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CrowdGather, Inc. Announces Record Second Quarter Fiscal 2011 Results

^{Published on 2010-12-01 09:00:24 - Market Wire}
 

WOODLAND HILLS, Calif.--([ BUSINESS WIRE ])--One of the leading networks of forum communities on the Internet, CrowdGather (OTCBB:CRWG), today announced financial results for its fiscal 2011 second quarter ended October 31, 2010.

"We are excited to post our strongest quarterly revenue results yet"

Highlights for the Quarter

• CrowdGather posted a 697% increase in revenues from last yeara™s fiscal second quarter.
• Assets increased 895% from $1,152,859 in the second quarter of fiscal 2010 to $11,470,486 in the second quarter of fiscal 2011.

The Company reported record revenues of $462,925 for the second quarter of fiscal 2011, an increase of 697% from the $58,061 reported for the second quarter of fiscal 2010. This increase was primarily attributable to the revenues generated from our current fiscal year acquisitions. The net loss for the second quarter of fiscal 2011 increased 51% to $711,272, or $(0.02) per diluted share, compared to a net loss of $471,082, or $(0.02) per diluted share, for the second quarter of fiscal 2010 and was primarily related to a $301,833 increase in our non-cash charges for stock-based compensation from $161,000 to $462,833 in each of the comparable quarters for fiscal years 2010 and 2011, respectively.

For the six months ended October 31, 2010, the Companya™s operating expenses increased 54% to $1,813,721, including $726,100 of non-cash charges for stock-based compensation as compared to total operating expenses of $1,181,303 for the six months ended on October 31, 2009, including $440,160 of non-cash charges for stock-based compensation.

Total assets increased 326% to $11,470,486 million as of October 31, 2010, as compared to total assets of $2,695,631 for the fiscal year ended April 30, 2010. For the current period end, total assets primarily consisted of cash of $1,297,430, and goodwill and intangible assets of $9,990,913 represented by domain names and other intellectual property acquired.

aWe are excited to post our strongest quarterly revenue results yet,a said Sanjay Sabnani, CrowdGathera™s Chairman and CEO. aWe believe the Companya™s balance sheet is also the healthiest it has ever been with significant positive shareholders equity. Our next step will be to apply for listing on a senior US stock exchange.a

About CrowdGather, Inc.

With its growing portfolio of special interest forums and enthusiast message board communities, CrowdGather ([ www.crowdgather.com ]) has created a centralized network to benefit forum members, forum owners and forum advertisers. CrowdGather provides a highly interactive and informational social network for members, a management and revenue-sharing resource for third-party forum owners, and a largely untapped advertising network for marketers worldwide.

This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and the Companya™s growth and business strategy.Words such as aexpects,a awill,a aintends,a aplans,a abelieves,a aanticipates,a ahopes,a aestimates,a and variations on such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements.Factors that could cause actual results to differ materially include, but are not limited to, changes in the Companya™s business; competitive factors in the market(s) in which the Company operates; risks associated with operations outside the United States; and other factors listed from time to time in the Companya™s filings with the Securities and Exchange Commission. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Companya™s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.