Business News
myPhotopipe.com Reports 2007 Operating Results
Wednesday 02. April 2008 - Net Loss Reduced by 86% as Online Digital Photo Processing Revenues Rise 51%
myPhotopipe.com, Inc. (Pink Sheets: MPPC.PK), a web-based online provider of digital photo processing and related services, today announced its operating results for the quarter and year ended December 31, 2007.
For the three months ended December 31, 2007, revenues increased 32% to $462,780, compared with revenues of $351,502 in the fourth quarter of 2006. The Company reported a net loss of ($32,579) in the fourth quarter of 2007, versus a net loss of ($310,390) in the three months ended December 31, 2006.
For the twelve months ended December 31, 2007, the Company’s revenues rose 51% to a record $1,460,752, compared with revenues of $964,994 in the year ended December 31, 2006. Operating results for 2007 included twelve months of operating results from QC GalleryWorks, which was acquired in June 2006, whereas 2006 operating results included only seven months of operating results from the acquired company. The Company reported a net loss of ($76,241) in 2007, versus a net loss of ($561,197) in the previous year.
“We are very pleased to report a 51% increase in 2007 revenues for the year ended December 31, 2007, evidencing strong growth across all four quarters,” noted L. Douglas Keeney, Chief Executive Officer of myPhotopipe.com, Inc. “Moreover, we were able to achieve these revenue gains without the heavy losses often associated with a rapidly growing company, as evidenced in an 86% reduction in our net loss for the year. Despite a significant overhaul of our website, continuous upgrades at our plant, and upgrades to our digital tools and data distribution platforms, our net loss for 2007 totaled only ($76,241), compared with a net loss of ($561,197) in 2006.”
“While we are proud of our accomplishments at myPhotopipe.com during the past year, I should also make note of the strong growth trends within our industry — trends that have continued through the first quarter of 2008,” continued Keeney. “According to PMA data, the number of prints made from digital images increased 27% in 2007, when compared with the previous year. Owners of digital cameras are currently taking an unprecedented 25 to 50 million images every week. Considering that more than 32% of all new digital cameras sold in 2007 were high-end 8+ megapixel units, the quality of digital images has improved dramatically. Because we cater to professional and serious amateur photographers, we believe this trend towards high-end cameras bodes well for myPhotopipe.com: the better the digital image, the more likely it will be made into a print.”
“Two years ago we made it clear that we believed that the ease of Internet ordering and the convenience of home delivery would become the purchasing channel of choice for the digital photographer and that, unlike others in our space, we, as a company, would not divert capital to invest in retail kiosks or other in-store pick-up models. For the last two years, digital photographers have increasingly validated our vision, as online-ordering-with-mail-delivery has consistently outpaced the growth of other methods of ordering prints. Today, I am happy to report that year-end data again shows a third year of uninterrupted share gains for Internet purchasing with mail delivery. For the year ended December 31, 2007, online-ordering-with-mail-delivery was the fastest growing method for ordering prints — up 64% versus 2006 and now accounting for a 15% share of the total market. We have been, and we continue to be, a pure play in online digital photo processing.”
“As vibrant as our industry has been, we have even more reason to be proud of our Company’s accomplishments,” added Keeney. “Our sales and development teams helped myPhotopipe.com outpaced the industry’s growth rate in 2007 by recruiting many new customers during the year, including well known professional sports teams in the NFL, MLB and NBA. On average, we added more than 400 new customers each month last year, including clients as diverse as Rosetta Stone, Georgia Tech University, and UPS. For the entire year, our website was bookmarked more than 100,000 times, and over 40,000 copies of our ordering software were downloaded.”
“In October 2007, we publicly unveiled the initial roll-out of a print partnership with the iStockphoto division of Getty Images. Not only are we the exclusive provider of prints to this pioneering website that has more than two million users, but our logo and brand now appear on their photo search pages. More than 200 million images are served up on the iStockphoto website each month, with each search result showing the myPhotoprint.com logo in the ‘Print’ tab directly beneath. In marketing, this represents almost unprecedented exposure.”
“Looking forward, we expect to continue building out our infrastructure, expanding our suite of digital tools and templates, and aggressively pursuing strategic alliances, partnerships and supply contracts. We recently announced that the Department of Homeland Security has exercised its annual renewal option under our exclusive supply contract with this important cabinet-level federal agency. We will make further announcements of other exciting developments as they occur in coming months.”
“We have much to be thankful for. Our industry represents one of the bright spots in the economy and we are one of the shining stars in our industry,” concluded Keeney.