First quarter net loss from continuing operations was $9.1 million, which excludes non-cash charges, first quarter losses and a one-time gain from the Encryptix subsidiary, a charge related to the impairment of goodwill associated with the purchase of iShip.com, and restructuring and write down charges. On a per share basis, the equivalent continuing operations loss for the first quarter 2001 was $0.18 per share based on the weighted average common shares outstanding of 49.1 million. Cash and short-term investments as of March 31, 2001 was $213 million, or $4.34 per share, excluding any cash in the Encryptix subsidiary.
The initiatives we undertook in the fourth quarter of year 2000 and the first quarter of year 2001 have already begun to pay dividends in our improved gross margins and narrowed losses, said CEO Bruce Coleman. Moving forward, we plan to continue to streamline our costs while enhancing our revenue growth toward achieving our goal of profitability and positive cash flow.
For fiscal year 2001, Stamps.com continues to expect total revenues of approximately $23 million, which represents growth of 60% over fiscal year 2000 revenues. In addition, the company continues to expect its total year 2001 cash burn to be $20-25 million on a continuing operations basis; down over 80% from Year 2000 total cash burn. Stamps.com has already made good progress toward achieving its goals in the first quarter 2001. With its February 6, 2001 reduction in its work force, more focused and cost-efficient marketing spend, and other cost-cutting programs, Stamps.com used approximately $11 million in cash during the first quarter 2001 on a continuing operations basis and excluding one-time items; the comparable number in the fourth quarter 2000 was approximately $25 million.
For the first quarter 2001, total sales and marketing was $4.3 million compared with $13.6 million in the fourth quarter. Savings in sales and marketing have already been achieved through a focus on acquisition of higher revenue Power Plan customers and through renegotiation or termination of fixed payment partner relationships. Starting in the second quarter of 2001, all partners will only be compensated on a pay-for-performance basis.
SOURCE: COMPANY PRESS RELEASE