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VistaPrint Sees 72% Revenue Increase in Q2

Wednesday, January 25, 2006

Press release from the issuing company

HAMILTON, Bermuda--Jan. 24, 2006-- VistaPrint Limited, the leading online supplier of high-quality graphic design services and customized printed products to small businesses and consumers, today announced its financial results for the quarter ended December 31, 2005, the second quarter of its fiscal year ending June 30, 2006. Total company revenue for the quarter was $36.4 million, an increase of 72 percent versus $21.1 million for the same quarter of fiscal 2005. For the second quarter of fiscal 2006 the Company achieved net income, after tax, of $5.5 million, or 15 percent of revenue, and earnings per share on a diluted basis of $0.13. In the quarter ended December 31, 2004, the Company achieved net income of $104 thousand, or 0.5 percent of revenues. "Q2 was exceptional; we exceeded all our goals," said Robert Keane, president and chief executive officer of VistaPrint. "Of particular note is that holiday-related products were a significant driver of our growth: up 138 percent year over year." This was the first full quarter where 100 percent of North American print orders were produced internally by VistaPrint. Careful planning resulted in a situation where the Company executed the transition to in-house production much better than originally predicted. As a result the Company achieved faster than expected margin improvement, as well as improvements in the quality of products and delivery times. "We are extremely pleased that for the quarter ended December 31, 2005, our revenue minus the cost of revenue was 68 percent and our operating profit was 15.5 percent," said Paul Flanagan, executive vice president and chief financial officer. "This rapid improvement in profitability levels is the direct result of the margin expansion that has been realized from moving all print production in-house in September of 2005." The Company also announced that Paul Flanagan, executive vice president and chief financial officer, has worked out a transition plan with VistaPrint that will fulfill Flanagan's desire to pursue operating positions in other companies. In order to ensure a smooth transition for VistaPrint, Flanagan has committed to remain with VistaPrint at least through the fiscal year ending June 30, 2006, and he has agreed to provide consulting services to VistaPrint through January 1, 2007. "As many of you may know, this is the second company Paul has taken public as a Chief Financial Officer, and he has also held a variety of executive and operational roles at other public and private companies," said Keane. "Our arrangement with Paul allows him to pursue his goals while assuring a smooth transition for VistaPrint. In the meantime, I look forward to continuing to work with Paul as our CFO during this transition period." Key financial metrics for the second quarter of fiscal year 2006 were as follows: -- Revenue bookings from repeat customers increased to 61 percent versus 57 percent in the second quarter of fiscal 2005. -- Average order values increased 4 percent from the same quarter of the prior fiscal year to $31.26. -- Web site sessions increased by 78 percent from the same quarter of fiscal 2005. -- Conversion rates fell to 4 percent compared to 4.4 percent in the second quarter of fiscal 2005. -- Capital expenditures in the second quarter of fiscal 2006 totaled $5.6 million, primarily related to the installation of a third off-set press at the Company's printing facility in Windsor, Ontario. -- Revenue minus cost of revenue was 68 percent versus 60 percent in the same quarter of the prior fiscal year. -- Operating margins increased to 15.5 percent of revenue versus 1.8 percent in the second quarter of fiscal 2005.

 

 

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