FOSHAN, China, Jan. 14 /PRNewswire-Asia/ -- MyStarU.com, Inc. (OTC Bulletin Board: MYST; Frankfurt Stock Exchange: TQF), announced today that it has filed a Form 10K with the SEC on Jan 13, 2009 as the annual report for the year ended September 30, 2008.
Net income increased by $8,770,402:
The Company generated net income of $3,780,415 for the year ended September 30, 2008 as compared to a loss of $4,989,997 for the year ended September 30, 2007 as a result of the successful decrease in operating costs and also the substantial growth of the online membership services and investments in entertainment arts business segments.
Revenues increased by $7,616,831:
Revenues were $29,171,642 for the year ended September 30, 2008 compared to $21,554,811 for the year ended September 30, 2007. The increase of $7,616,831 is due primarily to the Company's growth in its online membership services business segment and investments in its entertainment art productions business segment. For the years ended September 30, 2008 and 2007, the Company recorded revenues of approximately $7.7 million and $4.3 million, respectively, for its online membership services business segment, all of which was derived from the http://www.subaye.com website. For the years ended September 30, 2008 and 2007, the Company recorded approximately $6.9 million and $3.9 million in revenues, respectively, for the Company's investments in its entertainment arts business segment. The Company's licensing and outright sales of its entertainment assets, namely copyrights, continued according to management's plans. During the year ended September 30, 2008, MYST sold copyrights to 1 motion picture for approximately $860,000, 1 copyright for television rights for approximately $308,000 and copyrights to 12 internet broadcasts for $1.7 million, respectively. Additionally, during the year ended September 30, 2008, a total of $1.6 million and $1.34 million was recorded for "master franchise licenses" sales and "end user licenses," respectively. Additionally, the Company recorded revenue from internet broadcast "playing fees" and related revenue sharing arrangements of approximately $660,000 for the year ended September 30, 2008. During the year ended September 30, 2007, MYST sold copyrights to 2 motion pictures for $2.2 million. Additionally, during the year ended September 30, 2007, a total of $800,000 was recorded for "master franchise licenses" sales. The revenues for the importing and exporting business segment continued to steadily increase and were approximately $12.5 million in 2008 versus revenues of approximately $11.4 million in 2007. The Company expects the importing and exporting business to expand significantly in the coming years due to current contracts and various significant potential contracts the Company is expecting to negotiate in the near future. The Company's revenues for the years ended September 30, 2008 and 2007 from the software sales business segment were approximately $1.8 million and $1.9 million, respectively. The Company is committed to its software sales business segment and is in the process of formalizing new business plans which will utilize the Company's software platforms to enhance the user's experiences on the Company's various websites.
Costs of Sales increased by $2,000,428:
Costs of sales were $20,219,600 for the year ended September 30, 2008 compared to $18,219,172 for the year ended September 30, 2007. Amortization of the Company's websites, which was included in costs of sales for the years ended September 30, 2008 and 2007, totaled $2.7 million and $1.9 million, respectively. Amortization of the Company's computer software, which was included in costs of sales for the years ended September 30, 2008 and 2007, totaled $1.7 million and $0, respectively. Amortization of the Company's copyrights, which was included in costs of sales for the years ended September 30, 2008 and 2007, totaled $50,045 and $995,875, respectively. The costs of sales recorded upon the sale of copyright licenses for the years ended September 30, 2008 and 2007 totaled approximately $2.9 million and approximately $922,000, respectively. The costs of sales for the importing and exporting business segment continued to steadily increase as revenues increased and were approximately $12.2 million in 2008 versus approximately $11.2 million in 2007.
Operating expenses decreased by $3,874,816:
For the year ended September 30, 2008, we incurred operating expenses of $3,971,996 as compared to $7,846,812 for the year ended September 30, 2007. Stock-based compensation expense decreased $1,816,675 for the years ended September 30, 2008 versus September 30, 2007 due to a decrease in its 2008 issuances of stock to consultants and employees versus 2007, when much of the Company's stock based compensation was incurred. Selling, general and administrative expenses decreased from approximately $2.0 million for the year ended September 30, 2007 to approximately $923,000 for the year ended September 30, 2008. The Company cut costs aggressively during the year ended September 30, 2008 and was able to take advantage of a contracted labor pool which was much less expensive than the Company's previous employee base. The Company recorded an impairment loss on the value of its copyrights during the years ended September 30, 2008 and 2007 of $0 and 1.3 million, respectively.
Other income decreased by $62,984:
Other income was $494 for year ended September 30, 2008 compared to $63,478 for the year ended September 30, 2007. For the year ended September 30, 2007 the Company had a significant gain on the disposal of motor vehicles. For the year ended September 30, 2008, the Company had a lower cash balances throughout the year and earned only a minimal amount of interest income.
The following table sets forth selected information concerning the Company's objectives for consolidated operating results for its current fiscal year ending September 30, 2009. These objectives are based on the Company's historical operating performance, current trends and other assumptions that the Company believes are reasonable at this time.
2009 Objective Range
Revenue (in millions) $40 to $60
Net Income (in millions) $7 to $10
Income from continuing operations
per share - diluted $0.04 to $0.06
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 Limited (http://www.MyStarU.com , http://www.skyestar.com , http://www.icurls.com ) and majority owned subsidiary Subaye.com, Inc. (http://www.subaye.com , http://www.x381.com , http://www.goongreen.org ).
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.
