PayStar Corporation, the nation’s leader in providing content-based Internet Kiosks, Cashless ATM devices, Prepaid Telecom Services and Wireless Banking, announces the recasting of Q3 estimated revenues to lower than expected. This recast is a result of the recent economic downturns and a reduction in Cashless Teller Machine purchase orders from its U.S. Cash Exchange Business Unit.
Recently a major national distributor has notified U.S. Cash Exchange that its orders for third quarter will be significantly lower than originally forecast due to one of its major dealers going out of business. A Summit Technologies (national distributor) spokesperson said it is currently in negotiations with two new replacement dealers and orders for Q4 should return to normal.
PayStar is pleased to announce that plans are under way to lower Q3 short-term debt by approximately $3.5 million, which will significantly improve the balance sheet. PayStar’s recent reorganization has resulted in a 15% reduction in force. This will result in what management believes will continue to improve the bottom line and accomplish year-end goals.
PayStar Corporation, a premier global distributor of telephony and financial services, provides its customers with an array of enabling devices. PayStar is comprised of three fully integrated divisions: Commercial Telephony Switch Services, Consumer Internet and Telephony Products including prepaid cards, and Consumer Services providing service and maintenance of Cashless ATMs (CTMs), payphones and Internet enabled kiosks. PayStar is the location services provider (LSP) to retail merchants and is considered a “carrier’s carrier” for wholesale telecom services worldwide. Success is driven by internal sales and mergers and acquisitions. PayStar’s global strategy centers on expanding its network of thousands of merchant locations that utilize its enabling devices. This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of known and unknown risks and uncertainties that may cause the company’s actual results or outcome to be materially different from those anticipated and discussed herein. These include the company’s historic lack of profitability, end user customer acceptance and actual demand, which may differ significantly from expectations, the need for the company to manage its growth, the need to raise funds for operations and other risks with the regulation of the telecommunications industry. For more information, call PayStar at 877/769-7827 or visit their website at [http:/www.paystar.com].