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Printcafe Reports Q1 Results: Sales Up 22%, Expenses Down 30%

Press release from the issuing company

May 31, 2002 -- (WhatTheyThink.com - by WTT columnist Gail Nickel-Kailing) -- Printcafe Software has reported 2002 first quarter results in their most recent S-1 amendment dated May 20th. The company is in the midst of their "quiet period" which occurs between the filing of an S-1 for an Initial Public Offering (IPO) and the actual date the shares are sold. WhatTheyThink.com created an unofficial quarterly snapshot, similar to those provided by public companies to their shareholders. For the first quarter of 2002, Printcafe Software provided unaudited financial results indicating revenues of $11.715 million and gross profit of $9.034 million. Operating expenses for the period were $17.376 million resulting in a net loss from operations of ($8.342). EBITDA, which does not take into consideration other expenses like interest, depreciation, amortization, stock-based compensation and warrants, and restructuring charges, was $270,000, showing positive results. Comparatively, all were an improvement over the same period in 2001. Printcafe’s revenues were up 22.5% from $9.561 million, gross profit was up 41.2% from $6.395 million, and operating expenses dropped 30.5% from $25.020 million. Net loss from operations for Q1 2002, declined more than 55% from a loss of ($18.625 million). Gross profit improved from 67% in Q1 2001 to 77% in Q1 2002. Sales and marketing expenses declined 45%, research and development expenses fell 27.7%, and general and administrative expenses decreased 42.3% over the same period last year. As of March 31, 2002, the company had cash and cash equivalents of $3.678 million, down from $8.648 million at the end of 2001. The May 20 S-1A filing should help Printcafe show potential investors a trend of increasing revenue and lower expenses. If Printcafe’s IPO is postponed due to market conditions, the company would most likely pursue other funding sources including private placements and additional equity investments by current investors, such as Creo. On February 13, Printcafe filed to sell up to $75 million in common stock. Proceeds will be used to pay $34.5 million of their debt and general operational expenses. The offering will place about 33% of the 22.7 million shares outstanding into the public market. This would suggest a market capitalization of up to $200 million. Underwriters listed in the S-1 are UBS Warburg, Robertson Stephens, U.S. Bancorp Piper Jaffray and McDonald Investments Inc. Printcafe plans to be listed on the Nasdaq under the symbol PCAF. Printcafe's applications are installed in 8,000 facilities worldwide by over 4,000 printer and print buying customers, including 24 of the 25 largest printing companies in North America and over 50 companies in the Fortune 1000.