EXHIBIT 99.2
FOR IMMEDIATE RELEASE
Stamps.com Media Contact:
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Seth Oster
Sr. Director of Corporate Communications
(310) 581-7542
(310) 962-4117 (cell)
soster@stamps.com
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Stamps.com Investor Contact:
- ----------------------------
Ken McBride
Sr. Director of Finance
(310) 582-7552
ir@stamps.com
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STAMPS.COM PASSES 10,000 CUSTOMERS; REPORTS THIRD
QUARTER 1999 EARNINGS
Santa Monica, Calif. (October 28, 1999) - Stamps.com (Nasdaq: STMP), the leader
in Internet Postage, today announced that it passed the 10,000 customer mark
earlier this week. Stamps.com also reported an operating loss of $14.4 million
for the third quarter ended September 30, 1999. The third quarter loss is
consistent with Stamps.com's continued investment in its technology, and its
accelerated investment in marketing ahead of its October 22, 1999 national
launch.
Net loss applicable to common shareholders was $13.7 million, or $0.40 per
share, based on the weighted average number of 34.1 million common shares
outstanding. Excluding the non-cash deferred compensation charge of $1.05
million, net loss would have been $12.6 million, or $0.37 per common share.
"Stamps.com has reached several milestones as it enters into the fourth
quarter," said Stamps.com CEO John Payne. "The national launch of our service
will revolutionize the way small office and home office users buy and use
postage by providing a convenient and cost-effective solution. Our portfolio of
strategic relationships has grown to include IBM, 3M, Lotus, and ZDNet, and we
greatly expanded our relationship with AOL. In addition, the recent agreement
to acquire iShip.com has doubled Stamps.com's market opportunity and has
positioned Stamps.com to become the leader in Internet shipping and mailing
services."
--more--
Stamps.com passes 10,000 customers; Reports Third Quarter 1999 Earnings
2-2-2
Recent Events
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October 25, 1999 -- Stamps.com announced the appointment of CEO John Payne to
the additional position of chairman of the board. In addition, Stamps.com
announced the appointment of postal industry veteran Loren Smith as president
and chief operating officer.
October 25, 1999 - Stamps.com announced that it has agreed to acquire privately-
held iShip.com, a leading provider of Internet-based shipping technology. The
acquisition will establish Stamps.com as the only online service that will be
able to offer small business, consumer, and corporate enterprise customers a
single source for all their mailing and shipping needs.
October 22, 1999 - Stamps.com announced the nationwide availability of its
Internet Postage service, becoming the only company to enable consumers and
businesses to print postage any time using just a computer, printer, and
Internet connection.
October 21, 1999 - America Online, Inc. (NYSE: AOL), the world's leading
interactive services company, and Stamps.com announced a broad distribution and
marketing alliance that will make Stamps.com the exclusive provider of Internet
Postage on AOL, Netscape, and CompuServe branded CD-ROMs, giving millions of
small business customers access to Stamps.com software. AOL will also make a
multi-million dollar investment in Stamps.com.
October 18, 1999 - Stamps.com announced that Bob Newhart, the beloved star of
such hit television shows as "The Bob Newhart Show" and "Newhart", is the
company's new spokesperson. Newhart will star in an innovative television and
print advertising campaign for Stamps.com that launches in select markets before
rolling out nationally at the end of the year.
October 12, 1999 - Stamps.com and International Business Machines (IBM), a
leading manufacturer and developer of hardware and software solutions (NYSE:
IBM) announced a marketing and distribution alliance that will bring Stamps.com
service to over one million
-more
Stamps.com passes 10,000 customers; Reports Third Quarter 1999 Earnings
3-3-3
customers who are members of the IBM Owner Privileges Program, a unique
membership program for IBM Aptiva PC and Thinkpad i Series system owners.
September 30, 1999 - Stamps.com announced a partnership with 3M (NYSE: MMM) and
unveiled details of its alliances with ZDNet (NYSE: ZDZ) and Lotus Development
Corp, the developers of Lotus Organizer, an industry-leading Personal
Information Manager. Together the three partnerships continue to expand access
to Stamps.com online service among small businesses and consumers.
About Stamps.com
Founded in 1996, Santa Monica-based Stamps.com is the only commercially approved
true Internet Postage service. The company's innovative technology eliminates
the need for specialized hardware by giving customers the flexibility to print
postage over the Internet - securely, accurately and fast. Through partnerships
with major companies including America Online, IBM, Microsoft, Office Depot,
Quicken.com and 3M, Stamps.com has tremendous reach into the small office/home
office and consumer markets. More information about the company can be found at
www.stamps.com.
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###
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: This release may contain forward-looking statements that involve risks and
uncertainties. Important factors, including the Company's ability to integrate
acquired companies and its ability to meet future capital requirements, could
cause actual results to differ materially from those in the forward-looking
statements are detailed in filings with the Securities and Exchange Commission,
made from time to time by Stamps.com, including its Form 10-Q for the quarter
ended June 30, 1999, and Stamps.com's prospectus, related to its initial public
offering, that was filed with the SEC on June 25, 1999.
Internet Postage, Stamps.com and the Stamps.com logo are trademarks of
Stamps.com Inc. All other brands and names are property of their respective
owners.
STAMPS.COM INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months
Ended
-------------------------------------
September 30, September 30,
1999 1998
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Revenues.................................. $ -- $ --
Costs and expenses:
Research and development................ 2,370,848 292,382
Sales and marketing.................... 7,640,454 --
General and administrative............. 4,412,467 513,959
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Total costs and expenses............ 14,423,769 806,341
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Loss from operations...................... (14,423,769) (806,341)
Other income (expense):
Interest expense........................ (40,269) (4,349)
Interest income......................... 766,044 1,732
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Net loss.................................. $(13,697,994) $ (808,958)
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Basic and diluted net loss per share...... $ (0.40) $ (0.17)
============ ===========
Pro forma basic and diluted net loss per
share.................................... $ (0.40) $ (0.07)
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Weighted average shares outstanding used
in basic and diluted per-share
calculation.............................. 34,101,500 4,897,500
Weighted average shares outstanding used
in pro forma basic and diluted
per-share calculation.................... 34,101,500 10,984,700
BALANCE SHEETS
September 30, December 31,
1999 1998
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(unaudited)
ASSETS
Current assets:
Cash and cash equivalents............................................. $61,198,260 $ 3,470,207
Prepaid advertising................................................... 6,531,018 --
Prepaid expenses...................................................... 684,495 48,118
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Total current assets.................................................... 68,413,773 3,518,325
Property and equipment, net............................................. 5,339,565 670,301
Other assets............................................................ 432,138 237,193
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Total assets............................................................ $74,185,476 $ 4,425,819
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LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Total current liabilities............................................... 7,033,444 2,133,525
Capital lease obligations, less current portion......................... 500,214 265,070
Commitments
Redeemable preferred stock............................................ -- 5,978,344
Total stockholders' equity (deficit).................................... 66,651,818 (3,951,120)
----------- -----------
Total liabilities and stockholders' equity (deficit).................... $74,185,476 $ 4,425,819
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