STAMPS.COM REPORTS SECOND QUARTER 2001 FINANCIAL RESULTS
Company reports 133% growth in postage business revenue over second quarter 2000, with 65% gross margin and narrowed losses
SANTA MONICA, Calif. – July 12, 2001 – Stamps.com(TM) (Nasdaq: STMP) today announced that revenue in the second quarter of 2001 was $5.1 million. Second quarter 2001 gross margin was 65% compared to 39% in the first quarter 2001. Second quarter cash net loss from continuing operations was $5.2 million, which excludes non-cash charges, restructuring and write down charges and loss related to the sale of iShip. On a per share basis, the equivalent continuing operations loss for the second quarter 2001 was $0.10 per share based on the weighted average common shares outstanding of 49.4 million. Cash and short-term investments as of June 30, 2001 was $197.6 million, or $4.00 per weighted average share.
“We have done a tremendous job of cutting costs over the last couple of quarters, greatly improving our bottom line,” said CEO Bruce Coleman. “Our focus now is on growing our top line profitably through growing our core Internet Postage business, adding revenue streams with current customers, and finding new customer segments.”
Stamps.com acquired 43,000 gross customers and ended the quarter at 307,000 active customers. For the second quarter 2001, total sales and marketing expenditures were $2.9 million compared with $4.3 million in the first quarter of 2001, and gross customer acquisition cost including promotional costs for the second quarter was $86. Cash burn for the second quarter was approximately $4 million, excluding one-time and unusual items such as restructuring charges, asset purchases, and contract settlements.
Revenue guidance for 2001 has slightly decreased from $23 million to $22 million. Gross margin is expected to be slightly less than 60% for the year, up from original expectations of 50%. Total sales and marketing spend will be $14 million, slightly less than previous guidance. The revenue expectations for 2002 have been reduced to $29 million, and the company now expects to be cash flow positive from continuing operations in the second quarter of 2002.
Stamps.com (Nasdaq: STMP) is the leading provider of Internet-based postage services. Its flagship product, Stamps.com Internet Postage, enables customers to print U.S. Postal Service-approved postage via a computer and Internet connection. Based in Santa Monica, California, Stamps.com serves more than 300,000 customers.
“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, including the company’s ability to achieve profitability, 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 for the fiscal year ended December 31, 2000, its quarterly report on Form 10-Q for the fiscal quarter ending March 31, 2001, and its Current Reports on Form 8-K/A. 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.
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