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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