February 23, 2001, 12:00 AM

Stamps.com revenue grows, but not as fast as losses

Stamps.com reports 26% growth in revenue over third quarter with positive gross margin, but $212.9 million in losses for the year.

Stamps.com announced that revenue in the fourth quarter of 2000 was $5.3 million, an increase of 26% over the third quarter of 2000; total revenue for fiscal year 2000 was $15.2 million. Fourth quarter and fiscal year 2000 net loss was $29.0 million and $122.7 million, respectively, which excludes non-cash charges, losses from the EncrypTix subsidiary, and restructuring and write down charges. Losses including those charges were $212.9 million on the year, up from $56.4 million in 1999.

"The initiatives we`ve put in place in the fourth quarter of year 2000 and first quarter of year 2001 have put us in an even stronger position to achieve profitability and positive cash flow," said CEO Bruce Coleman. "We plan to implement a number of additional changes that will enable us to capitalize on our streamlined business model, talented employees, strong financial position and category leading customer base."

For fiscal year 2001, Stamps.com is expecting revenues of approximately $23 million, which represents growth of 60% over 2000. In addition, the company expects its 2001 cash burn rate to be $20 million to $25 million on a continuing operations basis; down over 80% from 2000 total cash burn. Stamps.com will achieve this through its Feb. 6, 2001 reduction in its work force, more focused and cost-efficient marketing spend, and other cost-cutting programs. Stamps.com currently expects to decrease its 2001 sales and marketing and promotions expenditures by approximately $60 million from 2000 levels to $15 million for year 2001. Sales and marketing expenditures will be focused on acquisition of higher revenue Power Plan customers and savings will be achieved through re-negotiation or termination of fixed payment partner relationships. The company maintains its earlier estimates of becoming cash flow positive in the first quarter of fiscal year 2002.

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