Printcafe Reports Q3 Loss, Revenue and Earnings Improve Over 2001 Period
Press release from the issuing company
PITTSBURGH, Oct. 15 -- (Also see analysis from Printcafe’s conference call in the Special Reports section at www.whattheythink.com) Printcafe Software, Inc. (Nasdaq: PCAF) today announced revenue of $11.3 million for its third quarter ended September 30, 2002, a 5% increase over the $10.7 million recorded in the third quarter of 2001. Earnings before interest, taxes, depreciation, amortization, non-cash charges, other expense and restructuring charges (EBITDA) for the third quarter of 2002 were $18,000, compared to a loss of $541,000 computed on the same basis in the prior year period.
The Company's pro forma net loss for the third quarter of 2002 was $1.0 million, compared to a pro forma net loss of $3.3 million in the third quarter of 2001. Pro forma net loss is calculated as follows:
Quarter Ended Quarter Ended
September 30, 2001 September 30, 2002
(in thousands, except share and per share amounts)
EBITDA (541) 18
Less: depreciation & interest expense, net (2,786) (1,005)
Pro forma net loss (3,327) (987)
Pro forma net loss per share* (0.31) (0.09)
*Calculated using number of shares outstanding (10,595,000) as of September 30, 2002
The Company reported a $10.3 million net loss attributable to common stock calculated in accordance with generally accepted accounting principles (GAAP) for the third quarter of 2002 compared to a net loss of $19.9 million in the prior year period.
The Company completed its initial public offering (IPO) on June 21, 2002. Prior to this date, the Company had both preferred stock and common stock outstanding. In conjunction with the IPO, all of the outstanding shares of preferred stock converted to common stock, which increased the number of shares of common stock outstanding from 163,000 at March 31, 2002 (the last quarter end prior to the IPO) to 10,595,000 at June 30, 2002. The number of common shares outstanding on September 30, 2002 was also 10,595,000.
"Despite very tough economic conditions, we were able to improve both our top and bottom lines this quarter over the same period in 2001," commented Marc Olin, Printcafe President and Chief Executive Officer. "While our performance came up short of our guidance that we gave at the start of the quarter, we're making positive strides by further improving organizational efficiency, adding a number of new customers and by releasing significant new products," added Olin.
-- Released a number of new versions of key products including PrinterSite Internal, a web-based sales force automation tool to enhance communication between the printer's sales force and internal staff and PrintSmith Site, an electronic storefront for print shops and small commercial printers. We also launched into general release a new internationalized version of our Hagen OA enterprise resource planning (ERP) application.
-- Expanded our European penetration by signing contracts with leading printers in the U.K. and France.
-- PrintFlow, our dynamic scheduling solution, was recognized by the Graphic Arts Technical Foundation (GATF) as one of the most significant new technologies in the print industry.
-- Completed our previously announced corporate reorganization, which resulted in a reduction in workforce of approximately 40 employees and an annual cost savings of approximately $2.5 million. The Company took a $525,000 restructuring charge in the third quarter to cover the costs of severance and other expenses related to the restructuring.
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