Welcome!

Microsoft Cloud Authors: Lori MacVittie, Elizabeth White, Yeshim Deniz, Serafima Al, Janakiram MSV

News Feed Item

PNI Digital Media Reports Fiscal 2013 First Quarter Financial Results

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/14/13 -- PNI Digital Media (TSX:PN)(OTCBB:PNDMF) ("PNI" or the "Company"), the leading innovator in digital media solutions for retailers, reported financial results for the fiscal 2013 first quarter ended December 31st, 2012 and discussed key operational developments for the quarter.

"In this past quarter 26% of all orders over our platform were for greeting and photo cards within our customers sites," said Kyle Hall, Chief Executive Officer of PNI Digital Media. "Our stationery and photo markets are merging quickly and we are well positioned to take advantage of this evolving market for personalized content as it extends itself into higher value cards and invitations while leveraging our retailers' large existing consumer bases. Furthermore, we saw record transactions from mobile devices fueled by our investment in new apps for both smart phones and tablets. This investment in mobile not only enabled us to drive incremental transactions but is also opening entirely new channels for our retailers as consumer behavior shifts towards mobile. Lastly, by using our recently announced platform API, any qualified software developer can add their photo app or photo product to our platform on their own, giving our platform an almost limitless range of product innovation for our retailers, and further positioning our platform as they key venue for retailers who want to drive high value transactions from personalized products."

Fiscal 2013 First Quarter Operational Highlights

--  Processed a record 6.9 million transactions during the quarter, a 3%
    increase from the same period last year 
--  Processed $103.5 million in online transactions over our platform on
    behalf of our retail partners, a 2.2% increase compared to the same
    quarter in fiscal 2012 
--  Set a new peak day record for transactions, conducting 270,000
    transactions in a single day 
--  Successfully launched a new platform API portal, enabling third parties
    to submit orders over the Company's platform, creating incremental
    transactions on behalf of the Company's retail clients 
--  Launched an all-new Android OS mobile app on behalf of the Company's
    retail clients, further extending the Company's mobile apps and
    solutions for its retail clients. The first implementation was with
    Tesco PLC 
--  Announced a new partnership with Aperion Inc. for the provision of
    premium unique themes and designs available only to retailers using the
    Company's platform 
--  The Company adopted a majority voting policy for elections of Directors

Fiscal 2013 First Quarter Fiscal Highlights

--  Revenue for the quarter of $6.6 million compared to $6.9 million in the
    first quarter of fiscal 2012. The decrease in revenue was predominantly
    due to a $0.4 million decrease in transaction fees 
--  Working capital increased to $4.9 million at December 31, 2012 from $4.8
    million at September 30, 2012 
--  Generated IFRS loss for the quarter of $0.3 million compared to $1.0
    million in income in the first quarter of fiscal 2012 
--  Non-IFRS adjusted EBITDA1 was $0.3 million compared to a non-IFRS
    adjusted EBITDA of $1.7 million during the first quarter of fiscal 2012.
    The reduced adjusted EBITDA in the current period was due in part to a
    large amount of capitalized personnel costs associated with the
    development of internal use software in the first quarter of 2012. In
    comparison, no internal development costs met the criteria for
    capitalization as internal use software in the first quarter of 2013 
--  The Company ended the quarter with $3.7 million in cash and cash
    equivalents and no debt

Conference Call

The company will host a conference call on February 14th, 2013 at 4:30 p.m. ET (1:30 p.m. PT) to discuss these financial results. PNI Digital Media's Chief Executive Officer Kyle Hall and Chief Financial Officer Cameron Lawrence will host the presentation, followed by a question and answer period.

Dial-In Number:     (888) 241-0394      
International:      (647) 427-3413      
Conference ID#:     89825016            

Institutional investors and interested participants should dial the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization.

PNI Digital Media will also provide a live webcast and slide presentation, which will be available on the Company's website at www.pnimedia.com/webcast. An archived replay of the webcast will be available for 45 days following the live event.

