SANTA CLARA, Calif., Aug. 13, 2002 (PRIMEZONE) -- iPrint Technologies, inc. (Nasdaq:IPRT), a leading supplier of online and offline marketing and customized branding solutions, today announced revenues of $11.9 million for the second quarter of 2002, the same as the first quarter of 2002, and compared to $2.5 million for the second quarter of 2001. The loss before cumulative effect of accounting change for the second quarter of 2002 was $2.4 million, or $0.04 per share, the same as the first quarter of 2002, and compared to a loss of $3.6 million or $0.12 per share, in the second quarter of 2001. The amounts for 2001 (prior year) do not include the results of Wood Alliance, Inc., which was acquired on October 31, 2001.
Pro-forma net loss, excluding cumulative effect of the accounting change, depreciation and amortization, amortization of deferred compensation, and corporate restructuring charges, for the second quarter 2002 was $1.1 million, or $0.02 per share, compared with a pro forma net loss of $1.4 million, or $0.03 per share, in the first quarter of 2002, and a pro forma net loss of $3.0 million, or $0.10 per share, in the second quarter of 2001. During the second quarter of 2002, the Company recorded $386,000 of restructuring charges.
On January 1, 2002, the Company adopted Statement of Financial Accounting Standards No. 142, "Goodwill and Other Intangibles" (SFAS No. 142). Under SFAS No. 142, the Company evaluated for impairment the $25.5 million in goodwill that resulted from the Company's merger in October 2001 with Wood Alliance, Inc. As a result of this evaluation, the Company has recorded a $23.3 million non-cash charge to reduce the carrying value of goodwill as of June 30, 2002, of which $18 million was recorded in the first quarter and $5.3 million was recorded in the second quarter. The impact on earnings per share for the cumulative effect of the accounting change is a $0.42 loss per share, including an approximate $0.32 loss per share for the first quarter and a $0.10 loss per share for the second quarter.
Cash and cash equivalents totaled $568,000 as of June 30, 2002, compared to $4.0 million in cash and cash equivalents and restricted cash as of March 31, 2002. The Company had no restricted cash as of June 30, 2002, compared to $2.4 million as of March 31, 2002. As of June 30, 2002, there were approximately 54.7 million shares of common stock outstanding.
The Company is currently in discussions with certain parties considering various business and financing options. No definitive agreements have been reached at this time and there can be no assurance agreements can or will be reached.
Second Quarter 2002 Highlights
-- iPrint's Wood Associates subsidiary expanded its global presence by aligning with Australia-based Hannebery Carroll. This agreement provides Wood with sales, distribution and customer service capabilities throughout Australia and New Zealand, and potentially new revenue opportunities in the United States. This was Wood's second global alliance. Previously, it teamed with England-based Incentive Group to service companies in England, Europe, Africa, and the Middle East.
-- On June 11, 2002, iPrint transferred its securities from the Nasdaq National Market to the Nasdaq SmallCap Market. It remains listed under the ticker symbol: IPRT.
-- Built and deployed three new online Company Merchandise Stores for DuPont-related businesses including DuPont Dow Elastomers, Standox(R), and Spies Hecker(R). These deployments are in addition to the two online shops already launched by iPrint for DuPont in Q1 2002. The online stores provide an easy and cost effective online source for DuPont branded promotional merchandise.
-- Launched two online Company Merchandise Stores for StorageTek. These online stores feature an array of promotional items with the StorageTek logo including embroidered apparel, tradeshow giveaways, executive gifts, travel bags, and golf-related items.
-- Selected as a preferred promotional merchandise vendor by Gear for Sports(R), a major supplier of branded sportswear to corporate America and a licensee of both the USGA and The PGA. This agreement enables Wood Associates to supply merchandise directly to GEAR for Sports' corporate customers.
Conference Call
iPrint's second quarter 2002 earnings conference call, will be held today, August 13, 2002, at 2:30 p.m. PDT. 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 Q2 2002 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 online and offline marketing and customized branding solutions to the Fortune 1000. With a network of offices nationwide, iPrint works with over 200 world-class organizations such as BP, Charles Schwab, Compaq, DuPont, Microsoft, OfficeMax, Oracle, Sun Microsystems, Washington Mutual and Wyeth Pharmaceuticals, 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 about 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 may contain "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 Company business relationships. 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 success of these business relationships 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 Form 10-K and proxy, available for viewing on its Web site http://www.iPrintTech.com. (To access this information, click on "Investor Relations," "SEC Filings.")
iPrint Technologies, inc.
Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Six months ended
June 30, June 30,
----------------- ------------------
2002 2001 2002 2001
------- ------- -------- -------
Revenues:
Printed products $11,866 $ 2,346 $ 23,789 $ 5,410
Other -- 121 -- 239
------- ------- -------- -------
Total revenues 11,866 2,467 23,789 5,649
Cost of sales:
Printed products 7,954 1,460 15,956 3,597
Other -- -- -- --
------- ------- -------- -------
Total cost of sales 7,954 1,460 15,956 3,597
Research and development 484 1,326 1,013 2,964
Sales and marketing 3,489 1,993 6,990 5,724
General and administrative 2,030 1,496 4,121 3,091
Amortization of
deferred compensation 106 (17) 229 (417)
Corporate restructuring
costs 386 106 386 394
------- ------- -------- -------
Total operating expenses 6,495 4,904 12,739 11,756
Loss from operations (2,583) (3,897) (4,906) (9,704)
Other income (expense), net (218) 335 (252) 798
------- ------- -------- -------
Loss before income tax (2,801) (3,562) (5,158) (8,906)
Income tax (expense) benefit 378 -- 378 --
------- ------- -------- -------
Loss before cumulative
effect of accounting change (2,423) (3,562) (4,780) (8,906)
Cumulative effect
of accounting change (5,316) -- (23,316) --
======= ======= ======== =======
Net loss $(7,739) $(3,562) $(28,096) $(8,906)
======= ======= ======== =======
Basic and diluted net loss
per share before cumulative
effect of accounting change $ (0.04) $ (0.12) $ (0.09) $ (0.30)
======= ======= ======== =======
Cumulative effect of
accounting change per share $ (0.10) $ (0.00) $ (0.42) $ (0.00)
======= ======= ======== =======
Basic and diluted
net loss per share $ (0.14) $ (0.12) $ (0.51) $ (0.30)
======= ======= ======== =======
Shares used to calculate
basic and diluted
net loss per share 54,748 30,158 54,737 30,130
======= ======= ======== =======
Pro forma net loss per share:
Pro forma net loss before
cumulative effect of
accounting change, excluding
amortization of deferred
compensation and corporate
restructuring costs $(1,931) $(3,473) $ (4,165) $(8,929)
======= ======= ======== =======
Pro forma basic and diluted
net loss per share before
cumulative effect of
accounting change, excluding
amortization of deferred
compensation and corporate
restructuring costs $ (0.04) $ (0.12) $ (0.08) $ (0.30)
======= ======= ======== =======
Pro forma net loss before
cumulative effect of
accounting change, excluding
depreciation and amortization,
amortization of deferred
compensation, and corporate
restructuring costs $(1,135) $(2,962) $ (2,579) $(7,912)
======= ======= ======== =======
Pro forma basic and diluted
net loss per share before
cumulative effect of
accounting change, excluding
depreciation and amortization,
amortization of deferred
compensation and corporate
restructuring costs $ (0.02) $ (0.10) $ (0.05) $ (0.26)
======= ======= ======== =======
iPrint Technologies, inc.
Balance Sheets
(In thousands)
June 30, December 31,
2002 2001
-------- --------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 568 $ 2,296
Short-term investments -- 2,111
Restricted cash -- 2,357
Accounts and other receivables, net 6,203 11,147
Inventory 1,951 1,991
Prepaid expenses and other
current assets 1,163 1,032
-------- --------
Total current assets 9,885 20,934
Property and equipment, net 2,857 4,265
Deposits and other assets 547 657
Goodwill and intangibles 2,214 25,859
======== ========
$ 15,503 $ 51,715
======== ========
Liabilities and Stockholders' Equity
Current liabilities:
Overdraft $ 123 $ 923
Accounts payable 5,563 7,298
Accrued liabilities 6,095 8,096
Current portion of bank borrowings
and capital lease 3,307 6,833
-------- --------
Total current liabilities 15,088 23,150
Noncurrent portion of loan
and lease 3 6
Other long-term liabilities -- 163
Stockholders' equity:
Common stock and additional
paid-in capital 98,479 98,584
Notes receivable from stockholders (205) (205)
Deferred compensation, net (351) (579)
Accumulated deficit (97,511) (69,415)
Accumulated other comprehensive income -- 11
-------- --------
Total stockholders' equity 412 28,396
======== ========
$ 15,503 $ 51,715
======== ========