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Net Element Announces Third Quarter 2013 Financial Results and Operational Update

Net Element Announces Third Quarter 2013 Financial Results and Operational
Update

Net Revenues Up Significantly Over Last Year, First Full Quarter After Unified
Payments Acquisition

MIAMI, Nov. 15, 2013 (GLOBE NEWSWIRE) -- Net Element International
(Nasdaq:NETE) ("Net Element" or the "Company"), a technology-driven group
specializing in mobile payments and value-added transactional services in
emerging countries and in the United States of America, today announced
financial results for its third-quarter ending September 30, 2013. Net Element
International reported third-quarter net revenues of $6,520,788, which
represents a significant increase above the net revenues of $170,691 for the
same period in the prior year. For the nine months ended September 30, 2013,
Net Element reported $12,996,538 in net revenues, which represents a
significant increase above the net revenues of $222,207 for the same period in
the prior year. This quarter represents the first full quarter of revenues
from the Unified Payments acquisition, which was completed on April 16, 2013.

During the quarter ended September 30, 2013, the Company divested the majority
of its ownership interests in certain online sports and entertainment
businesses in order to focus on technologies and value-added services that
enable mobile payments and commerce in emerging countries and the United
States of America. The Company retained a 10% ownership interest in the
divested businesses and agreed to invest $1,259,000 into these businesses over
the next twelve months.For the three and nine months ended September 30,
2013, we reported a loss from discontinued operations of $694,139 and
$1,339,646 respectively.The loss from operating these divested businesses for
the three and nine months ended September 30, 2013 is included in the total
loss above.For the three and nine months ended September 30, 2013, Net
Element had losses from operations of discontinued entities of$372,496 and
$1,018,003, respectively.The divestiture will result in approximately
$1,400,000 of annualized savings for operating losses associated with the
divested businesses.

Net lossfrom continuing operationsfor the quarter ended September 30, 2013
was $3,441,475, or $(0.11) per share, as compared to a loss from continuing
operations of $1,165,816 or $(0.05) per share for the three months ended
September 30, 2012. The loss from continuing operations for the quarter ended
September 30, 2013 includes $796,985 of depreciation and amortization
expenses, a $537,230 provision for loan losses and $1,053,275 in interest and
other expenses.The company had $3,925,765 of cash on hand at September 30,
2013 and was able to finance its operations from its cash flow without
diluting existing shareholders.

Additional information regarding Net Element's results of operations for its
third-quarter ended September 30, 2013 may be found in Net Element's quarterly
report on Form 10-Q, which was filed with the Security and Exchange Commission
(SEC) on November 14, 2013 and may be obtained from the SEC's Internet website
at http://www.sec.gov.

Other highlights for the quarter include:

  *In September, Net Element completed divestiture of its non-core sports and
    entertainment assets;
  *In August, the Company's subsidiary Aptito announced integration with
    USAePay;
  *In August, Aptito announced integration with TSYS;
  *In July, Net Element was added to Russell 3000 Index

"Actions taken in the third quarter are key enablers in our pursuit of growing
revenues and sustained profitability", said Oleg Firer, CEO of Net
Element.Adding, "By divesting our entertainment companies we no longer have
the research & development costs associated with these businesses.Moreover,
by establishing key strategic partnerships and integrations within our core
competency divisions we expand our capabilities for innovation and opportunity
for revenue growth."

About Net Element International (Nasdaq:NETE)

