FORT LAUDERDALE, Fla., May 17, 2011 (GLOBE NEWSWIRE) -- Upstream Worldwide, Inc. (OTCBB:UPST), a leading cash commerce platform specializing in purchasing consumers' goods in exchange for cash, reported financial results for the first quarter ended March 31, 2011.
Revenue for the first quarter 2011 was $3,721,711 compared to revenue of $17,272,133 for the first quarter 2010. The decrease in revenue during the first quarter 2011, as compared to the same period in 2010, was the direct result of the Company's shift away from the precious metal recycling business to focus on the recycling of cellular phones. The level of revenue attained during the first quarter of 2011 demonstrates the viability of the Company's business plan, and the decline in revenue of precious metals during 2010 underscores the importance of the recent diversification into cellular phones and the implementation of the cash commerce business model.
Revenue generated from cellular phones during 2010 was not material to overall revenue for that fiscal year; however cell phone revenue has increased since its introduction in the fourth quarter 2010, and comprised over 50% of the $3.7 million in revenue recognized during the first quarter of 2011.
Management expects the percentage of revenue generated from gold to continue to decline as revenue from cellular phones continues to grow and the Company expands its offerings into other small consumer electronic items.
According to Doug Feirstein, Chief Executive Officer of Upstream, "Our initial expansion into direct-from-consumer reverse logistics recycling of consumer electronics including mobile phones, PDA's and similar handheld consumer electronic devices has been a success. We are seeing consumers favorably responding to our cellular phone marketing and believe we have developed a sustainable business model moving forward. The response has been positive and more than 50% of our revenue for the quarter ending March 31, 2011 was derived from the recycling of cellular phones."
CFO and Co-Founder Daniel Brauser said, "We believe that the market for recycling small consumer electronics such as cellular phones, though just emerging, is substantial and we have seen significant growth with consumer transactions on our marketing investments. The continued implementation of our business plan has the potential to generate steadily improving results and cash flows in the future. We are continuing to explore all potential options and relationships to most effectively expand our market stance while best serving our customers."
About Upstream Worldwide, Inc.
Upstream is a leading cash commerce platform, specializing in purchasing goods from consumers in exchange for cash. Upstream's direct response marketing model drives significant traffic and conversions from its consumer-facing websites, including www.uSell.com and www.Dollars4Gold.ca. The company focuses on delivering 100% happiness to its customers through fast online interactions and high-touch customer service, creating a dependable, secure, convenient way for customers to get cash fast. And who couldn't use extra cash?
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements including expected revenue growth from cellular phones and small consumer electronic items, our beliefs regarding developing a sustainable business model moving forward, potential market and growth of the consumer electronics business and the potential to generate improved cash flows in the future. Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects" and similar references to future periods. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you therefore against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements include competition, our relationships with our partners, and the continued willingness of people to use us to recycle their cell phones. Further information on our risk factors is contained in our filings with the Securities and Exchange Commission, including the Form 10-K filed for the year ended December 31, 2010. Any forward-looking statement made by us in this press release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.