Welcome!

.NET Authors: Pat Romanski, Elizabeth White, ChandraShekar Dattatreya, Trevor Parsons, Peter Silva

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.

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
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
Cultural, regulatory, environmental, political and economic (CREPE) conditions over the past decade are creating cross-industry solution spaces that require processes and technologies from both the Internet of Things (IoT), and Data Management and Analytics (DMA). These solution spaces are evolving into Sensor Analytics Ecosystems (SAE) that represent significant new opportunities for organizations of all types. Public Utilities throughout the world, providing electricity, natural gas and water, are pursuing SmartGrid initiatives that represent one of the more mature examples of SAE. We have s...
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, and physical persons. In the IoT vision, every new "thing" - sensor, actuator, data source, data con...
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happens, where data lives and where the interface lies. For instance, it's a mix of architectural styles ...
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series data. By focusing on enterprise applications and the data center, he will use OpenTSDB as an example t...
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and assessments, including a decade of leading incident response and digital forensics. He is co-author of t...
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money!
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges. In his session at @ThingsExpo, Jeff Kaplan, Managing Director of THINKstrategies, will examine why IT must finally fulfill its role in support of its SBUs or face a new round of...
One of the biggest challenges when developing connected devices is identifying user value and delivering it through successful user experiences. In his session at Internet of @ThingsExpo, Mike Kuniavsky, Principal Scientist, Innovation Services at PARC, described an IoT-specific approach to user experience design that combines approaches from interaction design, industrial design and service design to create experiences that go beyond simple connected gadgets to create lasting, multi-device experiences grounded in people's real needs and desires.
Enthusiasm for the Internet of Things has reached an all-time high. In 2013 alone, venture capitalists spent more than $1 billion dollars investing in the IoT space. With "smart" appliances and devices, IoT covers wearable smart devices, cloud services to hardware companies. Nest, a Google company, detects temperatures inside homes and automatically adjusts it by tracking its user's habit. These technologies are quickly developing and with it come challenges such as bridging infrastructure gaps, abiding by privacy concerns and making the concept a reality. These challenges can't be addressed w...
The Domain Name Service (DNS) is one of the most important components in networking infrastructure, enabling users and services to access applications by translating URLs (names) into IP addresses (numbers). Because every icon and URL and all embedded content on a website requires a DNS lookup loading complex sites necessitates hundreds of DNS queries. In addition, as more internet-enabled ‘Things' get connected, people will rely on DNS to name and find their fridges, toasters and toilets. According to a recent IDG Research Services Survey this rate of traffic will only grow. What's driving t...
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, examined three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective storage designed to handle the massive surge in back-end data in a world where timely analytics is e...
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.
We are reaching the end of the beginning with WebRTC, and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will want to use their existing identities, but these will have credentials already that are (hopefully) i...
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at @ThingsExpo, Robin Raymond, Chief Architect at Hookflash, will walk through the shifting landscape of traditional telephone and voice services ...
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 Internet of @ThingsExpo, James Kirkland, Chief Architect for the Internet of Things and Intelligent Systems at Red Hat, described how to revolutioniz...
Bit6 today issued a challenge to the technology community implementing Web Real Time Communication (WebRTC). To leap beyond WebRTC’s significant limitations and fully leverage its underlying value to accelerate innovation, application developers need to consider the entire communications ecosystem.
The definition of IoT is not new, in fact it’s been around for over a decade. What has changed is the public's awareness that the technology we use on a daily basis has caught up on the vision of an always on, always connected world. If you look into the details of what comprises the IoT, you’ll see that it includes everything from cloud computing, Big Data analytics, “Things,” Web communication, applications, network, storage, etc. It is essentially including everything connected online from hardware to software, or as we like to say, it’s an Internet of many different things. The difference ...
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world.