FORT LAUDERDALE, Fla., April 4, 2011 (GLOBE NEWSWIRE) -- Upstream Worldwide, Inc. (OTCBB:UPST), a leading cash commerce platform specializing in turning consumers' precious metals and cell phones, reported financial results for the year ended December 31, 2010. Revenue for 2010 was $32,547,898 compared to revenue of $28,998,982 for the year ended December 31, 2009, representing an increase of 12%.
The increase in revenue during the year ended December 31, 2010, as compared to the same period in 2009, was driven by significantly higher volume of media advertising in 2010. However, after increasing in 2009 and into 2010, the Company's Media Efficiency Rate (MER) began to decline in the second quarter of 2010, resulting in revenue declining from $17.3 million during the first quarter of 2010 to $7.8 million during the second quarter of 2010, $4.1 million during the third quarter of 2010, and $3.3 million during the fourth quarter of 2010. Gross profit was relatively consistent, on a percentage basis, at approximately 65% for the years ended December 31, 2010 and 2009.
As the Company witnessed the market for gold and other precious metals changing, it began to diversify by entering the market for direct-from-consumer recycling of consumer electronics, specifically cellular phones. Although 2010 revenue from cellular phones was not material, consumer response has been positive and cellular phone revenue is expected to comprise the majority of the Company's revenue in the first quarter of 2011.
According to Doug Feirstein, Chief Executive Officer of Upstream, "In mid 2010, we began to diversify our business by introducing a service, similar to our precious metals business, for cellular phones as we saw the gold and silver business beginning to retract. Our initial expansion of our cash commerce model into consumer electronics (including mobile phones, PDAs and similar handheld devices) has the potential to grow rapidly. Consumers responded positively to our test combo offer, which combined existing precious metals advertising with cellular phones. In November 2010 we began stand-alone cellular phone advertising. The response has been excellent and in fact we anticipate more than 50% of our revenue for the quarter ending March 31, 2011 will be from cellular phones.
"Further, due to the significant size of these markets, we are continuing to explore all potential options and relationships to most effectively expand our market stance while best serving our customers," continued Feirstein.
"We have a low cost, highly scalable and flexible business model that allows us to quickly and efficiently adapt to entry into new markets, changes in economic conditions, supply and demand levels and other similar factors," stated Upstream's CFO, Daniel Brauser. "We believe that the market for recycling small consumer electronics such as cellular phones, though just emerging, is substantial and that we can achieve significant returns on our media investments if we control our costs. The continued implementation of our business plans has the potential to generate steadily improving results and cash flows in the future."
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 and . 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 revenues from cellular phones, potential 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.
CONTACT: Upstream Worldwide, Inc. 954-915-1550