Stamps.com Reports First Quarter 2003 Financial Results
Revenue Growth for Third Straight Quarter; Customer Usage of the Service Up by More than 50% Year over Year
SANTA MONICA, Calif. – April 23, 2003 – Stamps.com (Nasdaq: STMP) today announced financial results for the first fiscal quarter ended March 31, 2003. Stamps.com continued its revenue growth trend in the first quarter with its third straight quarter of sequential revenue increase. In addition, as a result of its dramatically improved product, total customer postage printed using Stamps.com increased more than 50% for the first quarter of 2003 versus the same quarter last year.
First quarter financial results include the following:
- Total revenue was $4.6 million, up from $4.1 million in the first quarter of 2002, and up from $4.5 million in the fourth quarter of 2002.
- The company spent $2.0 million during the first quarter repurchasing approximately a half million of its own shares.
- Total cash and cash equivalents, including restricted cash and long-term investments, ended the quarter at $168.1 million, or $3.81 per share based on first quarter ending shares outstanding of 44.1 million. This compares to $172.7 million, or $3.88 per share, at the end of the fourth quarter 2002.
- Gross margin for the quarter was 62%, down from 67% in the fourth quarter of 2002. The decrease in first quarter gross margin was primarily due to increased promotional costs associated with an increased level of customer acquisition in the first quarter of 2003.
- GAAP net loss was $2.1 million, or $0.05 on a per share basis, compared with a net loss of $0.7 million, or $0.01 on a per share basis, in the first quarter of 2002. The loss widened primarily as a result of an increased first quarter 2003 investment in sales & marketing.
“We are pleased with the continued trend of sequential quarterly revenue growth which began in the third quarter last year,” said president and CEO Ken McBride. “In addition, customer usage of our service is up very dramatically—a demonstration of the increased value of our improved product to our customers.”
Stamps.com reported net loss on a GAAP (Generally Accepted Accounting Principles) basis of $2.1 million for the first quarter of 2003, compared to a net loss of $0.7 million in the first quarter of 2002. On a per share basis, the GAAP net loss was $0.05 in the first quarter of 2003 based on the weighted average common shares outstanding of 44.4 million, compared to a GAAP net loss of $0.01 in the first quarter of 2002 based on the weighted average common shares outstanding of 50.8 million.
During the first quarter, the company bought approximately a half million shares for approximately $2.0 million, under its share repurchase program that was announced on October 24, 2002. Stamps.com also announced today that its Board of Directors has authorized a new repurchase program for up to $20 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 second quarter of 2003, the company expects revenue to be up sequentially to $4.7 million. Second quarter gross margin is expected to be in the low 60% range, and second quarter total operating expenses are expected to increase approximately one million dollars from the first quarter 2002 level. On a per share basis, second quarter 2003 GAAP net income is expected to be a loss of approximately seven cents per share. For the full year 2003, the company continues to expect 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, 2002, its subsequent Quarterly Reports on Form 10-Q, and its Current Reports on Form 8-K, if any. 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.