iPrint Announces 2001 Results, Net Loss of $17.6 Million
Press release from the issuing company
SANTA CLARA, Calif., March 7, 2002 -- iPrint Technologies announced revenues of $10.7 million for the fourth quarter of 2001, up 135% from $4.5 million in the same period last year. iPrint's revenues for 2001 were $17.9 million as compared to $17.1 million for 2000. Net loss for the fourth quarter 2001 was $4.0 million, or $0.09 per share, compared with a net loss of $4.6 million, or $0.15 per share, in the third quarter of 2001, and a net loss of $7.2 million, or $0.24 per share, in the fourth quarter of 2000. Net loss for 2001 was $17.6 million, or $0.51 per share, compared with a net loss of $36.0 million, or $1.39 per share, during 2000.
The Company's results of operations reflect the combination with Wood Associates subsequent to the closing of the merger on November 1, 2001. The merger has been accounted for under the purchase method of accounting.
On a comparative basis, the net loss for the fourth quarter 2001 beat the First Call consensus estimate of a net loss of $0.11 per share by $0.02.
Net loss, excluding deferred compensation and restructuring charges, for the fourth quarter 2001 was $3.0 million, or $0.06 per share, compared with a net loss of $3.4 million, or $0.11 per share, in the third quarter of 2001, and a net loss of $7.0 million, or $0.23 per share, in the fourth quarter of 2000.
"Since completing the merger on November 1, 2001, we have been aggressively cutting our operating costs to reduce cash burn,'' stated Monte Wood, President and CEO of iPrint Technologies, inc. "We have recently reduced our workforce by 28% and cut our quarterly operating expense run rate by $2 million. The majority of these savings are not reflected in our Q4 numbers. We believe that these actions combined with our planned revenue growth should allow us to reach our goal of turning cash flow positive in the second half of 2002.''
Cash and cash equivalents, short-term investments and restricted cash totaled $6.8 million as of December 31, 2001, compared to $12.0 million as of September 30, 2001. Restricted cash totaled $2.4 million as of December 31, 2001, compared to $356,000 as of September 30, 2001. As of December 31, 2001, there were approximately 54.6 million shares of common stock outstanding.
Restructuring charges of $847,000, recorded in the fourth quarter 2001, and charges of $2.2 million, recorded for the year ended December 31, 2001, related primarily to lease space reductions and severance payments to terminated employees. As of December 31, 2001, $880,000 remains to be paid.
Upon the adoption of the new FASB accounting standards in 2002, the Company believes a non-cash intangibles impairment charge will be required, which management currently estimates will range between $15 million and $23 million.
Other Fourth Quarter 2001 Highlights
* Completed merger with Wood Associates on November 1, 2001.
* Continued to restructure the company with the objective of bringing operating expenses in line with current revenue expectations.
* Transitioned all Wood Associates' online corporate stores to the iPrint technology platform and launched new online stores for customers which include BP, Charles Schwab, Chevron Phillips Chemical Company, Compaq, Dupont, Interwoven, Sun Microsystems, Sybase, US Marine, the U.S. Ski & Snowboard Association, and Washington Mutual.
* Announced the availability of iPrint's CustomPrint(tm) workflow technology. CustomPrint is a completely integrated end-to-end workflow solution that enables iPrint buyers and suppliers to manage print and promotional buying workflow. This streamlines the procurement process, increases cost savings, and improves efficiency for its corporate customers.
The Company believes its Q1 2002 revenues (traditionally Wood Associates' slowest quarter) will be approximately equal to Q4 2001 revenues, with total revenues for the year 2002 projected at $55 million.
Assuming that the Company is able to achieve its revenue goals, the Company expects to turn cash flow positive during the second half of 2002.
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