STAMPS.COM REPORTS SECOND QUARTER 2000 FINANCIAL RESULTS
Second Quarter Revenue Grows 80 Percent
SANTA MONICA, Calif. – July 13, 2000 – Stamps.com(tm) (Nasdaq: STMP) today announced that second quarter revenue was $3.7 million, an increase of 80 percent over first quarter revenue. Second quarter net loss applicable to common shareholders excluding non-cash charges was $34.4 million, or $0.72 per share based on the weighted average common shares outstanding of 48.0 million. Balance sheet cash and short-term investments ended the second quarter at $333.6 million, or $7 per share.
“Our focus on acquiring higher revenue customers through commission-based selling programs during the second quarter has positively impacted revenue and has reduced marketing and customer support costs,” said Stamps.com Chairman and CEO John Payne. “In the Small Business unit, our Internet Postage™ service has attracted large volume mail users, many of whom use the service primarily to ship Express and Priority Mail packages, resulting in more revenue per small business customer to Stamps.com. Our Enterprise and E-Commerce business units are well positioned for continued growth with the recent launch of the Enterprise unit’s iShip™ Desktop and Professional multi-carrier shipping services and the planned release of our E-Commerce unit’s iReturn™ services. In bringing Internet mailing and shipping services to businesses of all sizes and industries, we have solid growth opportunities.”
Summary of Recent Events
July 12, 2000 – Stamps.com received approval from the US Postal Service (USPS) for release of Version 2.0 of its Internet Postage software. The 2.0 release expands functionality of the service for high-end mailers and helps users get more out of their mailing and shipping with better address correction, support for custom-sized and bill envelopes, Web browser integration, a more robust address book and easy access to USPS special services and Parcel Post.
July 8, 2000 – Stamps.com successfully recruited David Shoenfeld as chief marketing officer and executive vice president. Shoenfeld was formerly senior vice president of Worldwide Marketing and Communications for Federal Express and brings a tremendous wealth of industry experience, contacts and marketing expertise to the company.
July 7, 2000 – Prognostics, a leading independent market research firm, released initial results from a survey of 1,014 Stamps.com users that reported outstanding customer satisfaction ratings for the company.
90 percent of customers would recommend Stamps.com to a friend or colleague.
Customers rated overall value for the price of the Stamps.com as 8.3 out of 10.
Customers rated overall reliability of the service as 8.8 out of 10.
Ease of installation and configuration was rated 9.2 out of 10.
June 30, 2000 – Stamps.com announced that Forbes.com selected the company as one of the “most promising and competitive” players in the first annual “Best of the Web: B2B” (business-to-business) guide. According to Forbes.com, “Stamps.com is the best place on the Internet to buy postage, beating out rival E-stamp.com by extending its services to become the complete e-commerce shipping solution.”
June 19, 2000 – Stamps.com introduced iReturn Merchant Service and iReturn.com, two Internet-based services developed to help online merchants efficiently and cost effectively manage large volumes of merchandise returns. The iReturn services are expected to be available for the 2000 holiday shopping season.
June 14, 2000 – Stamps.com launched the iShip service from its Enterprise unit. The iShip Desktop and Professional Shipping Stations integrate seamlessly, giving employees the ability to process shipments from their desktop, while enabling employers to control costs by applying business rules across every desktop in the corporation.
May 24, 2000 – Stamps.com announced the formation of Stamps.com International, a wholly owned subsidiary that will bring the company’s mailing and shipping technologies and services to international markets.
May 17, 2000 – Stamps.com and Sprint announced the companies have entered into an agreement to deliver value-added services to owners of home-based businesses and offices.
May 16, 2000 – Stamps.com subsidiary EncrypTix(tm), Inc. announced that it had extended its initial round of private financing to include a new investment from The Walt Disney Company and an additional investment from Sabre Holdings, Inc., bringing the total investment to $35.8 million. In February, the company announced that it initially raised more than $30 million with the following investors: Stamps.com; Vulcan Ventures, Inc., the investment organization of Paul G. Allen; American Express Travel Related Services Company, Inc.; Galileo International; GetThere.com, Inc.; Loews Cineplex Entertainment Corporation; Mail Boxes Etc. USA, Inc.; Mitsubishi International Corporation; Sabre Holdings, Inc.; SunAmerica Investment, Inc.; and Tickets.com, Inc.
April 20, 2000 – Stamps.com announced an expansion of its alliance with Hewlett-Packard, which was established earlier this year. Stamps.com’s Internet Postage software is bundled on select HP personal LaserJet and workgroup LaserJet printers, and also on HP’s all-in-one inkjet printers.
April 18, 2000 – NCR Systemedia Group and Stamps.com announced a strategic alliance which extends the Stamps.com brand to retail locations and other office supply channels throughout the country and makes NCR the exclusive supplier of co-branded address and packaging labels, envelopes and other mailing supplies for Stamps.com Internet Postage.
April 7, 2000 – Stamps.com announced the “Power Plan,” a new service offering targeted for high volume postage users. This popular service plan, offered at a flat rate of $15.99 per month and supported by new advertising and selling programs aimed at large users of postage, has rapidly grown from 25 percent to 38 percent of the Company’s monthly new customer acquisitions.
Stamps.com(TM) provides the easiest, smartest way to mail or ship letters, packages or parcels anywhere and at anytime. Stamps.com operates three distinct business units focused on providing valuable e-services that allow small businesses, large corporations and e-commerce companies to control costs and efficiently manage their mailing, shipping and returns operations. Its business is anchored in key relationships with the U.S. Postal Service and United Parcel Service (UPS) and other carriers, including FedEx, Airborne Express and Yellow Freight. Stamps.com subsidiary, EncrypTix Corp., leverages its highly secure, patented technologies enabling companies to provide value-bearing documents like tickets, coupons and certificates over the Internet to consumers. Stamps.com International extends the company’s reach into foreign markets. Visit sdcmainprod.wpengine.com for more information.
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: This release may contain forward-looking statements that involve risks and uncertainties. Important factors, which could cause actual results to differ materially from those in the forward-looking statements, are detailed in filings with the Securities and Exchange Commission made from time to time by Stamps.com, including its annual report on Form 10-K/A for the fiscal year ended December 31, 1999 and its quarterly report on form10-Q for the fiscal quarter ended March 31, 2000. Stamps.com undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Stamps.com, iShip, iReturn and the Stamps.com, iShip and iReturn logos are trademarks of Stamps.com Inc. All other brands and names are property of their respective owners.