Despite a 31% increase in revenue up to $26.2m and a 38% rise in gross profit up to $16.8m, the online payments provider ceased to process online gambling transactions originating from the US and recorded a non-cash impairment charge of $78.4m, which added to exceptional provisions of $4.0m, foreign exchange loss of $0.1m and stock-based compensation of $0.4m, determined a third quarter loss of $72.4m, compared to a net profit of $2.9m for the same period last year.
Upon the enactment of the UIGE Act of 2006, FireOne has embarked upon a restructuring of its operations and cost base. Restructuring costs are currently estimated to be $1.5m and will be recorded in the fourth quarter.
The company announced that it will continue to offer its multi-currency credit and debit card and FirePay electronic wallet processing to the online gambling industry originating from non-US consumers and not prohibited by the UIGE Act.
Elsewhere, ESI Entertainment Systems, parent company of Citadel Commerce, appointed Mark Bains as its Chief Financial Officer. The company traded on the Toronto Stock Exchange continues to work with its auditors to complete the second quarter financial statements which were supposed to be filed before October 27. ESI now expects to file the financial statements on or before November 14.
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