iPrint Announces Q4 and 2001 Year-End Results


SANTA CLARA, Calif., March 7, 2002 (PRIMEZONE) -- iPrint Technologies, inc. (Nasdaq:IPRT), a leading supplier of online and offline marketing and branding solutions, today announced revenues of $10.7 million for the fourth quarter of 2001, up 135% from $4.5 million in the same period last year. iPrint's revenues for 2001 were $17.9 million as compared to $17.1 million for 2000. Net loss for the fourth quarter 2001 was $4.0 million, or $0.09 per share, compared with a net loss of $4.6 million, or $0.15 per share, in the third quarter of 2001, and a net loss of $7.2 million, or $0.24 per share, in the fourth quarter of 2000. Net loss for 2001 was $17.6 million, or $0.51 per share, compared with a net loss of $36.0 million, or $1.39 per share, during 2000.

The Company's results of operations reflect the combination with Wood Associates subsequent to the closing of the merger on November 1, 2001. The merger has been accounted for under the purchase method of accounting.

On a comparative basis, the net loss for the fourth quarter 2001 beat the First Call consensus estimate of a net loss of $0.11 per share by $0.02.

Net loss, excluding deferred compensation and restructuring charges, for the fourth quarter 2001 was $3.0 million, or $0.06 per share, compared with a net loss of $3.4 million, or $0.11 per share, in the third quarter of 2001, and a net loss of $7.0 million, or $0.23 per share, in the fourth quarter of 2000.

"Since completing the merger on November 1, 2001, we have been aggressively cutting our operating costs to reduce cash burn," stated Monte Wood, President and CEO of iPrint Technologies, inc. "We have recently reduced our workforce by 28% and cut our quarterly operating expense run rate by $2 million. The majority of these savings are not reflected in our Q4 numbers. We believe that these actions combined with our planned revenue growth should allow us to reach our goal of turning cash flow positive in the second half of 2002."

Cash and cash equivalents, short-term investments and restricted cash totaled $6.8 million as of December 31, 2001, compared to $12.0 million as of September 30, 2001. Restricted cash totaled $2.4 million as of December 31, 2001, compared to $356,000 as of September 30, 2001. As of December 31, 2001, there were approximately 54.6 million shares of common stock outstanding.

Restructuring charges of $847,000, recorded in the fourth quarter 2001, and charges of $2.2 million, recorded for the year ended December 31, 2001, related primarily to lease space reductions and severance payments to terminated employees. As of December 31, 2001, $880,000 remains to be paid.

Upon the adoption of the new FASB accounting standards in 2002, the Company believes a non-cash intangibles impairment charge will be required, which management currently estimates will range between $15 million and $23 million.

Other Fourth Quarter 2001 Highlights

* Completed merger with Wood Associates on November 1, 2001.

* Continued to restructure the company with the objective of bringing operating expenses in line with current revenue expectations.

* Transitioned all Wood Associates' online corporate stores to the iPrint technology platform and launched new online stores for customers which include BP, Charles Schwab, Chevron Phillips Chemical Company, Compaq, Dupont, Interwoven, Sun Microsystems, Sybase, US Marine, the U.S. Ski & Snowboard Association, and Washington Mutual.

* Announced the availability of iPrint's CustomPrint(tm) workflow technology. CustomPrint is a completely integrated end-to-end workflow solution that enables iPrint buyers and suppliers to manage print and promotional buying workflow. This streamlines the procurement process, increases cost savings, and improves efficiency for its corporate customers.

Financial Guidance

The Company believes its Q1 2002 revenues (traditionally Wood Associates' slowest quarter) will be approximately equal to Q4 2001 revenues, with total revenues for the year 2002 projected at $55 million.

Assuming that the Company is able to achieve its revenue goals, the Company expects to turn cash flow positive during the second half of 2002.

Conference Call

iPrint's Senior Management will host its fourth quarter earnings conference call today, March 7, 2002, at 2:30 p.m. PST. Interested parties will find a live Web cast and replay of the call at http://www.iPrintTech.com on the "Investor Relations" page (click on the "Conference Calls" link). A transcript of the Q4 2001 conference call will also be made available at that location.

About iPrint

iPrint Technologies, inc. (Nasdaq:IPRT), created by a merger between iPrint and Wood Associates, is a leader in providing promotional branding solutions and technology to the Fortune 1000. With a network of offices nationwide, iPrint works with over 200 world-class organizations such as BP, Charles Schwab, Compaq, Microsoft, OfficeMax, Oracle, and PeopleSoft, as well as servicing over one million small business customers. iPrint's technology and solutions improve the way businesses buy custom imprinting and corporate printing. iPrint can integrate into e-procurement platforms, streamlining the cost of ordering professional printing and promotional merchandise and improving the overall ROI of e-procurement efforts. iPrint's technology also powers the award-winning Web site, iPrint.com, which offers SOHO customers convenience and significant cost savings on professionally printed products. The company has been distinguished with the Inc./Cisco Technology Award, an "Innovation in Print" award by CAP Ventures, and named the #15 top eBusiness by InformationWeek. For information on corporate services, please visit http://www.iPrintTech.com.

(Sources: PC Data Online, Top Monthly E-Tailers Reports and Top Monthly Sites Reports; CAP Ventures, Research; BizRate.com, Customer Certified Ratings; Keynote.com, 2000.)

iPrint is a registered trademark of iPrint Technologies, inc. Other marks are property of their respective owners.

