myPhotopipe.com, Inc. a web-based online provider of digital photo processing and related services, today announced its operating results for the first quarter of 2008.
For the three months ended March 31, 2008, revenues increased 26% to $366,329, compared with revenues of $289,869 in the first quarter of 2007. Gross profits increased 42% to $270,373 (73.8% of revenues), versus $189,864 (65.5% of revenues) in the prior-year quarter. The Company reported a net loss of ($73,705) in the most recent quarter, versus a net loss of ($15,753) in the three months ended March 31, 2007.
"myPhotopipe.com continued to post excellent gains in revenues during the most recent quarter, with an increase of 26% over prior-year levels," stated L. Douglas Keeney, Chief Executive Officer of the Company. "That said, a significant design initiative related to the overhaul of our web site made unexpectedly good progress in January, and we elected to accelerate its launch, which in turn necessitated a concurrent increase in our search engine buys. Accordingly, we realized a slightly higher loss for the period than we anticipated, but we have been extremely pleased with the initial results from the new web site, as measured in a sharp increase in customer acquisitions, excellent industry notices, and continued revenue growth during April."
"New product introductions continued at our historical pace, which by any measure is rapid and well accepted by the market. Our gallery wraps and mounted products have been well received by customers, as has our pioneering PRPrintsPro platform that is now being used by many professional sports organizations. myPhotopipe.com's portfolio of greeting cards, a significant vein of revenue that we intend to vigorously mine, has increased by several hundred SKUs since the beginning of the year. Our project to allow local stationery stores to access more than 600 photo greeting cards appears to be progressing towards a beta in the second quarter. And finally, our industry data couldn't be better. Owners of digital cameras are making prints at historically high and growing levels, and online ordering with direct mail delivery is the channel of fulfillment that is expanding significantly faster than retail, kiosks or any other method of purchasing prints."
"We're an online lab serving the needs of professional and serious amateur photographers," continued Keeney. "This is a segment not all of us understand, so allow me this final thought. According to a recent InfoTrends study, professional photographers are themselves a $5 billion industry. They shoot pictures and earn 80%+ of their mean annual revenues of $130,000 by selling photographic prints. What's our value proposition to them? In a nutshell it is as follows.
Because they waited for high-end digital cameras, professional photographers were slower than the consumer to switch to digital technology. But now, the switch is underway in earnest. Ironically, at the very same time these photographers are 'going digital', more than half of their local camera stores, where they went for photo processing, have closed, so they are going online to find a new photo processor. What do they see? Photo mousepads and photo coffee mugs and photo t-shirts -- all sorts of 'cute' ways to share your photos. That's not what professionals are looking for. They're searching for a lab that focuses on making a top notch, professional print at a price that is competitive to any lab in the nation. That's a description of myPhotopipe.com. That's our value proposition. Using our products our customers can make a living. That's a wonderful position to be in. We believe we're in the right place at the right time, serving a lucrative slice of the digital photography market during a period of extensive brand switching. With persistence and steadfastness, we will emerge as one of the top brands in the business."
About myPhotopipe.com, Inc.
myPhotopipe.com, Inc. is a web-based online provider of digital photo processing, photo finishing, photo sharing, and related services. The Company's unique blend of 1000 print options, combined with manual print inspections and professional color management, have positioned myPhotopipe.com as one of the fastest-growing providers of digital photography services for professionals and serious amateurs.
The Company is headquartered in Atlanta, Georgia, and its common stock is listed on the OTC Pink Sheets under the symbol "MPPC". Additional information is available on the Internet at http://www.myphotopipe.com/.
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934 that are subject to the "safe harbor" created by those sections. Such forward-looking statements are based upon current information and expectations regarding myPhotopipe.com, Inc. These statements speak only as of the date on which they are made, are not guarantees of future performance, and involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results could materially differ from what is expressed, implied, or forecast in such forward-looking statements.
myPhotopipe.com, Inc. assumes no obligation to update the information contained in this release. Any forward-looking statements in this press release may be materially impacted by any number of factors, any or all of which could have a negative impact on sales, operating results, financial and budgetary constraints. The statements made herein are independent statements by myPhotopipe.com, Inc. The inclusion or mention, if any, of third parties in this press release does not represent an endorsement of any myPhotopipe.com, Inc. products or services by any such third party.