Revenues Rise 26%, Gross Profit Margins Expand to 74% ATLANTA, May 16
ATLANTA, May 16 /PRNewswire-FirstCall/ -- myPhotopipe.com, Inc.
(Pink Sheets: MPPC), a web-based online provider of digital photo processing
and related services, today announced its operating results for the first
quarter of 2008.
(Logo: http://www.newscom.com/cgi-bin/prnh/20080325/CLTU023)
For the three months ended March 31, 2008, revenues increased 26% to
$366,329, compared with revenues of $289,869 in the first quarter of 2007.
Gross profits increased 42% to $270,373 (73.8% of revenues), versus $189,864
(65.5% of revenues) in the prior-year quarter. The Company reported a net
loss of ($73,705) in the most recent quarter, versus a net loss of ($15,753)
in the three months ended March 31, 2007.
"myPhotopipe.com continued to post excellent gains in revenues during the
most recent quarter, with an increase of 26% over prior-year levels," stated
L. Douglas Keeney, Chief Executive Officer of the Company. "That said, a
significant design initiative related to the overhaul of our web site made
unexpectedly good progress in January, and we elected to accelerate its
launch, which in turn necessitated a concurrent increase in our search engine
buys. Accordingly, we realized a slightly higher loss for the period than we
anticipated, but we have been extremely pleased with the initial results from
the new web site, as measured in a sharp increase in customer acquisitions,
excellent industry notices, and continued revenue growth during April."
"New product introductions continued at our historical pace, which by any
measure is rapid and well accepted by the market. Our gallery wraps and
mounted products have been well received by customers, as has our pioneering
PRPrintsPro platform that is now being used by many professional sports
organizations. myPhotopipe.com's portfolio of greeting cards, a significant
vein of revenue that we intend to vigorously mine, has increased by several
hundred SKUs since the beginning of the year. Our project to allow local
stationery stores to access more than 600 photo greeting cards appears to be
progressing towards a beta in the second quarter. And finally, our industry
data couldn't be better. Owners of digital cameras are making prints at
historically high and growing levels, and online ordering with direct mail
delivery is the channel of fulfillment that is expanding significantly faster
than retail, kiosks or any other method of purchasing prints."
"We're an online lab serving the needs of professional and serious amateur
photographers," continued Keeney. "This is a segment not all of us
understand, so allow me this final thought. According to a recent InfoTrends
study, professional photographers are themselves a $5 billion industry. They
shoot pictures and earn 80%+ of their mean annual revenues of $130,000 by
selling photographic prints. What's our value proposition to them? In a
nutshell it is as follows. Because they waited for high-end digital cameras,
professional photographers were slower than the consumer to switch to digital
technology. But now, the switch is underway in earnest. Ironically, at the
very same time these photographers are 'going digital', more than half of
their local camera stores, where they went for photo processing, have closed,
so they are going online to find a new photo processor. What do they see?
Photo mousepads and photo coffee mugs and photo t-shirts -- all sorts of
'cute' ways to share your photos. That's not what professionals are looking
for. They're searching for a lab that focuses on making a top notch,
professional print at a price that is competitive to any lab in the nation.
That's a description of myPhotopipe.com. That's our value proposition. Using
our products our customers can make a living. That's a wonderful position to
be in. We believe we're in the right place at the right time, serving a
lucrative slice of the digital photography market during a period of extensive
brand switching. With persistence and steadfastness, we will emerge as one of
the top brands in the business."
About myPhotopipe.com, Inc.
myPhotopipe.com, Inc. is a web-based online provider of digital photo
processing, photo finishing, photo sharing, and related services. The
Company's unique blend of 1000 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 http://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
dougk@myphotopipe.com
or
R. Jerry Falkner, CFA, RJ Falkner & Company, Inc., Investor Relations Counsel
at (830) 693-4400 or via email at info@rjfalkner.com
(Financial Highlights Follow)
MYPHOTOPIPE.COM
CONSOLIDATED STATEMENT OF OPERATIONS
(Cents omitted, except per share amounts)
ACTUAL ACTIVITY FROM OPERATIONS
Three months ending March 31,
2008 2007
Net revenues $366,329 $289,869
Cost of revenues 95,956100,005
Gross profit270,373189,864
% of revenues 73.81% 65.50%
Operating expenses 60,558 35,415
Sales and marketing 123,683 90,814
Personnel 158,720101,253
General and administrative342,961227,482
Total operating expenses(72,588) (37,618)
Income from operations
% of revenues -19.82%-12.98%
Interest expense 8,942 5,267
Depreciation - -
Amortization - -
Other (income) expense, net (7,826) (27,132)
Pretax profit (73,705) (15,753)
% of revenues -20.12% -5.43%
Provision for income taxes-
Net income $(73,705) $(15,753)
% of revenues -20.12% -5.43%
Average shares outstanding 248,943,235248,943,235
Net income (loss) per share$(0.0003) $(0.0001)
The accompanying notes are an integral part of these consolidated
financial statements
MYPHOTOPIPE.COM
CONSOLIDATED BALANCE SHEETS
(Cents omitted, except per share amounts)
March 31,
20082007
ASSETS
Current assets:
Cash and cash equivalents$ - $ -
Accounts receivable, net of allowance 107,144 85,993
Prepaid expenses and other current assets 40,663 4,507
Total current assets147,808 90,500
Property and equipment, net 264,271146,133
Other assets 64,648 12,666
Total assets $ $476,728 $249,298
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable $202,899 $178,501
Accrued liabilities 175,259216,034
Current portion of notes payable 135,393 86,721
Total current liabilities 513,550481,255
Notes payable, less current portion 469,817334,016
Total liabilities 983,367815,272
Stockholders' equity (deficit)
Common stock, par value $0.001; 388,500388,500
800,000,000 shares authorized at
December 30, 2006 and December 30,
2007 respectively; 248,943,235 and
248,943,235 shares issued and
outstanding at December 30, 2006
and December 30, 2007 respectively
Additional paid-in capital415,961153,461
Accumulated equity (deficit) (1,311,100)(1,107,935)
Total stockholders' equity (deficit) (506,639) (565,974)
Total liabilities and stockholders'
equity (deficit) $476,728 $249,298
The accompanying notes are an integral part of these consolidated
financial statements
SOURCE myPhotopipe.com, Inc.
