iPrint Reports Q2: Continues to Examine Business & Financing Options
Press release from the issuing company
SANTA CLARA, Calif., Aug. 13, 2002 -- iPrint Technologies, inc, a leading supplier of online and offline marketing and customized branding solutions, today announced revenues of $11.9 million for the second quarter of 2002, the same as the first quarter of 2002, and compared to $2.5 million for the second quarter of 2001. The loss before cumulative effect of accounting change for the second quarter of 2002 was $2.4 million, or $0.04 per share, the same as the first quarter of 2002, and compared to a loss of $3.6 million or $0.12 per share, in the second quarter of 2001. The amounts for 2001 (prior year) do not include the results of Wood Alliance, Inc., which was acquired on October 31, 2001.
Pro-forma net loss, excluding cumulative effect of the accounting change, depreciation and amortization, amortization of deferred compensation, and corporate restructuring charges, for the second quarter 2002 was $1.1 million, or $0.02 per share, compared with a pro forma net loss of $1.4 million, or $0.03 per share, in the first quarter of 2002, and a pro forma net loss of $3.0 million, or $0.10 per share, in the second quarter of 2001. During the second quarter of 2002, the Company recorded $386,000 of restructuring charges.
On January 1, 2002, the Company adopted Statement of Financial Accounting Standards No. 142, ``Goodwill and Other Intangibles'' (SFAS No. 142). Under SFAS No. 142, the Company evaluated for impairment the $25.5 million in goodwill that resulted from the Company's merger in October 2001 with Wood Alliance, Inc. As a result of this evaluation, the Company has recorded a $23.3 million non-cash charge to reduce the carrying value of goodwill as of June 30, 2002, of which $18 million was recorded in the first quarter and $5.3 million was recorded in the second quarter. The impact on earnings per share for the cumulative effect of the accounting change is a $0.42 loss per share, including an approximate $0.32 loss per share for the first quarter and a $0.10 loss per share for the second quarter.
Cash and cash equivalents totaled $568,000 as of June 30, 2002, compared to $4.0 million in cash and cash equivalents and restricted cash as of March 31, 2002. The Company had no restricted cash as of June 30, 2002, compared to $2.4 million as of March 31, 2002. As of June 30, 2002, there were approximately 54.7 million shares of common stock outstanding.
The Company is currently in discussions with certain parties considering various business and financing options. No definitive agreements have been reached at this time and there can be no assurance agreements can or will be reached.
Second Quarter 2002 Highlights
-- iPrint's Wood Associates subsidiary expanded its global presence by aligning with Australia-based Hannebery Carroll. This agreement provides Wood with sales, distribution and customer service capabilities throughout Australia and New Zealand, and potentially new revenue opportunities in the United States. This was Wood's second global alliance. Previously, it teamed with England-based Incentive Group to service companies in England, Europe, Africa, and the Middle East.
-- On June 11, 2002, iPrint transferred its securities from the Nasdaq National Market to the Nasdaq SmallCap Market. It remains listed under the ticker symbol: IPRT.
-- Built and deployed three new online Company Merchandise Stores for DuPont-related businesses including DuPont Dow Elastomers, Standox(R), and Spies Hecker(R). These deployments are in addition to the two online shops already launched by iPrint for DuPont in Q1 2002. The online stores provide an easy and cost effective online source for DuPont branded promotional merchandise.
-- Launched two online Company Merchandise Stores for StorageTek. These online stores feature an array of promotional items with the StorageTek logo including embroidered apparel, tradeshow giveaways, executive gifts, travel bags, and golf-related items.
-- Selected as a preferred promotional merchandise vendor by Gear for Sports(R), a major supplier of branded sportswear to corporate America and a licensee of both the USGA and The PGA. This agreement enables Wood Associates to supply merchandise directly to GEAR for Sports' corporate customers.
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