UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): SEPTEMBER 23, 2004
SILVERSTAR HOLDINGS, LTD.
(Exact name of registrant as specified in its charter)
BERMUDA 0-27494 N/A
(State or other jurisdiction of (Commission File Number) (IRS Employer
incorporation) Identification No.)
CLARENDON HOUSE, CHURCH STREET, HAMILTON, HM CX, BERMUDA
(Address of Principal Executive Offices with Zip Code)
Registrant's telephone number, including area code: (441) 295-1422
NOT APPLICABLE
(Former Name or Former Address, if Changed Since Last Report)
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On September 23, 2004, the Company issued the following press release:
CONTACT:
CLIVE KABATZNIK
SILVERSTAR HOLDINGS
(561) 479-0040
CLIVE@SILVERSTARHOLDINGS.COM
SILVERSTAR HOLDINGS REPORTS RESULTS FOR
YEAR ENDED JUNE 30, 2004
PROFIT OF $0.12 PER SHARE VERSUS $0.01 IN 2003
REFLECTS IMPROVEMENT IN OPERATING RESULTS
BOCA RATON, FL- September 23, 2004 - Silverstar Holdings, Ltd. (Nasdaq:SSTR)
today reported net income of $0.12 per share for the fiscal year ended June 30,
2004.
The Company generated revenues of $2,367,463 for the year with net income of
$1,002,523 or $0.12 per share. Included in net income was a non-cash foreign
currency gain related to its South African assets of $1,287,291. Interest income
for the year was $603,352.
For fiscal 2003, the Company earned net income of $69,348 or $0.01 per share on
revenues of $3,141,448. Included in net income was a foreign currency gain of
$1,763,115. Interest income for the year was $638,011.
Clive Kabatznik, Chief Executive Officer of Silverstar Holdings, said: "The net
income for fiscal 2004 reflects not only the increase in the value of our
remaining South African assets, but also reflects a return to profitability for
our operating subsidiary, Fantasy Sports, Inc."
"During fiscal 2004, we focused on operational profitability through the
reduction of expenses and the jettisoning of unprofitable revenue lines. As a
result, Fantasy Sports achieved profitability for the fiscal year, and we
anticipate this subsidiary to generate improved operating profits over the next
twelve months."
"Magnolia Broadband continues to make excellent progress towards producing and
selling innovative wireless chip sets for the mobile cell phone market.
Magnolia's proposed product offerings have generated extremely positive industry
feedback, as well as financial backing from major venture capitalists. We are
optimistic that this investment will generate value for Silverstar in the medium
term. "
Mr. Kabatznik concluded, "Over the past year, we have evaluated a number of
strategic options to enhance shareholder value. We continue to seek appropriate
opportunities to enhance our revenues and income, both organically and through
acquisitions."
About Silverstar Holdings
Silverstar Holdings Ltd. is a publicly traded company, focusing on acquiring
controlling positions in high growth subscription based businesses that stand to
benefit from the economies of scale generated by Internet and other technology
related platforms. It currently owns Fantasy Sports, Inc., a dominant provider
of fee based NASCAR related and other fantasy sports games, as well as a stake
in Magnolia Broadband, a fab-less semiconductor company and innovator of radio
frequency (RF) solutions for the cellular industry.
The statements which are not historical facts contained in this press release
are forward looking statements that involve certain risks and uncertainties,
including but not limited to risks associated with the uncertainty of future
financial results, additional financing requirements, development of new
products, regulatory approval processes, the impact of competitive products or
pricing, technological changes, the effect of economic conditions and other
uncertainties detailed in the company's filings with the Securities and Exchange
Commission.
# # #
SILVERSTAR HOLDINGS, LTD.
CONSOLIDATED STATEMENT OF EARNINGS
- --------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED
JUNE 30, 2004 JUNE 30, 2003
Revenues $2,367,463 $3,141,448
Income from
Continuing operations $1,030,105 $1,069,049
Discontinued Operations - $(736,947)
Loss on disposition of
Discontinued operations $(27,582) $(262,754)
Net Income $1,002,523 $69,348
Net Income Per Share:
Continuing operations $0.12 $0.12
Discontinued operations - $(0.11)
Net income $0.12 $0.01
Average Number of Shares Outstanding 8,575,579 8,704,620
SIGNATURE
---------
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: September 27, 2004
SILVERSTAR HOLDINGS, LTD.
By: /s/ Clive Kabatznik
--------------------------------
Name: Clive Kabatznik
Title: Chief Executive Officer