PhotoWorks’ digital revenue grows 26% while total revenue declines 20%
PhotoWorks Inc., a web-based digital photo processing company, reported that digital revenue totaled $1.32 million in the second quarter ended March 31, up 26% from a year ago. PhotoWorks says it adjusted last year’s Q2 figures to reflect orders received in Q1 but not delivered until Q2. Digital revenue was 66% of total revenue, up from 54% in last year’s second quarter. Traditional film processing revenue totaled $700,000, representing a 41% decline from $1.2 million in the second quarter of last year.
Total revenue was $2.02 million, compared with $2.5 million in the second quarter of last year. The company reported a net loss of $1.4 million compared to net loss of $900,000 in the year ago quarter.
PhotoWorks reports that 63% of revenue, up from 55% last year, came from the sale of non-print products, such as customer-created books, cards and calendars, which have a higher margin than photo printing. Average revenue per order grew 6% to $27.14 from $25.72 a year ago. Average revenue per customer grew 12% to $42.99 from $38.52.
“PhotoWorks continued the strategy, unfurled in Q1, of transforming to a more community-oriented market approach,” says CEO Andy Wood. “Additionally, this quarter we launched new product introductions and upgrades, as well as exciting partnership arrangements that are expected to be rolled out in the coming quarters.”
Among them, PhotoWorks announced a partnership with Sea Mobile Enterprises. It will deliver technology under the SeaMobile web portal that initially will allow cruise-goers to create personalized photo books aboard ship, with a planned expansion to other products.
PhotoWorks’ web-based services allow PC and Mac users to create hardbound photo books, customized greeting cards, calendars, prints and other photography-sourced products straight from their computers.
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