SANTA CLARA, Calif., May 7, 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 first quarter of 2002, compared with revenues of $10.7 million for the fourth quarter 2001, and $3.2 million for the first quarter 2001. Net loss for the first quarter 2002, before giving effect to the mandatory adoption of new accounting standards detailed below, was $2.4 million, or $0.04 per share, compared with a net loss of $4.0 million, or $0.09 per share, in the fourth quarter of 2001, and a net loss of $5.3 million, or $0.18 per share, in the first quarter of 2001.
The Company has adopted Statement of Financial Accounting Standards No. 142, "Goodwill and Other Intangibles" (SFAS No. 142) effective January 1, 2002. As a result of this adoption, the Company has estimated and recorded an $18.0 million non-cash charge to reduce goodwill in accordance with this mandatory change. Under the new standard, the Company must complete a valuation of the impairment of goodwill by June 30, 2002. As this analysis of the effect of SFAS No. 142 is in process, actual results may differ from the $18.0 million. The impact on earnings per share for the cumulative effect of the accounting change is a $0.33 loss per share for the three months ended March 31, 2002. The merger has been accounted for under the purchase method of accounting.
Pro-forma net loss before cumulative effect of the accounting change, excluding depreciation and amortization, deferred compensation, and restructuring charges, for the first quarter 2002 was $1.4 million, or $0.03 per share, compared with a net loss of $2.1 million, or $0.04 per share, in the fourth quarter of 2001, and a net loss of $5.0 million, or $0.16 per share, in the first quarter of 2001. During the first quarter of 2002, the Company did not record any restructuring charge.
Cash and cash equivalents, short-term investments and restricted cash totaled $4.0 million as of March 31, 2002, compared to $6.8 million as of December 31, 2001. Restricted cash totaled $2.4 million as of March 31, 2002, unchanged from December 31, 2001. As of March 31, 2002, there were approximately 54.8 million shares of common stock outstanding.
First Quarter 2002 Highlights
* Reduced Q1 2002 operating expenses by $1.5 million, as compared to
Q4 2001 on a pro-forma basis, excluding amortization of deferred
compensation and corporate restructuring costs, assuming a full
three months of both iPrint Technologies and Wood Associates
expenses.
* Expanded iPrint's relationship with Oracle by agreeing to extend
the existing Oracle Corporate e-Print Center (an online, branded
corporate print shop launched in January 2001) to include
tradeshow collateral such as invitations, announcements, binders,
name badges, banners and more. iPrint has integrated its
technology with Oracle(r) iProcurement which enables companies to
streamline print workflow, centralize control and accountability,
and cut costs while having easy access to iPrint's secure,
customized print center available 24/7.
* Built and deployed two online Company Merchandise Stores for
DuPont in Q1 2002. DuPont's primary Company Merchandise Store
includes an integration of iPrint's technology with the Ariba
platform. This integration simplifies the ordering and fulfillment
process, bringing efficiencies and cost savings.
* Launched three online Company Merchandise Stores for Kraft Foods
in Q1 2002. These Company Stores offer an array of custom-branded
promotional items such as golf-related merchandise, travel gear,
apparel, and executive gifts.
* Announced or signed multi-year contracts with Chevron Phillips
Chemical Company LP, Fireman's Fund Insurance Company and
StorageTek. iPrint launched Company Merchandise Stores for Chevron
Phillips and Fireman's Fund, allowing their employees to order and
receive corporate-branded items via the Internet.
* iPrint's retail Web site solution, iPrint.com, won the CIO Web
Business 50 Award for the third year running. The 5th annual CIO
Web Business 50 Award from IDG's CIO magazine honors 50
outstanding Web sites across business, government and non-profit
platforms. Winning sites have combined excellence in technology
design and functionality to create a top notch experience for
their consumers, business partners and other users.
Conference Call
iPrint's first quarter 2002 earnings conference call, initially scheduled for today, has been rescheduled for May 14, 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 Q1 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, Kraft Foods, Microsoft, OfficeMax, Oracle, PeopleSoft, 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)
Three Months Ended
March 31,
--------------------
2002 2001
-------- --------
(Unaudited)
Revenues $ 11,923 $ 3,182
Cost of revenues 8,002 2,137
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Gross Profit 3,921 1,045
Operating expenses:
Research and development 529 1,638
Sales and marketing 3,501 3,731
General and administrative 2,091 1,595
Amortization of deferred compensation,
net of forfeitures 123 (400)
Corporate restructure costs -- 288
-------- --------
Total operating expenses 6,244 6,852
Other income, net (34) 463
-------- --------
Loss before cumulative
effect of accounting change (2,357) (5,344)
Cumulative effect of accounting change (18,000) --
-------- --------
Net loss $(20,357) $ (5,344)
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Basic and diluted loss per share from loss
before cumulative effect of accounting change $ (0.04) $ (0.18)
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Basic and diluted loss per share from net loss $ (0.37) $ (0.18)
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Shares used to calculated basic
and diluted per share amounts 54,727 30,136
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Pro forma per share from loss before cumulative
effect of accounting change:
Pro forma net loss before cumulative effect of
accounting change excluding, amortization of
deferred compensation and corporate
restructuring costs $ (2,234) $ (5,456)
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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) $ (0.18)
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Pro forma net loss before cumulative effect of
accounting change excluding depreciation and
amortization, amortization of deferred
compensation and corporate restructuring costs $ (1,443) $ (4,950)
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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 $ (0.03) $ (0.16)
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iPrint Technologies, inc.
Balance Sheet
(In thousands)
March 31, December 31,
2002 2001
------- -------
(unaudited)
Assets
Current assets:
Cash and cash equivalents $ 1,617 $ 2,296
Short-term investments -- 2,111
Restricted cash 2,368 2,357
Accounts and other receivables, net 7,754 11,147
Inventory 2,099 1,991
Prepaid expenses and other current assets 868 1,032
------- -------
Total current assets 14,706 20,934
Property and equipment, net 3,565 4,265
Deposits and other assets 598 657
Goodwill and intangibles 7,614 25,859
======= =======
$26,483 $51,715
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Liabilities and Stockholders' Equity
Current liabilities:
Overdraft $ -- $ 923
Accounts payable 6,001 7,298
Accrued liabilities 6,430 8,096
Current portion of bank
borrowings and capital lease 5,990 6,833
------- -------
Total current liabilities 18,421 23,150
Noncurrent portion of loan and lease 5 6
Other long-term liabilities -- 163
Commitments -- --
Stockholders' equity:
Common stock and additional paid-in capital 98,488 98,584
Notes receivable from stockholders (205) (205)
Deferred compensation, net (457) (579)
Accumulated deficit (89,772) (69,415)
Accumulated other comprehensive income 3 11
-------- --------
Total stockholders' equity 8,057 28,396
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$ 26,483 $ 51,715
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