Consolidated Statements of Operations and Comprehensive Income (Loss)       
                                                                            
                                                    Three Months Ended      
                                                 December 31,   December 31,
                                                         2012           2011
                                              ------------------------------
                                                                            
Revenue                                           $ 6,555,984    $ 6,950,376
Cost of sales                                       2,923,203      2,591,569
                                              ------------------------------
Gross Profit (loss)                                 3,632,781      4,358,807
                                                                            
Expenses                                                                    
 Software development                               2,515,174      2,164,177
 General and administration                           973,695      1,093,029
 Sales and marketing                                  334,351        170,954
                                              ------------------------------
                                                                            
                                                    3,823,220      3,428,160
                                              ------------------------------
                                                                            
Profit (loss) from operations                       (190,439)        930,647
                                                                            
Foreign exchange gain (loss)                        (130,348)        105,286
Finance income                                          1,755            559
                                                                            
                                              ------------------------------
                                                                            
                                                    (128,593)        105,845
                                              ------------------------------
                                                                            
Profit (loss) before income tax                     (319,032)      1,036,492
                                                                            
Deferred income tax recovery (expense)                      -          3,731
                                              ------------------------------
Income tax recovery (expense)                               -          3,731
                                                                            
                                              ------------------------------
Profit (loss) for the period                        (319,032)      1,040,223
                                                                            
Other comprehensive gain (loss):                                            
                                                                            
 Cumulative translation adjustment                    182,263      (287,058)
                                              ------------------------------
                                                                            
Total comprehensive income (loss) for the                                   
 period                                           $ (136,769)      $ 753,165
                                              ------------------------------
                                              ------------------------------
                                                                            
Earnings (loss) per share                                                   
Basic                                                $ (0.01)         $ 0.03
Fully diluted                                        $ (0.01)         $ 0.03
                                                                            
                                                                            
Consolidated Balance Sheets                                                 
                                                                            
                                                                            
                                                 December 31,  September 30,
Assets                                                   2012           2012
                                              ------------------------------
                                                                            
Current assets                                                              
 Cash and cash equivalents                        $ 3,662,556    $ 4,611,824
 Accounts receivable                                5,192,134      4,253,541
 Prepaid expenses and other current assets            520,083        622,970
                                              ------------------------------
                                                                            
                                                    9,374,773      9,488,335
                                                                            
Property and equipment                              4,325,496      4,683,355
Deferred income tax asset                           5,252,291      5,222,603
Intangible assets                                      53,831          2,124
Goodwill                                              575,983        568,479
                                                                            
                                              ------------------------------
                                                                            
                                                 $ 19,582,374   $ 19,964,896
                                              ------------------------------
                                              ------------------------------
                                                                            
Liabilities                                                                 
                                                                            
Current liabilities                                                         
 Accounts payable and accrued liabilities         $ 4,063,083    $ 4,390,437
 Current portion of deferred revenue                  378,494        318,107
                                              ------------------------------
                                                                            
                                                    4,441,577      4,708,544
                                                                            
Deferred revenue                                      421,903        437,140
                                              ------------------------------
                                                  $ 4,863,480               
                                                   $4,863,480    $ 5,145,684
                                              ------------------------------
                                                                            
Shareholders' Equity                                                        
                                                                            
Share capital                                    $ 66,881,748   $ 66,817,352
Contributed surplus                                19,306,153     19,334,098
                                              ------------------------------
                                                   86,187,901     86,151,450
                                              ------------------------------
                                                                            
Deficit                                          (71,454,053)   (71,135,021)
                                                                            
Accumulated other comprehensive loss                 (14,954)      (197,217)
                                              ------------------------------
                                                                            
                                                 (71,469,007)   (71,332,238)
                                              ------------------------------
                                                                            
                                                   14,718,894     14,819,212
                                                                            
                                              ------------------------------
                                                 $ 19,582,374   $ 19,964,896
                                              ------------------------------
                                              ------------------------------
                                                                            
