Stamps.com Reports Third Quarter 2002 Financial Results
First Sequential Revenue Growth in Five Quarters; Strong Sales of NetStamps Labels
SANTA MONICA, Calif. – October 24, 2002 – Stamps.com (Nasdaq: STMP) today announced financial results for the third fiscal quarter 2002, which included the first quarterly sequential revenue growth in the past five quarters. The company also reported a strong third quarter launch of NetStamps with approximately 473 thousand sheets of NetStamps labels sold during the third quarter. NetStamps, a new form of PC Postage®, allows customers to print sheets of generic postage that are not tied to a destination address and have no expiration date, using NetStamps labels and any ordinary inkjet or laser printer.
Third quarter financial highlights include the following:
- Total cash and cash equivalents, including restricted cash and long-term investments, ended the quarter at $190.2 million, or $3.84 per weighted average share, versus $194.9 million at the end of the second quarter 2002.
- The company spent $5.6 million during the third quarter repurchasing approximately 1.3 million of its own shares.
- Total revenue was $4.0 million, up 8% sequentially from $3.7 million in the second quarter of 2002.
- Gross margin was 65%, compared to 67% in the second quarter of 2002.
- GAAP net loss was $2.2 million, or a loss of $0.04 on a per share basis, compared with the second quarter 2002 GAAP net loss of $2.5 million or $0.05 on a per share basis.
“The enthusiastic adoption of NetStamps by our customers continued with strong sales of the NetStamps labels throughout the quarter,” said president and CEO Ken McBride. “Although our extensive effort to transform our product is still underway, the pieces we have put into place so far have already begun to pay dividends with our first sequential quarterly revenue growth in five quarters.”
Stamps.com reported net loss on a GAAP (Generally Accepted Accounting Principles) basis of $2.2 million for the third quarter of 2002, compared to a net loss of $2.5 million in the second quarter of 2002, and a net loss of $1.1 million in the third quarter of 2001. On a per share basis, the GAAP net loss was $0.04 in the third quarter of 2002 based on the weighted average common shares outstanding of 49.5 million.
Stamps.com also announced today that its Board of Directors has authorized the repurchase of up to $30 million of its common stock over the next 6 months. The company’s purchase of any of its shares is subject to limitations that may be imposed on such purchases by applicable securities laws and regulations and the rules of the Nasdaq Stock Market. Purchases may be made in the open market or in privately negotiated transactions from time to time at management’s discretion. The timing of purchases, if any, and the number of shares to be bought at any one time will depend on market conditions.
For the fourth quarter, the company expects revenue to be up approximately 8% sequentially from the third quarter level, and it expects gross margins to be in the mid 60% range. Fourth quarter total operating expenses are expected to be approximately the same as in the third quarter. On a per share basis, GAAP net income is expected to be a loss of approximately four cents per share in the fourth quarter.
Stamps.com (Nasdaq: STMP) is a leading provider of Internet-based postage services. Stamps.com enables customers to print U.S. Postal Service-approved postage with just a PC, printer and Internet connection. The company targets its services to small businesses, home offices, and individuals, and currently has partnerships with companies including Auctionwatch, Comp USA, Earthlink, HP, Microsoft, NCR, Office Depot, PayPal and the U.S. Postal Service.
“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 complete its products and obtain regulatory approval, 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, its subsequent Quarterly Reports on Form 10-Q, 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, the Stamps.com logo and NetStamps are trademarks of Stamps.com Inc. All other brands and names are property of their respective owners.