DigitalPost Interactive Reports Second-Quarter 2009 Financial Results
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Continued Growth and Record Quarterly Revenue; Cash Flow Near Break Even
IRVINE, Calif., Aug. 17 /PRNewswire-FirstCall/ -- DigitalPost Interactive,
Inc. (OTC Bulletin Board: DGLP), www.dglp.com, a leader in web-based
interactive digital media applications, reported financial results for the
three months ended June 30, 2009.
DigitalPost Interactive Chief Executive Officer Michael Sawtell commented:
"During the second quarter of 2009 we continued to grow our top line revenue
and came within $2,700 of 'break even' on a cash basis. This is a result of
our ongoing efforts to increase operational efficiencies while continually
adding new contracts to our business pipeline."
Second-Quarter 2009 Financial Highlights
--Total revenue for second-quarter 2009 rose more than 161% to $376,400, from
$144,200 in second-quarter 2008. The increase was driven by more than 211%
growth in subscriptions revenue, which was due to the Company's partnership
with Kiddie Kandids, and more than 126% growth in professional services
revenue. Growth of professional services revenue during second-quarter 2009
was due to higher activity by business partners seeking to enhance market
visibility via interactive media.
--Cash used in operations improved significantly to $2,700 for second-quarter
2009 as compared to $460,800 for the same period last year. The improvement
reflects the Company's ongoing effort to streamline operations while driving
more revenue through the growth of recurring subscriptions and through the
professional services contracts that have been awarded.
--Net loss for second-quarter 2009 narrowed to $424,200 from a net loss of
$1.5 million in second-quarter 2008. The net loss for second-quarter 2009
includes non-cash items of $168,300 in non-cash stock-based compensation,
$154,700 of non-cash amortization of debt discounts, $62,400 of non-cash
beneficial conversion liability and $38,900 of non-cash depreciation and
amortization. The net loss for second-quarter 2008 included non-cash items of
$1,007,800 in non-cash stock-based compensation, $103,600 of non-cash
amortization of debt discounts, and $19,200 of non-cash depreciation and
amortization.
Other Highlights
Revenue Growth: The Company's strategic marketing partnership with Kiddie
Kandids, which began during the fourth quarter 2008, continues to account for
most of the year over year revenue growth from retail subscribers. Revenue
from professional services for the B2B (business-to-business) market has
become a major contributor as well to quarterly revenues:
Revenues from: Second- Second- Six Six
Quarter Quarter Months Months
2009 2008 2009 2008
--------- ---------- --------- ---------
Subscriptions $ 183,900 $ 59,100 $ 390,600 $ 110,400
Professional
services $ 192,500 $ 85,100 $ 296,800 $ 85,100
-------- ------- -------- -------
Total $ 376,400 $ 144,200 $ 687,400 $ 195,500
-------- -------- -------- --------
On a sequential quarterly basis the increase of total revenue was $65,400 from
$311,000 for the first-quarter 2009 to $376,400 for the second-quarter 2009.
The increase was due to the Company's growth in professional service revenues
of $88,200 which was partially offset by a decrease in subscription revenues
of $22,800.
Cash Used in Operations: Net cash used by operating activities for the first
six months of 2009 declined to $64,900 from $873,000 for the first six months
of 2008. Due to continuing revenue growth and controlling operating expenses,
and with material progress toward quarterly positive cash flow, the Company
undertook no investing or financing activities for the second consecutive
quarter.
Subscriber Base Growth: The number of recurring subscribers rose to 15,288 at
June 30, 2009, a 237% increase from 4,541 at June 30, 2008. Recurring
subscribers include all of DigitalPost's B2B partners including Kiddie Kandids
and also subscribers from TheFamilyPost.com, which is DigitalPost's direct B2C
web property. Recurring subscribers were 15,288 as of June 30, 2009, an
increase from 4,541 recurring subscribers as of June 30, 2008. On a sequential
quarterly basis the increase of recurring subscribers from 15,171 at March 31,
2009 to 15,288 at June 30, 2009, was less than one percent, which the Company
believes is due to the seasonal aspect of the photography studio business.
Professional Services - Demand for custom interactive design services grew
during the second quarter of 2009. Businesses are increasingly adopting
digital media interactivity and sharing capabilities, and business services
(B2B) providers are also seeking interactive media platforms to re-brand and
offer business customers. During second-quarter 2009, the Company continued to
work on professional services contracts won earlier this year with two new
customers and a follow-up contract with an existing customer, a leading
Internet search and advertising Web site.
Sawtell added: "We expect revenue growth to continue in foreseeable periods.
The B2B market is proving to be a source of significant revenues and growth
potential. From a financial standpoint, we see the potential for achieving
positive quarterly cash flow this year, as our operating expenses remain under
control at reduced levels, yet we remain flexible and able to expand our
resources quickly to absorb additional business from our pipeline of potential
new contracts."
About DigitalPost Interactive Inc.
DigitalPost Interactive is a SaaS (Software as a Service) and application
provider that delivers B2B and B2C digital media-sharing solutions that are
both easy to offer and easy to use. The company's visually-stunning,
user-friendly Web 2.0 technology gives consumers a single, engaging place
online for permanently storing and sharing a lifetime of digital media and
memories, connecting with family and friends, and keeping organized in today's
digital world.
Completely scaleable and re-brandable, DigitalPost Interactive's technology
gives companies in the photo, travel, entertainment, sports, and other
vertical markets a fast and efficient way to offer dynamic Web 2.0 products
and services. This technology can create exciting new revenue streams for all
companies looking to monetize this emerging new Internet opportunity. For more
information about DigitalPost Interactive or its consumer site
TheFamilyPost.com, please visit www.dglp.com.
Safe Harbor Statement
This press release contains forward-looking statements that may be subject to
various risks and uncertainties. Such forward-looking statements are made
pursuant to the "safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995 and may include statements regarding our estimates, future
contracts, future financial performance or results of operations, including
the number of recurring subscribers, revenue growth, cost of revenues,
operating expenses, interest expense, net loss and cash flow. Unless otherwise
required by law, we undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise after the date of this press release. Additional
information concerning risks and uncertainties that may cause actual results
to differ materially from those projected or suggested in the forward-looking
statements may be found in Quarterly Reports on Form 10-Q and Annual Reports
on Form 10-K filed with the U.S. Securities and Exchange Commission.
SOURCE DigitalPost Interactive, Inc.
Thad Morris, Investor Relations, DigitalPost Interactive, Inc.,
1-866-492-3888, ir@dglp.com
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