iPrint Revises Earnings Estimates, Expects 30% Revenue Decline Versus Q4
Tuesday, March 27, 2001
(Menlo Park, CA - March 19, 2001) - iPrint, inc. (NASDAQ: IPRT), the leading online printing technology and infrastructure provider, announced today that it believes it will beat the Q1 2001 EPS expectations that the company set at its Q4 2000 conference call but that it will see a revenue shortfall from the guidance provided during the call due to pessimistic market conditions and a continued transition from a SOHO/consumer focus to the enterprise space. As a result of cost-cutting measures, the company expects a pro-forma loss per share of $0.185 to $0.195 excluding non-cash compensation charges and an anticipated restructuring charge. Additionally, the company expects a 30% to 35% sequential decline in revenues versus Q4 2000 and expects, in the current market environment, to trim annual revenue estimates by 20%-25%. The company is leaving previous EPS guidance of a loss per share of $0.45-$0.50 in place and continues to believe it has adequate cash reserves to reach profitability. The company also announced that it has successfully consolidated its West Coast operations into a single facility and reduced its workforce from a high of 182 employees during Q4 2000 to an estimated 118 by the end of Q1 2001. The company anticipates the charge associated with the restructure will be $250,000 to $500,000, of which $50,000 to $100,000 will be cash related. This charge will include workforce reduction, vacating certain facilities, and disposing of certain office and computer equipment. More information about quarterly performance will be addressed in iPrint's Q1 2001 conference call to be held April 23 at 2:30 pm Pacific Time.