Stamps.com Reports Fourth Quarter and 2002 Financial Results
Thirteen Percent Sequential Revenue Growth; Continued Strong NetStamps Adoption
SANTA MONICA, Calif. – February 12, 2003 – Stamps.com (Nasdaq: STMP) today announced financial results for the fourth fiscal quarter and the entire year ended December 31, 2002. Customer adoption of the NetStamps feature continues to be strong, including sales of approximately 420 thousand NetStamps label sheets during the quarter. In addition, the shipping enhancements that the company launched in version 3.0 of its software during the fourth quarter have also seen good early customer adoption.
Fourth quarter financial highlights include the following:
- Total revenue was $4.5 million, up 13% sequentially from $4.0 million in the third quarter of 2002.
- The company spent $17.5 million during the fourth quarter repurchasing approximately 4.4 million of its own shares.
- Total cash and cash equivalents, including restricted cash and long-term investments, ended the quarter at $172.7 million, or $3.88 per share based on fourth quarter ending shares outstanding of 44.5 million. This compares to $190.2 million, or $3.89 per share based on third quarter ending shares outstanding of 48.9 million.
- Gross margin was 67%, compared to 65% in the third quarter of 2002.
- GAAP net loss was $1.4 million, or $0.03 on a per share basis, compared with a net loss of $2.2 million, or $0.04 on a per share basis, in the third quarter of 2002.
“NetStamps continues to be a strong performer for us with high customer usage and strong label sales,” said president and CEO Ken McBride. “During 2003, we plan to build on our initial successes with NetStamps and to focus on finding new ways to leverage this innovative product feature into new growth opportunities.”
Stamps.com reported net loss on a GAAP (Generally Accepted Accounting Principles) basis of $1.4 million for the fourth quarter of 2002, compared to a net loss of $2.2 million in the third quarter of 2002, and a net loss of $1.0 million in the fourth quarter of 2001. On a per share basis, the GAAP net loss was $0.03 in the fourth quarter of 2002 based on the weighted average common shares outstanding of 46.2 million. For fiscal year ended December 31, 2002, net loss was $6.8 million or 14 cents per weighted average share. This compares to a loss of $209.6 million or $4.14 per weighted average share for the fiscal year ended December 31, 2001.
During the fourth quarter, the company bought approximately 4.4 million shares for approximately $17.5 million, reducing the fourth quarter ending shares outstanding to 44.5 million from 48.9 million at the end of the previous quarter. On October 24, 2002, the company announced that its Board of Directors had authorized a six month repurchase program of up to $30 million of its common stock, and the fourth quarter 2002 repurchase of stock was done under that program.
For the first quarter of 2003, the company expects revenue to be flat versus the fourth quarter 2002 level. First quarter gross margin is expected to be in the mid 60% range, and first quarter total operating expenses are expected to increase approximately $1 million from the fourth quarter 2002 level. On a per share basis, first quarter 2003 GAAP net income is expected to be a loss of approximately five cents per share. For the full year 2003, the company expects total revenue to be approximately $20 million, a 22% increase over 2002 revenue.
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, CompUSA, 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.