,552 for the three months ended June 30, 2007, compared to $921,213 for the same period ended June 30, 2006. Costs of sales include cost of goods in trading, depreciation and other cost of sales. Cost of trading included all the costs that Panyu M&M incurred in their import and export trading activities in the amount of $2,979,725. Depreciation represents the depreciation and amortization of software, websites and copyright of movies that relate to the revenue of the Company, which amounted to $1,496,760. Other costs of sales were the purchase of various contents and other later-stage production from raw contents and costs associated with the performance of our communication services totaling $213,067.
Operating Expenses increased by $1,366,517 due primarily to:
For the three months ended June 30, 2007, we incurred operating expenses of $1,544,529 as compared to $178,012 for the same period ended June 30, 2006. The $1,544,529 incurred as of June 30, 2007, included general operating expenses of $684,976, salaries of $239,950 and allowance of bad debts of $237,587. Stock-Based Compensation Expense had a net increase of $355,209 for the three months ended June 30, 2007.
Key Nine Months Results
Revenues increased $5,912,354 due primarily to:
Revenues were recorded at $16,791,961 for the nine months ended June 30, 2007, compared to $10,879,607 for the same period ended June 30, 2006. The increase of $5,912,354 is due primarily to the increase in sales and number of subsidiaries in different segments of income. Currently, we have 3 new segments of income compared for the same period ended June 30, 2006. Import and export trading generated $6,744,760, royalty income from movie copyrights generated $3,862,310 and the provision of Internet corporate video services generated $4,285,791. The new segment of business brings significant increase of income to the Company.
Costs of Sales increased $7,872,003 due primarily to:
Costs of sales were $10,766,897 for the nine months ended June 30, 2007, compared to $2,906,894 for the same period ended June 30, 2006. Costs of Sales included purchase of various contents and other later-stage production from raw contents and costs associated with the performance of our communication services. The increase of $7,872,003 was due primarily to the increase in the number of our subsidiaries, of which $6,620,945 was used for our import and export trading segment.
We classify the depreciation of software relating to the revenue of the Company, to the cost of sales. Other depreciation expenses related to motor vehicles and office equipment and are stated in Selling, General and Administration Expenses. This had no impact on our prior earnings reported.
Operating Expenses increased $4,246,855 due primarily to:
For the nine months ended June 30, 2007, we incurred operating expenses of $7,659,738, as compared to $3,412,883 for the same period ended June 30, 2006. Operating Expenses included allowance of bad debts of $3,267,636, salaries of $575,735 and stock-based compensation expense of $2,062,363.
Stock-Based Compensation Expense had a net decrease of $613,642 for the nine months ended June 30, 2007, due to expiration of some consulting contracts.
Other income increased $25,302 due primarily to:
The other income was $27,843 for the nine months ended June 30, 2007, compared to $2,541 for the same period ended June 30, 2006. $27,843 includes interest income of $3,763 and other income of $24,080.
About MyStarU.com, Inc.
Mystaru.com, Inc. (MYST) is a Total Solutions Provider that offers Integrated Communications Network Solutions and Internet Content Service in universal voice, video, data web and mobile communications for interactive media applications, technology and content leaders in interactive multimedia communications. It develops, markets and sells a universal media software solution for enterprise-wide deployment of integrated voice, video, data web and mobile communications and media applications. Mystaru.com, Inc. does business in Asia via its wholly-owned subsidiaries, Mystaru Ltd. (formerly known as IC Star MMS, Ltd. http://www.mystaru.com , http://www.skyestar.com, http://www.goongreen.org , http://www.icurls.com ) Guangzhou TCOM Computer Technology Limited and majority owned subsidiary Subaye.com, Inc. (http://www.subaye.com).
Safe Harbor
The statements made in this release constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "expect," or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, changing economic conditions, interest rates trends, continued acceptance of the Company's products in the marketplace, competitive factors and other risks detailed in the Company's periodic report Filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.
For more information, please contact:
Ms. Shirley Li
Mystaru.com, Inc.
Email: IR@mystaru.com
