Sitoa Global Reports Third Quarter 2012 Financial Results
PALO ALTO, Calif., Oct. 23, 2012 /PRNewswire via COMTEX/ -- Sitoa Global Inc. (OTCQB: STOA) (PINKSHEETS: STOA) ("Sitoa" or the "Company"), an e-commerce solutions and service provider, reported financial results for the third quarter ended September 30, 2012. The Company specializes in providing e-commerce solutions and services that facilitate multi-channel B2C (business-to-consumer) and B2B (business-to-business) transactions, enable e-commerce transactions with speed and efficiency, and allow an interactive and engaging customer experience through social media as well as targeted marketing and advertising.
Financial Results
Service Revenues were $1,424,985 and $263,537 for the three months ended September 30, 2012 and 2011, respectively, and $3,196,924 and $263,537 for the nine months ended September 30, 2012 and 2011, respectively. Service Revenues were the result of increased revenues generated from hosting e-commerce solutions for its current customers. Not recognized in the third quarter service revenues were $250,000 of deferred license fees that were received in connection with the partnership agreement with CITIC. Those deferred license fees will be recognized in the fourth quarter 2012.
Operating expenses were $301,926 and $565,121 for the three months ended September 30, 2012 and 2011, respectively, and $1,052,770 and $940,340 for the nine months ended September 30, 2012 and 2011, respectively. The decrease was due to a decrease in stock based compensation.
Net loss was $638,941 and $641,619 for the three months ended September 30, 2012 and 2011, respectively, and $973,991 and $1,032,612 for the nine months ended September 30, 2012 and 2011, respectively. The decrease was due to recognizing revenue from its customers.
Third Quarter Highlights
The Company entered into a strategic partnership agreement with a division of China International Trust and Investment Corporation (CITIC). CITIC will utilize the Company's software technology and catalog management system to develop and expand its evolving Business-to-Business ("B2B") trading platform. CITIC is a large state-owned multinational conglomerate of the People's Republic of China, established in 1979. It is one of the largest diversified conglomerates in Asia with a balanced development of both financial and non-financial businesses across forty-four subsidiaries. CITIC was enlisted in the Fortune Global 500 for the third consecutive year in 2011, ranking 221st.
The Company received an investment from Ingenium Capital Funds S.A., a European based investment firm that is focused on companies in special situations with strong growth and earnings potential. Ingenium Capital Funds S.A. invested $500,000 in a private placement at a price of $0.15 per share and has an option to invest an additional $300,000 at a price of $0.30 per share.
The Company engaged IRG Limited, a leading boutique financial and strategic advisory firm founded and managed by former senior members of Lehman Brothers' TMT (technology, media and telecommunications) investment banking and Internet research groups in Asia to explore strategic alternatives to accelerate the growth of the company and enhance shareholder value.
"We are pleased that we are tracking well and feel confident that we will be able to achieve our growth targets for 2012," said George Yu, the Company's President and CEO. "We are well capitalized and have made progress in identifying strategic options to accelerate our growth with our financial advisor IRG."
About Sitoa Global Inc.
Sitoa Global provides an easy-to-use and comprehensive platform, the "Focused Social Marketplace" that enables online retailers to deploy a social marketplace e-commerce site. Sitoa's platform allows building marketplaces for online sellers with focused social customer networks to expand their sales channels without the risks of focus dilution, and increased capital and operating costs. Sitoa shares in revenues generated by the site in addition to charging integration and hosting fees. Additional information about Sitoa may be found on its website, http://www.sitoaglobal.com.
Safe Harbor StatementThis release contains certain "forward-looking statements" relating to the business of the Company. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements regarding: the continued growth of the e-commerce segment and the ability of the Company to continue its expansion into that segment; the ability of the Company to attract customers and partners and generate revenues; the ability of the Company to successfully execute its business plan; the business strategy, plans, and objectives of the Company; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions and involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks, and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this news release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume any duty to update these forward-looking statements.
Contact:Investor Relationsinfo@sitoaglobal.com
SOURCE Sitoa Global Inc.
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