MortgageBrokers.com saw revenue in the first quarter of fiscal 2007 increase 245% to $ 1.2 million from $344,758 in the first quarter of fiscal 2006.

Total operating expenses in the first quarter of fiscal 2007 increased 152% to $ 2.9 million from $1.2 million in Q1 2006. Total operating expenses in Q1 included $1.4 million of stock based compensation.

Loss from operations in Q1 increased to $ 1.7 million from $813,478 in Q1 2006. Net loss in Q1 increased to $ 1.7 million from $817,478 in Q1 2006 (after interest and bank charges of $3,689 in Q1 of fiscal 2006). Net loss per share (basic and diluted) in Q1increased to $(0.05) EPS on36,098,248 weighted average basic and diluted number of shares from $(0.02) EPS on 34,019,056 weighted average basic and diluted number of shares in Q1 2006.

Management pointed out in the first-quarter press release that the first quarter is considered the lowest mortgage sales period seasonally. They further stated that based on the first quarter they are estimating annualized mortgage originations of approximately $2.8 billion-$3 billion, which translates into $25 million-$30 million in gross revenue for fiscal 2007. This is lower than the $40 projection given in a press release dated April 30. The first quarter does not include bookings from the new mortgage brokers that joined MortgageBrokers.com during this quarter; it usually takes three to four months for new mortgage brokers to become effective producers. Considering their current cost structure, MortgageBrokers.com is expecting profitability in Q2 or Q3 of fiscal 2007.

In an SEC 8-K filing on May 22, MortgageBroker.com cancelled the previously announced 3-1 forward split. MortgageBrokers.com’s common stock trading continues to return to a normal trading volume. Considering the reported revenue of $1.2 million in Q1, the firm is maintaining both its fiscal 2007 revenue estimate of $24 million and its fiscal 2007 estimate of $0.20 EPS.

The firm also reiterates its “speculative buy” rating and 12-month price target of $1 per share.