Fourth quarter and fiscal year 2000 net loss applicable to common stockholders was $29.0 million and $122.7 million, respectively, which excludes non-cash charges, losses from the EncrypTix subsidiary, and restructuring and write down charges. On a per share basis, the equivalent net loss for the fourth quarter and fiscal year 2000 was $0.60 and $2.62 per share based on the weighted average common shares outstanding of 48.4 million and 46.9 million, respectively. Cash and short-term investments as of December 31, 2000 was $233 million, or $4.81 per share, excluding cash in the EncrypTix subsidiary.
The initiatives we’ve put in place in the fourth quarter of year 2000 and first quarter of year 2001 have put us in an even stronger position to achieve our financial goals of profitability and positive cash flow, said CEO Bruce Coleman. Moving forward, we plan to implement a number of additional changes that will enable us to capitalize on our streamlined business model, talented employees, strong financial position and category leading customer base. Our priority is to grow our business and deliver shareholder value.
For fiscal year 2001, Stamps.com is expecting revenues of approximately $23 million, which represents growth of 60 percent over fiscal year 2000 revenues. In addition, the company expects its year 2001 cash burn rate to be $20-25 million on a continuing operations basis; down over 80 percent from Year 2000 total cash burn. Stamps.com will achieve this through its February 6, 2001 reduction in its work force, more focused and cost-efficient marketing spend, and other cost-cutting programs. The reduction in work force alone is expected to result in cost savings of approximately $20-25 million annually. Stamps.com expects to take a one-time charge related to the restructuring during the first quarter of 2001.
In addition, Stamps.com currently expects to decrease its 2001 sales and marketing and promotions expenditures by approximately $60 million from year 2000 levels to $15 million for year 2001. Sales and marketing expenditures will be focused on acquisition of higher revenue Power Plan customers and savings will be achieved through renegotiation or termination of fixed payment partner relationships. In addition to decreasing sales and marketing costs, Stamps.com plans to raise its monthly minimum price for all existing simple plan customers to $4.49/month during the second quarter of year 2001.
SOURCE: COMPANY PRESS RELEASE
