KIRKLAND, Wash. - ImageX.com, Inc. (Nasdaq: IMGX), the technology market leader in Web-enabled design and printing services, today reported record revenues of $18.5 million for the third quarter ended September 30, 2000, an increase of 457% compared with revenues of $3.3 million for the quarter ended September 30, 1999. Third quarter 2000 revenues were up 159% compared with revenues of $7.1 million for the quarter ended June 30, 2000. Revenues for the nine months ended September 30, 2000 were a record $31.2 million, a 373% increase over the same period last year. For the quarter ended September 30, 2000, the company reported a cash loss of $10.7 million, or ($0.41) per share, based on 26.1 million weighted average shares outstanding. For the same period last year, the company reported a cash loss of $5.2 million, or ($0.65) per share, based on 8.1 million weighted average shares outstanding. Including the non-cash items, the company's third quarter 2000 net loss was $14.3 million, or ($0.55) per share, beating the Thomson/First Call analyst consensus estimate of a third quarter net loss of ($0.92) per share. This represents a 900% improvement over the same period last year when the company reported a net loss, including the non-cash items, of $6.7 million, or ($3.67) per share. "The third quarter was a pivotal period for ImageX.com," said Rich Begert, president and chief executive officer. "We generated increased revenues from new and existing blue-chip corporate customers and made tangible progress in reducing our cash expenses as a percentage of revenues. If we measure cash losses as a percent of revenue, our third quarter net loss was roughly half that of our second quarter - in other words, we are operating nearly twice as efficiently." ImageX.com reported record gross profit, up 648%, of $6.3 million for the quarter compared with gross profit of $846,000 for the same prior-year quarter. Quarter-over-quarter gross profit increased by 166% compared with the second quarter of 2000. Gross margin (gross profit as a percentage of revenues) also improved to 34% for the third quarter of 2000 compared with gross margin of 25% for the same period last year. Total operating expenses before depreciation, amortization and write-off of in-process research and development totaled $17.9 million, or 97% of revenues, for the third quarter of 2000 compared with $11.8 million, or 165% of revenues, for the second quarter of 2000. Cash losses, which were running at 157% of revenues a year ago, fell to 58% of revenue in the September 2000 quarter. The company reported cash and cash equivalents of $51.1 million at September 30, 2000 compared with $60.2 million at June 30, 2000 and $18.3 million at December 31, 1999. "We continue to execute on our fundamental plan to achieve cash flow breakeven by the fourth quarter of 2001," said Robin L. Krueger, the company's chief financial officer. "We believe we made clear strides this quarter toward achieving that goal." "All of our business lines continued to show improvements in the third quarter," Begert added. "The number of new online customers continues to grow at a healthy rate, and we're expanding revenues from our existing customers. Furthermore, technology advances across the company continue to reinforce our competitive advantages. During the quarter, our flagship Corporate Online Printing Center added enhanced customer notification and production file generation features; the Extensis Products Group launched an innovative new ASP delivery model for its digital file-checking software, Preflight Online; and our B2B integration technologies team developed new integration technologies that drive e-print procurement for the users of Commerce One, Inc.'s (Nasdaq: CMRC) and Ariba, Inc.'s (Nasdaq: ARBA) systems as well as other B2B integration solutions. Broader acceptance of B2B e-procurement platforms makes it easier for new customers to see the value in our solution." "We believe our accomplishments this quarter reinforced our leadership position in online print procurement and helped us gain significant traction with customers and vendors in the $300 billion commercial printing marketplace. ImageX.com's unique operating model offers proprietary technology that supports the entire print workflow-from design, to procurement, to production, to delivery," said Begert. ImageX.com's Corporate Online Printing Center added 31 new corporate relationships during the third quarter, for a total customer count of 318. Customers added during the third quarter include: Ariba, Inc; four new divisions of GE Capital; GMAC Commercial Mortgage, a wholly owned subsidiary of GMAC Commercial Holding Corp.; Northrup Grumman Corp.; SYSCO Corp., the largest food service marketer and distributor in North America; and Textron Fastening Systems, a $2.2 billion unit of Textron, Inc. ImageX.com is now serving 31 Fortune 1000 customers online. Order volume for the third quarter of 2000 increased 40%, to over 31,000 items from approximately 22,000 items for the period ended June 30, 2000, (adjusting for a one-time event in Q2). The number of customized products on ImageX.com's customer Web sites increased by approximately 25%, to nearly 4,100 at September 30, 2000. In addition, 37 new customized corporate Web sites went live in the third quarter. The company also opened sales offices in St. Louis and Austin, Tex., expanding the company's presence to 24 major markets nationwide at September 30, 2000. In addition, the ImageX.com team expanded to approximately 790 members as of the end of the quarter. During the quarter, the company released enhancements to its Corporate Online Printing Center e-procurement system to make ordering, managing and producing printed materials even easier. New features include an active notification function, which automatically emails the administrators notices of new, modified, deleted, released and time-sensitive orders; online fulfillment services; and order dispatcher, which allows further flexibility and automation of file generation and transfer. During the third quarter, the company's Extensis Products Group launched the first-ever Web-based digital file-checking software, Preflight Online. This patent-pending, subscription-based technology allows corporate customers to save time and money by automatically checking digital files for print production errors prior to submission to production. Customers such as AP AdSEND, the digital advertising delivery service of The Associated Press, which delivers approximately 1.5 million ads a year, can now inspect their digital files online, and send digital ads for immediate printing via Extensis. The Extensis Products Group also continued to expand its worldwide corporate user network of its Suitcase product, a font management technology, and its Portfolio product, a digital asset management technology. New customers in this quarter included the magazine division of Time Inc., Hasbro, Inc., Target Stores, Enron Corp., HomeBase and the U.S. Navy. In the third quarter, the company's B2B integration technologies team successfully completed the Commerce One's controlled release of "RoundTrip" catalogue interface and development of Ariba's "PunchOut" catalogue interface. This team, devoted solely to corporate e-commerce platform and network service issues, has completed a proprietary technological infrastructure that enables ImageX.com's systems to interface with and support a wide range of B2B integration technologies, including XML, EDI and OBI standards. ImageX.com is currently one of only a select few suppliers positioned to support corporations in their efforts to integrate their suppliers through various e-procurement platforms. "We believe ImageX.com's B2B integration module is important because more corporations are gravitating to online sourcing solutions and will need suppliers who can support these platforms," said Begert. In the third quarter, PrintBid.com recognized revenue for the first time from its newly implemented vendor-based subscription service. In addition, registered print buyers rose 88%, to 12,300, and registered print vendors increased to 4,650 in PrintBid.com's, online marketplace for custom print jobs that links print buyers and commercial printers. The number of user sessions also grew to 72,000 from 50,000 during the second quarter, a 46% increase. Creativepro.com shows leadership as a vertical portal. Creativepro.com, the company's community web site for creative professionals, saw the number of unique visitors increase, quarter over quarter, by 36% to over 315,000 visitors. The number of referrals from search engines increased from the second quarter to the third quarter by 145% to 217,000 referrals and page views increased by 25% to more than 2.4 million for the quarter.