Net Element International (Nasdaq:NETE) is a global technology-driven group
specializing in mobile payments and value-added transactional services.The
company owns and operates a global mobile payments and transaction processing
provider, TOT Group.TOT Group companies include Unified Payments, recognized
by Inc. Magazine as the #1 Fastest Growing Private Company in America in 2012,
Aptito, a next generation cloud-based point of sale payments platform, and TOT
Money, which has a leading position in Russia and has been ranked as the #1
SMS content provider by Beeline, Russia's second largest telecommunications
operator.Together with its subsidiaries, Net Element International enables
ecommerce and adds value to mobile commerce environments.Its global
development centers and high-level business relationships in the United
States, Russia and Commonwealth of Independent States strategically position
the company for continued growth.The company has U.S. headquarters in Miami
and international headquarters in Moscow.More information is available at
www.netelement.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Any statements contained in this
press release that are not statements of historical fact may be deemed
forward-looking statements. Words such as "will," "may," "could," "should,"
"expect," "expected," "plans," "intend," "anticipate," "believe," "estimate,"
"predict," "potential," and similar expressions are intended to identify such
forward-looking statements. These forward-looking statements include, without
limitation, the extent that being added to the Russell Indexes will elevate
Net Element International's profile in the investor community or bring its
strategy and shareholder value to the attention of a broader audience; whether
being added to the Russell Indexes will add liquidity to Net Element
International's stock; whether being added to the Russell Indexes will attract
index funds; and whether Net Element International or its business continues
to grow; whether there will be ongoing annualized savings for losses
previously associated with the referenced divested businesses All
forward-looking statements involve significant risks and uncertainties that
could cause actual results to differ materially from those expressed or
implied in the forward-looking statements, many of which are generally outside
the control of Net Element International and are difficult to predict.
Examples of such risks and uncertainties include, but are not limited to: (i)
Net Element International's ability (or inability) to obtain additional
financing in sufficient amounts or on acceptable terms when needed; (ii) Net
Element International's ability to maintain existing, and secure additional,
contracts with users of its payment processing services; (iii) Net Element
International's ability to successfully expand in existing markets and enter
new markets; (iv) Net Element International's ability to successfully manage
and integrate any acquisitions of businesses, solutions or technologies; (v)
unanticipated operating costs, transaction costs and actual or contingent
liabilities; (vi) the ability to attract and retain qualified employees and
key personnel; (vii) adverse effects of increased competition on Net Element
International's business; (viii) changes in government licensing and
regulation that may adversely affect Net Element International's business;
(ix) the risk that changes in consumer behavior could adversely affect Net
Element International's business; (x) Net Element International's ability to
protect its intellectual property; and (xi) local, industry and general
business and economic conditions. Additional factors that could cause actual
results to differ materially from those expressed or implied in the
forward-looking statements can be found in the most recent annual report on
Form 10-K and the subsequently filed quarterly reports on Form 10-Q and
current reports on Form 8-K filed by Net Element International with the
Securities and Exchange Commission. Net Element International anticipates that
subsequent events and developments may cause its plans, intentions and
expectations to change. Net Element International assumes no obligation, and
it specifically disclaims any intention or obligation, to update any
forward-looking statements, whether as a result of new information, future
events or otherwise, except as expressly required by law.

                                                              
NET ELEMENT INTERNATIONAL
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE
LOSS
                                                              
                         Three months ended       Nine months ended
                         September 30,             September 30,
                         2013         2012         2013          2012 (As
                                                              Restated)
                                                              
Net revenues              $6,520,788   $170,691     12,996,538    222,207
                                                              
Costs and expenses:                                            
Cost of revenues          4,646,245    26,767       9,036,826     66,791
General and
administrative (includes
$75,000 and $426,838 and
$225,000 and $3,820,206   2,928,528    1,617,052    9,193,026     7,005,657
of non cash compensation
for quarters and nine
months ended Sep 30, 2013
and 2012, respectively)
Provision for loan losses 537,230      --           6,736,302     --
Goodwill impairment       --           --           11,200,000    --
Depreciation and          796,985      53,937       1,449,659     134,307
amortization
Total costs and operating 8,908,988    1,697,756    37,615,813    7,206,755
expenses
Loss from operations      (2,388,200)  (1,527,065)  (24,619,275)  (6,984,548)
Interest (expense)        (973,256)    412,266      (2,043,353)   314,883
income, net
Other expense             (80,019)     (51,017)     (168,509)     (462,242)
Loss from continuing      (3,441,475)  (1,165,816)  (26,831,137)  (7,131,907)
operations
Net loss attributable to
the noncontrolling        266,001      45,990       835,642       118,739
interest
Discontinued operations:                                       
Loss from operations of   (372,496)    (694,478)    (1,018,003)   (1,898,397)
discontinued entities
Loss on disposition of
assets pertaining to      (321,643)    --           (321,643)     --
discontinued operations
Total discontinued        (694,139)    (694,478)    (1,339,646)   (1,898,397)
operations
Net loss                  (3,869,613)  (1,814,304)  (27,335,141)  (8,911,565)
Foreign currency          162,997      7,057        (101,761)     (1,819)
translation gain (loss)
Comprehensive loss        $(3,706,616) $(1,807,247) $(27,436,902) $(8,913,384)
                                                              
Loss per share – basic
and diluted continuing    $(0.11)      $(0.05)      $(0.92)       $(0.37)
operations
                                                              
Loss per share – basic
and diluted discontinued  $(0.02)      $(0.04)      $(0.05)       $(0.10)
operations
Total Net loss per share  (0.13)       (0.09)       (0.97)        (0.47)
                                                              
Weighted average number
of common shares          28,163,337   19,314,379   28,173,573    19,083,270
outstanding - basic and
diluted

CONTACT: MEDIA CONTACT:
         Dan Bruck
         dbruck@netelement.com
         (305) 507-8808
         www.netelement.com