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): November 4, 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 November 4, 2004, the Company issued the following press release:
Contact:
Clive Kabatznik
Silverstar Holdings
(561) 479-0040
clive@silverstarholdings.com
Silverstar Holdings Reports Profit of $0.01 per Share
for the Quarter ended September 30, 2004
Excluding Currency Adjustments and a One-Time Bad Debt Recovery,
Profits More Than Double That of Previous Year
BOCA RATON, FL- (MARKET WIRE)- November 4, 2004 - Silverstar Holdings, Ltd.
(NasdaqSC:SSTR) today reported a profit of $0.01 per share for the quarter ended
September 30, 2004.
The Company generated revenues of approximately $610,000 for the quarter with a
profit of approximately $125,000 or $0.01 per share. The Company's Fantasy
Sports game business generated profits of approximately $0.03 per share.
Non-cash foreign currency losses for the quarter were approximately $229,000.
Interest income for the quarter was approximately $157,000. In addition, the
Company received a one-time bad debt recovery of approximately $165,000 during
the quarter.
For the comparable period in the previous year, the Company reported a profit of
approximately $435,000 or $0.05 per share, that included a non-cash foreign
currency gain of approximately $345,000 and interest income of approximately
$178,000.
Clive Kabatznik, Chief Executive Officer of Silverstar Holdings, said: "The
profit from continuing operations for the first quarter of fiscal 2005 reflects
the continued improvement in our operating businesses which was offset by a
decrease in the value of our South African Rand-based assets. We are
particularly pleased with the performance of our Fantasy games business. We
remain optimistic that our ongoing efforts to increase profitability by focusing
on the efficient operation of subscription-based Internet game businesses will
provide further growth in shareholder value."
Mr. Kabatznik continued, "Our investment in Magnolia Broadband, continues to
hold great promise as evidenced by their recent announcement of a broad
strategic alliance with SK Telecom." Mr. Kabatznik concluded, "We continue to
actively 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 leading 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
Quarter Ended Quarter Ended
September 30, 2004 September 30, 2003
------------------ ------------------
Revenues $610,335 $886,895
Currency Gain (Loss) $(229,213) $344,851
Interest Income $157,404 $178,382
One-Time Bad Debt Recovery $165,155 -
Net Income $125,283 $434,529
Net Income Per Share $0.01 $0.05
Weighted Average Number of Shares
Outstanding 8,695,513 8,482,469
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: November 5, 2004
SILVERSTAR HOLDINGS, LTD.
By: /s/ Clive Kabatznik
-----------------------------
Name: Clive Kabatznik
Title: CEO