First Ecom, which is still in development stage, posted revenue from continuing operations for the quarter of US$ 24,152 as compared with revenue for the same quarter in 2000 of US$ 5,730. Revenue from continuing operations for the six months ended June 30, 2001 was $36,908 as compared to $10,532 for the six months ended June 30, 2000.
The increase in revenue for the second quarter was due to an increase in processing of transactions from both the banks enabled directly by the Company and the consolidation of FEDS. The current quarter's revenue is attributable solely to payment processing operations.
Net loss for the second quarter of 2001 after amortization, depreciation and non-cash compensation associated with stock options was US$ 1,580,568 as compared to the first quarter of 2000 net loss of US$ 4,322,430. This is a sizable improvement over the previous year.
Net loss per share for the quarter was US$ 0.08 per share as compared to a net loss per share of US$ 0.24 for the same quarter in 2000.
While the Company had in excess of US$ 23,000,000 in cash and cash equivalents at the end of the quarter, interest income decreased 48 percent as compared with the second quarter of 2000. This decrease was primarily due to the reduction in short term interest rates.
During the second quarter of fiscal year 2001, the Company concentrated its efforts on delivering its payment processing solutions in the Asia Pacific region, and in addition, acquired the remaining 50% of First Ecommerce Data Services Limited ("FEDS"). FEDS provides payment-processing solutions primarily in the Caribbean and Americas regions.
Operating expenses for the three months ended June 30, 2001 were 65% lower than for the comparable period in 2000 and for the six months ended June 30, 2001 were 49% lower than for the comparable period in 2000. This reflects the Company's concentrated effort on reducing costs.
The Company had a total of 27 (including 8 at FEDS) full time employees as at June 30, 2001 as compared to 76 full time employees as at June 30, 2000. This decrease in employees has resulted in a recovery, during the six months ended June 30, 2001, of $2,345,710 of previously expensed stock-based compensation costs. During the comparable period ended June 30, 2000, the Company expensed $1,992,927 of stock-based compensation.
"During the second quarter the Company has focused on getting the structure right," said Gregory Pek, president and Co-CEO of First Ecom. "We did this by continuing with the cost control measures introduced during the first quarter and by focusing our resources on our key strategies, namely building up the payment processing side of the business and furthering our interest and involvement in the oil and gas exploitation industry.
We engaged in serious discussions with Gasco Energy, which resulted in the Company entering into an agreement, in early July, to acquire a 26% equity interest. This is the Company's first venture in the oil and gas business and all information we are receiving indicates that the potential is much greater than we first anticipated."
Pek added, " Costs are down, revenues are up, in fact our processing revenue for the month of July is in excess of $60,000. The Company structure is starting to take shape and our major strategic initiatives have been implemented. Despite the difficult market and business environment I remain confident that we are heading in the right direction and that the patience of our shareholders will be rewarded."
The Company's financial results for the quarter ended June 30, 2001 accompanied the filing of its Form 10-Q with the Securities & Exchange Commission on August 14, 2001, which is available on-line at the SEC's Edgar database at www.freeedgar.com.