Stamps.Com Reports Second Quarter 2003 Financial Results
Revenue Up 34% Year over Year; Total Postage Printed Up 78% Year over Year
SANTA MONICA, Calif. – July 24, 2003 – Stamps.com (Nasdaq: STMP) today announced financial results for the second fiscal quarter ended June 30, 2003. Second quarter revenue was up 34% versus the same quarter last year, and up 9% versus the first fiscal quarter of 2003. Total postage printed using the Stamps.com service during the second quarter was up 78% from the same period last year as customer usage of newer Stamps.com features such as NetStamps and Shipping Label continues to increase.
Second quarter financial results include the following:
- Total revenue was $5.0 million, up 34% from $3.7 million in the second quarter of 2002, and up 9% from $4.6 million in the first quarter of 2003. Revenue growth was driven by an increase in service fee revenue, particularly from Power Plan customers, and by increased sales of consumable items such as NetStamps labels.
- Gross margin for the quarter was 64%, up from 62% in the first quarter of 2003.
- Net loss was $2.8 million compared with a net loss of $2.5 million in the second quarter of 2002 as the company increased its investment in sales & marketing and promotional spending by approximately $900 thousand year over year.
- Total cash and cash equivalents, as defined below, ended the quarter at $165.4 million, or $3.76 per share based on the second quarter ending shares outstanding of 44.0 million.
“We are pleased with the strong second quarter revenue growth and the dramatically increased usage of our service compared to the same quarter last year,” said president and CEO Ken McBride. “In the second quarter we also began to systematically increase our investment in sales and marketing as we find programs that are showing a good return on investment.”
Stamps.com reported net loss on a GAAP (Generally Accepted Accounting Principles) basis of $2.8 million for the second quarter of 2003, compared to a net loss of $2.5 million in the second quarter of 2002. On a per share basis, the net loss was $0.06 in the second quarter of 2003 based on the weighted average common shares outstanding of 44.0 million, compared to a net loss of $0.05 in the second quarter of 2002 based on the weighted average common shares outstanding of 50.6 million.
Total cash and cash equivalents, including restricted cash, short-term investments and long-term investments, ended the quarter at $165.4 million, or $3.76 per share based on second quarter ending shares outstanding of 44.0 million, excluding treasury stock. This compares to $168.1 million, or $3.81 per share, at the end of the first quarter calculated on the same basis. The company spent approximately $700 thousand during the second quarter repurchasing approximately 170 thousand of its own shares.
For the third quarter of 2003, the company expects revenue to be up sequentially from the second quarter to $5.1 million. Gross margin is expected to be in the low to mid 60% range. Total operating expense for the third quarter is expected to decrease by approximately $0.5 million from the second quarter level. On a per share basis, third quarter 2003 GAAP net income is expected to be a loss of approximately five 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 CompUSA, Earthlink, HP, Microsoft, NCR, Office Depot, Vendio 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, NetStamps and Hidden Postage are trademarks of Stamps.com Inc. All other brands and names, if any, are property of their respective owners.