EXHIBIT 99.1
SILVERSTAR HOLDINGS REPORTS RESULTS FOR PERIOD ENDED MARCH 31, 2005
BOCA RATON, FL -- (MARKET WIRE) - May 6, 2005 -- Silverstar Holdings, Ltd.
(NASDAQ: SSTR) today reported net loss of $0.07 per share for the quarter ended
March 31, 2005 and net income of $0.03 per share for the nine-month period.
The Company generated revenues of $250,000 for the quarter with an operating
loss of $441,000 or $0.05 per share. For the comparable period in 2004, revenues
were $358,000 with operating loss of $388,000 or $0.04 per share. Revenues
decreased primarily as a result of fewer races being held in 2005 versus the
comparable period in 2004, thereby shifting the timing for the recognition of
revenues and operating profit. Non-cash foreign currency losses accounted for
$319,000 for the quarter compared to a gain of $365,000 in 2004. Interest income
was $125,000 for the current quarter compared to $147,000 in 2004. Due to the
fluctuation in foreign currency gains and losses, net losses for the current
quarter were $647,000 or $0.07 per share compared to a profit of $89,000 or
$0.01 per share in 2004.
For the nine-month period, the Company generated revenues of $1,365,000 with net
income of $266,000 or $0.03 per share. For the comparable period in 2004,
revenues were $1,833,000 with net income of $870,000. The decrease is the result
of the discontinuation of the non-profitable merchandise division in 2004, fewer
races held in 2005 thereby shifting the timing for the recognition of revenues
and operating profit, as well as a decrease in subscribers. Non-cash foreign
currency gains accounted for $222,000 for the current period compared to
$1,184,000 in 2004. Interest income was $447,000 for the current period compared
to $478,000 in 2004.
Due primarily to the fluctuations in the Company's unrealized foreign currency
gain, there was a net loss in the three-month and a decrease in net income in
the nine-month period ending March 31, 2005 as compared to the same periods in
2004. The Company anticipates that these fluctuations will moderate due to
reduced cash balances held in South African Rand and its acquisition of
financial instruments to more effectively manage its remaining currency
exposure.
Clive Kabatznik, Chief Executive Officer of Silverstar Holdings said, "The
results for the period ending March 31, 2005 reflect solely our Fantasy Sports
operations. Historically, the March quarter is seasonally the weakest for this
business. However, year to date Fantasy Sports continues to improve its
operating profitability." Mr. Kabatznik continued, "Our acquisition of Strategy
First, which was completed on April 21st, 2005, will result in significant
increases in revenues in the upcoming quarters. We believe that as we integrate
Strategy First's operations and work to enhance its business, it will contribute
to increased shareholder value."
"Silverstar has in excess of $9 million in financial assets, of which
approximately $5 million is cash, with no appreciable debt at the corporate
level. We are moving forward on our strategic plan to become an owner and
operator of a broad range of fee-based electronic game companies. Our strong
balance sheet provides us a platform to continue to seek additional growth
opportunities both organically and through acquisition to further implement our
strategic plan, " Mr. Kabatznik concluded.
ABOUT SILVERSTAR HOLDINGS
Silverstar Holdings Ltd. is a publicly traded company, focusing on acquiring
controlling positions in high growth fee-based electronic game 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, Strategy
First Inc., a leading developer and worldwide publisher of entertainment
software for the PC, as well as a stake in Magnolia Broadband, a fab-less
semiconductor company and innovator of radio frequency (RF) solutions for the
cellular industry. www.silverstarholdings.com
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
MARCH 31, 2005 MARCH 31, 2004
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Revenues $ 249,851 $ 357,545
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Currency Gain (loss) ($318,702) $ 365,268
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Interest Income $ 124,699 $ 146,824
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Net Income (loss) ($646,849) $ 88,595
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Net Income (loss) Per Share ($0.07) $ 0.01
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Weighted Average Number of Shares
Outstanding 8,703,081 8,630,513
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SILVERSTAR HOLDINGS, LTD.
CONSOLIDATED STATEMENT OF EARNINGS
NINE MONTHS ENDED NINE MONTHS ENDED
MARCH 31, 2005 MARCH 31, 2004
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Revenues $1,365,486 $1,833,236
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Currency Gain $ 221,628 $1,184,174
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Interest Income $ 447,496 $ 478,028
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One-Time Bad Debt Recovery $ 160,318 -
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Net Income $ 265,641 $ 870,204
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Net Income Per Share $ 0.03 $ 0.10
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Weighted Average Number of Shares
Outstanding 8,698,036 8,547,506
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