Stamps.com Reports First Quarter 2002 Financial Results
SANTA MONICA, Calif. – April 25, 2002 – Stamps.comTM (Nasdaq: STMP) today announced financial results for the first fiscal quarter 2002. In addition, the company announced that it has made good progress on its goals of transforming its product offering to include a generic postage feature, and a completely Web-based service.
First quarter highlights are as follows:
- Service fee revenue was $3.9 million compared to $3.7 million in the first quarter of 2001 and $4.0 million in the fourth quarter of 2001;
- Total revenue was $4.1 million and gross margin was 71%;
- Total operating expenses, excluding non-cash deferred compensation, were $4.8 million, down 6% sequentially from the fourth quarter of 2001 due to continued tight cost control;
- Cash net loss from continuing operations, as defined below, was $0.7 million, or a loss of $0.01 on a per share basis, compared to a loss of $0.18 in the first quarter of 2001 and a loss of $0.01 in the fourth quarter of 2001 on the same basis;
- Cash and cash equivalents, including restricted cash and long-term investments, ended the quarter at $192.1 million, or $3.78 per weighted average share.
“We have made good progress in the beta test of the new generic postage feature, and we are working on a dramatically simpler Web-based customer interface that should improve customer acquisition,” said president and CEO, Ken McBride. “Additionally, we are encouraged by the initiatives on intelligent mail discussed at the National Postal Forum this week. Secure two-dimensional bar codes such as those produced by Stamps.com are an important part of those initiatives.”
The initiatives on intelligent mail announced by the Mailing Industry Task Force this week at the National Postal Forum focused on the usage of bar codes to provide uniqueness and intelligence to each mail piece or package. The intelligent mail initiatives will provide several benefits to the Postal Service and to its customers, including the ability to track and trace the mail stream from origin to destination, the ability to provide better mail intelligence to business customers, and as an enhancement to mail security.
For the first quarter of 2002, cash net loss from continuing operations, which excludes amortization of goodwill, deferred compensation, restructuring and write down charges, loss from the sale of iShip, and losses or gains from Encryptix, was $0.7 million. This compares to a loss of $0.3 million in the fourth quarter of 2001 and a loss of $9.0 million in the first quarter of 2001, measured on the same basis. On a per share basis, the cash net loss from continuing operations for the first quarter 2002 was $0.01 per share based on the weighted average common shares outstanding of 50.9 million. This compares to a loss of $0.01 in the fourth quarter of 2001 and a loss of $0.18 in the first quarter of 2001, measured on the same basis.
Earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations, which excludes the same non-cash and other charges as outlined above, was a loss of $157 thousand for the first quarter of 2002. This compares to a gain of $309 thousand in the fourth quarter of 2001 and a loss of $10.3 million in the first quarter of 2001, measured on the same basis. For the first quarter of 2002, Stamps.com acquired 28 thousand gross customers and ended the quarter at 279 thousand customers.
Stamps.com also reported net loss on a GAAP (Generally Accepted Accounting Principles) basis of $0.7 million for the first quarter of 2002, compared to a loss of $176.7 million in the first quarter of 2001, and a loss of $1.0 million in the fourth quarter of 2001. On a per share basis, the GAAP net loss was $0.01 in the first quarter of 2002 compared to a loss of $3.60 in the first quarter of 2001 and a loss of $0.02 in the fourth quarter of 2001.
On January 10, 2002, Stamps.com launched the beta test of its generic postage technology, and is currently running the test with over 300 customers. The technology allows customers to print sheets of generic postage that are not tied to a destination address and have no expiration date, using special labels and any ordinary inkjet or laser printer. Customer feedback continues to be positive.
The company expects revenue to be approximately flat with first quarter numbers in the second quarter of 2002 as it does not plan to invest in sales & marketing until after the release of its new product features and its new Web-based product. Gross margins are expected to be in the range of 65% to 70% for the second quarter. Second quarter total operating expense will increase from the first quarter level by approximately $1 million. On a per share basis, cash net loss from continuing operations is expected to be a loss of 3 to 4 cents in the second quarter.
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.
“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 or achieve regulatory approval for its new products, 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, 2001, and its Current Reports on Form 8-K. 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 and the Stamps.com logo are trademarks of Stamps.com Inc. All other brands and names are property of their respective owners.