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VistaPrint Reports Revenue Jump of 66% in Q3

Press release from the issuing company

HAMILTON, Bermuda--April 26, 2006-- VistaPrint Limited, a 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 March 31, 2006, the third quarter of its fiscal year ending June 30, 2006. Total company revenue for the quarter was $41.6 million, an increase of 66 percent as compared to total revenue of $25.1 million for the same quarter of fiscal 2005. For the third quarter ended March 31, 2006, net income on a GAAP basis was $5.3 million, which is 12.7 percent of revenue, or $0.12 per share on a fully diluted basis. GAAP net income includes a $2.2 million charge related to share-based compensation and a $252,000 tax benefit associated with the reversal of a tax accrual related to a prior year tax return. On a non-GAAP basis, excluding the charge associated with share-based compensation and the one-time reversal of an income tax accrual, adjusted net income was $7.2 million, which is 17.3 percent of revenue, or adjusted earnings per share of $0.16 on a fully diluted basis. For the same quarter the prior year, which ended March 31, 2005, the Company achieved net income of $2.2 million, which was 8.9 percent of revenue. "We delivered another excellent quarter with strength in all areas of the business," said Robert Keane, president and CEO of VistaPrint. "Our strong operating results this quarter were driven by increased revenue growth, improved capacity utilization, favorable product mix and the timing of our spending initiatives." Third quarter fiscal 2006 highlights include: -- Average order values, including revenue from shipping, increased 2.9 percent in the third quarter of fiscal 2006 from the same quarter of the prior fiscal year to $30.16. -- Web site sessions increased by 59.7 percent in the third quarter of fiscal 2006 from the same quarter of fiscal 2005. -- Conversion rates were 5.2 percent in the third quarter of fiscal 2006, consistent with the same quarter in the prior year. -- Capital expenditures in the third quarter of fiscal 2006 totaled $7.0 million, including the installation of a fourth production line at the Company's printing facility in Windsor, Ontario. -- Revenue minus cost of revenue was 70.6 percent in the third quarter of fiscal 2006, compared to 59.8 percent in the same quarter of the prior fiscal year. -- Cash and marketable securities were $100.6 million at March 31, 2006, and the Company generated cash flow from operations of $8.9 million. VistaPrint continued to expand and improve its product line during the quarter. The Company launched a self-inking rubber stamp product in all 16 of its web sites. The rubber stamp product leverages VistaPrint's technology investments and reflects the implementation of the Company's strategy of standardizing, automating and integrating every step of the value chain. "Rubber stamps are a great example of how we are utilizing our proprietary technology to fundamentally change the rules of the game, by driving the cost to produce a rubber stamp to levels lower than others in the market," said Keane. "Stamps are not only a great customer acquisition product; they also offer tremendous cross-sell and repeat purchase opportunities, which we believe leads to a higher lifetime value of customers." During the quarter VistaPrint added 528,000 new customers to increase its overall customer base to more than 6.6 million. Revenue from repeat customers increased to 63 percent of revenue for the quarter. "We believe that our new customer additions and revenue from repeat customers attest to our ability to acquire and retain customers by continually investing in innovative technology and new products and services that broaden our product offering," said Keane.

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