                                                                            
Non-IFRS Financial Measures                                                
                                                                           
                                                   Three Months Ended      
                                                December 31,   December 31,
                                                        2012           2011
                                             ------------------------------
                                                                           
Net profit (loss) in accordance with IFRS        $ (319,032)    $ 1,040,223
Amortization of property and equipment               381,842        404,775
Amortization of intangible assets                     17,542        265,331
Interest expense                                           -              -
Income taxes                                               -        (3,731)
Stock based compensation expense                      36,451         79,269
Unrealized foreign exchange loss (gain)              140,547       (95,672)
Loss on disposal of property and equipment               480              -
                                                                           
                                             ------------------------------
Adjusted EBITDA                                    $ 257,830    $ 1,690,195
                                             ------------------------------
                                             ------------------------------
                                                                           
Adjusted EBITDA per share - Basic                     $ 0.01         $ 0.05
Adjusted EBITDA per share - Fully Diluted             $ 0.01         $ 0.05
                                                                           
Weighted average shares outstanding - Basic       34,297,664     34,076,445
Weighted average shares outstanding - Fully                                
 Diluted                                          34,298,902     34,099,611

Notes:

1 - Non-IFRS Measures

The Company continues to provide all information required in accordance with IFRS, but believes evaluating its ongoing operating results may not be as useful if an investor is limited to reviewing only IFRS financial measures. Accordingly, the Company uses non-IFRS financial information to evaluate its ongoing operations and for internal planning and forecasting purposes. The primary non-IFRS financial measures utilized by the Company include adjusted EBITDA. Adjusted EBITDA is non-IFRS financial measure which the Company defines as net profit plus amortization, impairment, interest expense, tax expense, share-based compensation expense and unrealized foreign exchange loss (gain).

To supplement the Company's financial statements presented on an IFRS basis, we believe that these non-IFRS measures provide useful information about the Company's core operating results and thus are appropriate to enhance the overall understanding of the Company's past financial performance and its prospects for the future. These adjustments to the Company's IFRS results are made with the intent of providing both management and investors a more complete understanding of the Company's underlying operational results and trends and performance. Management uses these non-IFRS measures to evaluate the Company's financial results, develop budgets, manage expenditures, and determine employee compensation. The presentation of additional information is not meant to be considered in isolation or as a substitute for or superior to net (loss) earnings or net (loss) earnings per share determined in accordance with IFRS.

Currency:

All amounts are expressed in Canadian dollars. This notice is qualified in its entirety by reference to the Company's financial statements and accompanying Management Discussion and Analysis, which are accessible on the SEC'S website at www.sec.gov/edgar.shtml and on SEDAR at www.sedar.com.

About PNI Digital Media - Founded in 1995, PNI Digital Media operates the PNI Digital Media Platform, which provides transaction processing and order routing services for major retailers. The PNI Digital Media Platform connects consumer-ordered digital content, whether from online, in-store kiosks, desktop software or mobile phones, with retailers that have on-demand manufacturing capabilities for the production of personalized products such as photos, photo books and calendars, business cards and stationery. PNI Digital Media successfully generates millions of transactions each year for retailers and their thousands of locations worldwide.

Further information on our company can be found at www.pnimedia.com.

The statements that are not historical facts contained in this release are forward-looking statements that involve risks and uncertainties. PNI Digital Media's actual results could differ materially from those expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, changes in technology, employee retention, inability to deliver on contracts, failure of customers to continue marketing the online solution, competition, general economic conditions, foreign exchange and other risks detailed in the Company's annual report and other filings. Additional information related to the Company can be found on SEDAR at www.sedar.com and on the SEC'S website at www.sec.gov/edgar.shtml. The information contained herein is subject to change without notice. PNI Digital Media shall not be liable for technical or editorial errors or omissions contained herein.

The TSX has neither approved nor disapproved the information contained in this release. PNI Digital Media relies upon litigation protection for "forward-looking" statements.

