Dreams, Inc., the owner of FansEdge, reported revenues for the third quarter rose 5.7% to $15.2 million, from $14.4 million in the same period last year. EBITDA for the quarter improved about 300% to a loss of $429,000, versus a loss of $1.7 million for the same period last year.

Net losses for the quarter improved 78% to a loss of $786,000, versus a loss of $1.4 million for the same period last year.

Dreams Inc. also owns Field of Dreams, Green Organization, Malcom Farley Art, Mounted Memories, Pro Sports Memorabilia, Schwartz Sports, Stars Lie 365, and Star Struck.

Revenues for the nine months decreased 9% to $42.3 million, from $46.5 million in the same period last year. EBITDA for the nine months improved 20% to a loss of $2.5 million, versus a loss of $3.0 million in the same period last year. Net losses for the nine months were constant with a $2.8 million loss for this year, versus a $2.7 million loss for the same period last year.

“The themes of our quarterly and nine month results were our cash flow improvements, our Internet revenue producing opportunities and our ability to reign in operating expenses,” stated, Ross Tannenbaum, Dreams President & CEO.

Cash Flow

“In fact, both net cash used in operating activities and net cash provided by financing activities were negligible for the quarter with only $106,000 and $16,000, respectively. For the nine months ended September 30, 2009, these two important components of our consolidated statements of cash flows have been slashed by about $10.0 million each, versus the comparable period last year. Also, net cash used in investing activities is down $1.0 million for the first nine-months of the year, versus the same period last year.

Revenues

“We were down 9% of consolidated revenues for the nine months ended September 30, 2009, versus the comparable period last year, although we have begun to grow our revenues (5.7% for this most recent quarter) and believe we will continue to do so for the remainder of the year. This is due to our continued Internet growth through our on-line properties. The combination of organic growth with our main site, www.Fansedge.com, coupled with an ever expanding web syndication portfolio, has the Company positioned to deliver a strong holiday quarter. With these anticipated results, we expect to return to profitability in 2009. We are already seeing meaningful contributions from our most recent partnerships with the Philadelphia Eagles, JC Penney and Walmart. In fact, Internet sales have accounted for 57.6% of our consolidated revenues for the first nine months of the year, and 62.9% for the most recent quarter. We expect this trend will continue.

“We have been proactive in instituting numerous corporate savings initiatives that have become the catalyst for improved economics. Hence, we are seeing considerable improvements in our *EBITDA results. *EBITDA for the quarter improved about 300% to a loss of $429,000, versus a loss of $1.7 million for the same period last year. The quarterly results were impacted by a $109,000 non-cash operating expense associated with the granting of stock options to employees, officers and directors Otherwise, our *EBITDA loss would have been a loss of $320,000. *EBITDA for the past nine months improved 20% to a loss of $2.5 million, versus a loss of $3.0 million in the same period last year. The ability to eradicate non-holiday quarter losses is a company-wide objective and we are clearly moving towards that goal.

“New web syndication signings were dominant achievements during the third quarter of 2009. The Company announced its new partnerships with NCAA Football.com, JC Penney, the Washington Wizards, WalMart, and the Baseball Hall of Fame. We are uniquely positioned to grow our Internet presence in the sports licensed products industry. This is the fastest growing area of the Company and will remain its primary focus,” concluded Tannenbaum.