This press release contains "forward looking statements" (as that phrase is used in Section 21E of the Securities Exchange Act of 1934) related to the current quarter's results and plans and expectations about the company's prospects and the expected benefits of the company's restructuring efforts. Actual results could differ materially from those stated or implied in the company's forward-looking statements because of risks and uncertainties associated with our business, including without limitation the ability of the Company to meet its revenue goals and continue to control expenses, the Company's liquidity position, and the status of iPrint's Nasdaq listing. In addition, iPrint's forward-looking statements should be considered in the context of other risk factors discussed in its Securities and Exchange Commission filings, including its most recent Forms 10-Q and 10-K, and its S-4 Registration Statement and proxy filed in connection with the merger, all available for viewing on its Web site http://www.iPrintTech.com.


                       iPrint Technologies, inc.
                       Statements of Operations
               (In thousands, except per share amounts)
                              (Unaudited)

                           Three Months Ended    Twelve Months Ended
                              December 31,           December 31,
                           ------------------    --------------------
                             2001       2000       2001        2000
                           -------    -------    --------    --------
 Revenues:
  Products                 $10,643    $ 4,377    $ 17,635    $ 16,282
  Other                         24        156         305         787
                           -------    -------    --------    --------
 Total revenues             10,667      4,533      17,940      17,069

 Cost of sales:
  Products                   7,633      3,048      12,256      11,984
  Other                       --         --          --            37
                           -------    -------    --------    --------
 Total cost of sales         7,633      3,048      12,256      12,021
  Research and development   1,072      1,757       5,192       6,652
  Sales and marketing        3,252      5,561      10,624      27,390
  General and
   administrative            1,800      1,778       6,213       7,374
  Amortization of deferred
   compensation                159        200          33       1,849
  Corporate restructuring
   costs                       847       --         2,226        --
                           -------    -------    --------    --------
 Total operating expenses    7,130      9,296      24,288      43,265

 Loss from operations       (4,096)    (7,811)    (18,604)    (38,217)

 Other income, net              83        603       1,051       2,242
                           -------    -------    --------    --------
 Net loss                  $(4,013)   $(7,208)   $(17,553)   $(35,975)
                           =======    =======    ========    ========
 Basic and diluted
  net loss per share       $ (0.09)   $ (0.24)   $  (0.51)   $  (1.39)
                           =======    =======    ========    ========
 Shares used to calculate
  basic and diluted net
  loss per share            46,736     30,064      34,316      25,970
                           =======    =======    ========    ========
 Pro forma net loss
  excluding amortization
  of deferred compen-
  sation and corporate
  restructuring costs      $(3,007)   $(7,008)   $(15,294)   $(34,126)
                           =======    =======    ========    ========
 Pro forma basic and
  diluted net loss per
  share excluding
  amortization of deferred
  compensation and
  corporate restructuring
  costs                    $ (0.06)   $ (0.23)   $  (0.45)   $  (1.31)
                           =======    =======    ========    ========
 Pro forma net loss
  excluding depreciation
  and amortization,
  amortization of
  deferred compensation,
  and corporate
  restructuring costs      $(2,072)   $(6,403)   $(12,807)   $(32,016)
                           =======    =======    ========    ========
 Pro forma basic and
  diluted net loss per
  share excluding
  depreciation and
  amortization,
  amortization of
  deferred compensation
  and corporate
  restructuring costs      $ (0.04)   $ (0.21)   $  (0.37)   $  (1.23)
                           =======    =======    ========    ========

                      iPrint Technologies, inc.
                            Balance Sheets
                            (In thousands)

                                              December 31,
                                            2001        2000
                                          --------    --------
 Assets

 Current assets:
  Cash and cash equivalents               $  2,296    $ 19,283
  Short-term investments                     2,111       7,888
  Restricted cash                            2,357         356
  Accounts and other receivables, net       11,147       1,874
  Inventory                                  1,991        --
  Prepaid expenses and other current
   assets                                    1,032         412
                                          --------    --------
     Total current assets                   20,934      29,813

 Property and equipment, net                 4,255       4,070
 Deposits and other assets                     657         205
 Goodwill and intangibles                   25,859        --
                                          --------    --------
                                          $ 51,715    $ 34,088
                                          ========    ========


 Liabilities and Stockholders' Equity

 Current liabilities:
 Overdraft                                $    923    $   --
 Accounts payable                            7,298       2,509
 Accrued liabilities                         8,096       2,546
 Current portion of bank borrowings
  and capital lease                          6,833         196
                                          --------    --------
   Total current liabilities                23,150       5,251

 Noncurrent portion of loan and lease            6          12
 Other long-term liabilities                   163        --
                                          --------    --------
   Total liabilities                        23,319       5,263
                                          --------    --------
 Commitments

 Stockholders' equity:
 Common stock and additional
  paid-in capital                           98,587      83,292

 Notes receivable from stockholders           (205)       (655)
 Deferred compensation, net                   (580)     (1,950)
 Accumulated deficit                       (69,417)    (51,862)
 Accumulated other comprehensive income         11        --
                                          --------    --------
 Total stockholders' equity                 28,396      28,825
                                          --------    --------
                                          $ 51,715    $ 34,088
                                          ========    ========


            

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