PNI Digital Media is a registered trademark of PNI Digital Media Inc. All other trademarks are property of their respective owners.

Neither TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.

Contacts:
PNI Digital Media Inc. - Investor Relations and Press
Simon Cairns
(866) 544-4881
[email protected]
Twitter: @pni_media
www.pnimedia.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
JETRO showcased Japan Digital Transformation Pavilion at SYS-CON's 21st International Cloud Expo® at the Santa Clara Convention Center in Santa Clara, CA. The Japan External Trade Organization (JETRO) is a non-profit organization that provides business support services to companies expanding to Japan. With the support of JETRO's dedicated staff, clients can incorporate their business; receive visa, immigration, and HR support; find dedicated office space; identify local government subsidies; get...
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Archi...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abilit...
Organizations planning enterprise data center consolidation and modernization projects are faced with a challenging, costly reality. Requirements to deploy modern, cloud-native applications simultaneously with traditional client/server applications are almost impossible to achieve with hardware-centric enterprise infrastructure. Compute and network infrastructure are fast moving down a software-defined path, but storage has been a laggard. Until now.
Digital Transformation is much more than a buzzword. The radical shift to digital mechanisms for almost every process is evident across all industries and verticals. This is often especially true in financial services, where the legacy environment is many times unable to keep up with the rapidly shifting demands of the consumer. The constant pressure to provide complete, omnichannel delivery of customer-facing solutions to meet both regulatory and customer demands is putting enormous pressure on...
The best way to leverage your CloudEXPO | DXWorldEXPO presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering CloudEXPO | DXWorldEXPO will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at CloudEXPO. Product announcements during our show provide your company with the most reach through our targeted audienc...
@DevOpsSummit at Cloud Expo, taking place November 12-13 in New York City, NY, is co-located with 22nd international CloudEXPO | first international DXWorldEXPO and will feature technical sessions from a rock star conference faculty and the leading industry players in the world.
DXWorldEXPO LLC announced today that ICC-USA, a computer systems integrator and server manufacturing company focused on developing products and product appliances, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City. ICC is a computer systems integrator and server manufacturing company focused on developing products and product appliances to meet a wide range of ...
DXWorldEXPO LLC announced today that the upcoming DXWorldEXPO | CloudEXPO New York event will feature 10 companies from Poland to participate at the "Poland Digital Transformation Pavilion" on November 12-13, 2018.
22nd International Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, and co-located with the 1st DXWorld Expo will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud ...
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...
Michael Maximilien, better known as max or Dr. Max, is a computer scientist with IBM. At IBM Research Triangle Park, he was a principal engineer for the worldwide industry point-of-sale standard: JavaPOS. At IBM Research, some highlights include pioneering research on semantic Web services, mashups, and cloud computing, and platform-as-a-service. He joined the IBM Cloud Labs in 2014 and works closely with Pivotal Inc., to help make the Cloud Found the best PaaS.
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
DXWorldEXPO LLC announced today that All in Mobile, a mobile app development company from Poland, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. All In Mobile is a mobile app development company from Poland. Since 2014, they maintain passion for developing mobile applications for enterprises and startups worldwide.
We are seeing a major migration of enterprises applications to the cloud. As cloud and business use of real time applications accelerate, legacy networks are no longer able to architecturally support cloud adoption and deliver the performance and security required by highly distributed enterprises. These outdated solutions have become more costly and complicated to implement, install, manage, and maintain.SD-WAN offers unlimited capabilities for accessing the benefits of the cloud and Internet. ...
Headquartered in Plainsboro, NJ, Synametrics Technologies has provided IT professionals and computer systems developers since 1997. Based on the success of their initial product offerings (WinSQL and DeltaCopy), the company continues to create and hone innovative products that help its customers get more from their computer applications, databases and infrastructure. To date, over one million users around the world have chosen Synametrics solutions to help power their accelerated business or per...