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myPhotopipe.com Reports Third Quarter Operating Results
Nov 13, 2007 (08:11 AM EST)
ATLANTA, Nov. 13 /PRNewswire-FirstCall/ -- myPhotopipe.com, Inc. , a web-based online provider of digital photo processing and related services, today announced its operating results for the third quarter and first nine months of 2007.
(Logo: http://www.newscom.com/cgi-bin/prnh/20061006/CLF033LOGO )
For the three months ended September 30, 2007, revenues increased 29% to $388,162, compared with revenues of $301,560 in the third quarter of 2006. Net income totaled $8,039 in the third quarter of 2007, versus a net loss of ($127,104) in the three months ended September 30, 2006.
For the nine months ended September 30, 2007, the Company's revenues rose 63% to $997,972, compared with revenues of $613,492 in the first nine months of 2006. Year-to-date results for 2007 included nine months of operating results from QC GalleryWorks, which was acquired in June 2006, whereas nine- month results for 2006 included only four months of operating results from the acquired company. The Company reported a net loss of ($43,663) in the first nine months of 2007, versus a net loss of ($250,807) in the nine months ended September 30, 2006.
"We are very pleased to report our second consecutive quarter of profitability, along with a substantial reduction in net loss for the first nine months of the current year," noted L. Douglas Keeney, Chief Executive Officer of myPhotopipe.com, Inc. "Over the past two years, we have made significant investments in marketing, infrastructure and production, and we believe that we are now beginning to realize the benefits from those investments. The Company is substantially more efficient than it was a year ago. As an example, we were able to comfortably deliver record sales in each month during the third quarter with fewer employees than in the prior-year period."
"Our marketing activities have continued to generate positive results, with more than 10,000 prospective customers 'bookmarking' our website and over 4,000 prospective customers downloading our remote order entry system software (myPhotopipeROES) during each month in the third quarter," continued Keeney. "Taken together, these 30,000-plus bookmarks and approximately 12,000 downloads continued to grow the universe of myPhotopipe.com prospects. We believe that many of our first-time customers are derived from this pool of prospects and that our continued strong growth in first-time customers has allowed our Company to overcome traditional seasonality in sales during the course of 2007."
"We believe our improved marketing efficiencies are reflected in the growth of our average order size. By continuously refining our online advertising, magazine buys and search engine placements, we have been able to more effectively target the professional and serious amateur photographer community. We believe the upward trend in our average purchase reflects the gradual reduction of 'snapshot' photographers and 'grazers' in our customer mix."
"We also believe our emphasis on new products and new technologies is contributing to our growth," added Keeney. "During the third quarter, we launched an exclusive line of bordered panoramic prints, and we became the first national lab to introduce a high end, breakthrough paper developed by Fuji called Fuji Crystal Archive Pearl. Our quick adoption of Pearl -- an emulsion-based paper -- clearly communicated to our target customers that myPhotopipe.com is committed to bringing new products to the market as quickly as possible."
The Company also noted that its PRPrintsPro application has enjoyed excellent market acceptance. PRPrintsPro simplifies the surprisingly complex process of creating and ordering prints that will be autographed by celebrities, public officials or professional athletes. This application, which was developed in part to service the Company's contract with the Department of Homeland Security, is now being used by the Atlanta Falcons, the Tampa Bay Buccaneers, the Dallas Cowboys, the New York Giants and the Tennessee Titans; by clubs in the NBA and Major League Baseball; and by celebrities, along with their manages and agents. The Company believes that new sports teams and clubs will be added to the roster of users as the rollout of PRPrintsPro continues.
"Shortly after the end of the third quarter, we publicly announced our partnership with iStockphoto, a company that has revolutionized the stock photo business model by encouraging user-generated content and low-cost licensing," continued Keeney. "iStockphoto was financially backed by some of the best venture capital firms in Silicon Valley and later acquired by Getty Images, a storied name in traditional stock photography and a company that trades on the New York Stock Exchange. myPhotopipe.com has been designated as the provider of prints for the more than one million users of iStockphoto's website. The successful conclusion of this year-and-a-half endeavor represents a point of pride for myPhotopipe.com that we hope our shareholders will recognize. We encourage investors to visit the site at www.istockphoto.com , become a member (membership is free), select a photo and notice myPhotopipe.com's branded logo near the 'Print' tab below the photo. This will illustrate the excellent visibility our Company has with iStockphoto users, who download an image from the website every 2.5 seconds. The rebranded iStockphoto website was officially launched on October 11, 2007."
In connection with the events and initiatives discussed above, myPhotopipe.com has invested in additional server capacity, ftp server capacity, and improvements to the Company's internal networking system. These enhancements are designed to speed the flow of orders and further increase the overall efficiency of the Company's Atlanta plant. Customer service and inbound customer call servicing was transferred to the Company's Charlotte plant during the third quarter.
About myPhotopipe.com, Inc.
myPhotopipe.com, Inc. is a web-based (2.0) online provider of digital photo processing, photo finishing, photo sharing, and related services. The Company's unique blend of 104 print options, combined with manual print inspections and professional color management, have positioned myPhotopipe.com as one of the fastest-growing providers of digital photography services for professionals and serious amateurs.
The Company is headquartered in Atlanta, Georgia, and its common stock is listed on the OTC Pink Sheets under the symbol "MPPC". Additional information is available on the Internet at www.myPhotopipe.com .
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934 that are subject to the "safe harbor" created by those sections. Such forward-looking statements are based upon current information and expectations regarding myPhotopipe.com, Inc. These statements speak only as of the date on which they are made, are not guarantees of future performance, and involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results could materially differ from what is expressed, implied, or forecast in such forward-looking statements.
myPhotopipe.com, Inc. assumes no obligation to update the information contained in this release. Any forward-looking statements in this press release may be materially impacted by any number of factors, any or all of which could have a negative impact on sales, operating results, financial and budgetary constraints. The statements made herein are independent statements by myPhotopipe.com, Inc. The inclusion or mention, if any, of third parties in this press release does not represent an endorsement of any myPhotopipe.com, Inc. products or services by any such third party.
Contact: L. Douglas Keeney, CEO, at (502) 419-5837 or via email at firstname.lastname@example.org or
R. Jerry Falkner, CFA, RJ Falkner & Company, Inc., Investor Relations Counsel
at (830) 693-4400 or via email at email@example.com (Financial Highlights Follow) myPhotopipe.com, Inc. CONSOLIDATED STATEMENT OF OPERATIONS (cents omitted, except per share amounts) Three months ending September 30, 2007 2006 Net revenues $388,162 $301,560 Cost of revenues 88,313 164,734 Gross profit 299,849 136,826 % of revenues 77.25% 45.37% Operating expenses Sales and marketing 75,040 100,552 Personnel 140,469 68,968 General and administrative 87,623 75,343 Total operating expenses 303,132 244,863 Income from operations (3,284) (108,037) % of revenues -0.85% -35.83% Interest expense 25,363 12,864 Other (income) expense, net (36,686) 6,204 Pretax profit 8,039 (127,104) % of revenues 2.07% -42.15% Provision for income taxes - - Net income $8,039 $(127,104) % of revenues 2.07% -42.15% Average shares outstanding 248,943,235 248,943,235 Net income (loss) per share $0.0000 $(0.0005) myPhotopipe.com, Inc. CONSOLIDATED STATEMENT OF OPERATIONS (cents omitted, except per share amounts) Nine months ending September 30, 2007 2006 Net revenues $997,972 $613,492 Cost of revenues 276,030 185,844 Gross profit 721,942 427,648 % of revenues 72.34% 69.71% Operating expenses Sales and marketing 98,811 207,992 Personnel 266,569 238,553 General and administrative 394,230 212,661 Total operating expenses 759,610 659,206 Income from operations (37,669) (231,558) % of revenues -3.77% -37.74% Interest expense 26,689 21,503 Other (income) expense, net (20,695) (2,254) Pretax profit (43,663) (250,807) % of revenues -4.38% -40.88% Provision for income taxes - - Net income $(43,663) $(250,807) % of revenues -4.38% -40.88% Average shares outstanding 248,943,235 248,943,235 Net income (loss) per share $(0.0002) $(0.0010) myPhotopipe.com, Inc. CONSOLIDATED BALANCE SHEETS (cents omitted, except per share amounts) September 30, 2007 2006 ASSETS Current assets: Cash and cash equivalents $84,162 $128,195 Accounts receivable, net of allowance 104,662 30,267 Prepaid expenses and other current assets 38,647 13,586 Total current assets 227,471 172,048 Property and equipment, net 348,751 156,092 Other assets 67,228 - Total assets $643,450 $328,140 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Current liabilities: Accounts payable $181,501 $112,539 Accrued liabilities 269,467 128,913 Current portion of notes payable 139,752 93,519 Total current liabilities 590,720 334,791 Notes payable, less current portion 537,640 374,078 Total liabilities 1,128,360 708,869 Stockholders' equity (deficit) Common stock, par value $0.001:800,000,000 shares authorized at September 30, 2006 and September 30, 2007 respectively; 248,943,235 and 248,943,235 shares issued and outstanding at September 30, 2006 and September 30, 2007 respectively 388,500 176,000 Additional paid-in capital 248,674 109,462 Accumulated equity (deficit) (1,122,084) (666,191) Total stockholders' equity (deficit) (484,910) (380,729) Total liabilities and stockholders' equity (deficit) $643,450 $328,140
CONTACT: L. Douglas Keeney, CEO, myPhotopipe.com, Inc., +1-502-419-5837, firstname.lastname@example.org; or R. Jerry Falkner, CFA, RJ Falkner & Company,Inc., Investor Relations Counsel, +1-830-693-4400,
Web site: http://www.myphotopipe.com/ http://www.istockphoto.com/