Fiscal Q1 2012 Financial Highlights -- Revenue was $6.9 million compared to $7.7 million in the same year-ago ....." />
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PNI Digital Media Reports Fiscal First Quarter 2012 Financial Results

(March 06, 2012)

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/06/12 -- PNI Digital Media (TSX:PN)(OTCBB:PNDMF) ("PNI"), the leading innovator in digital media solutions for retailers, reported financial results for the first quarter of fiscal 2012 ended December 31, 2011.

Fiscal Q1 2012 Financial Highlights -- Revenue was $6.9 million compared to $7.7 million in the same year-ago quarter -- Transactional revenue was $5.8 million or 83% of total revenue for the quarter -- Generated IFRS profit before income taxes of $1.0 million for the quarter, compared to $1.5 million in the same year-ago quarter -- Non-IFRS adjusted EBITDA(1) was $1.7 million, compared to $2.3 million in fiscal Q1 2011 -- Processed 6.7 million transactions over the PNI Digital Media Platform, up 5% from the same year-ago quarter -- Strong balance sheet of $5.4 million in cash and no debt Fiscal Q1 2012 Operational Highlights & Recent Events -- Signed multi-year agreement with Rite Aid Corporation to provide and operate all-new online photo center -- Signed multi-year agreement with Costco Canada to provide and operate all-new online business printing service -- Launched new Photo Art Library for Tesco's online photo center -- Moved from the TSX-Venture Exchange to the Toronto Stock Exchange on October 18, 2011 -- Flagship social stationery offering now live and taking orders at

"Our revenue continues to transition as consumer buying patterns migrate from prints to personalized products," said Kyle Hall, CEO of PNI Digital Media. "We're excited about this next chapter for our company with the launch of our new Stationery and Business Printing product lines taking us into new markets."

Conference Call

The Company will host a conference call Tuesday, March 6 at 4:30 p.m. ET (1:30 p.m. PT) to discuss these financial results. PNI Digital Media's CEO Kyle Hall, and CFO, Simon Bodymore, will host the presentation, followed by a question and answer period.

Dial-In Number: 1-888-241-0394

International: 1-647-427-3413

Conference ID#: 54944014

Please call 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 An archived replay of the webcast will be available on the company's website for 45 days following the live event.

Consolidated Statements of Financial Position December 31, 2011 September 30, 2011 -------------------------------------- Assets Current assets Cash and cash equivalents $ 5,390,268 $ 3,936,176 Accounts receivable 5,302,272 4,535,912 Prepaid expenses and other current assets 507,447 460,140 -------------------------------------- 11,199,987 8,932,228 Property and equipment 4,827,264 5,140,150 Deferred income tax asset 7,020,783 7,065,857 Intangible assets 1,100,587 680,437 Goodwill 640,715 654,222 -------------------------------------- $ 24,789,336 $ 22,472,894 -------------------------------------- -------------------------------------- Liabilities Current liabilities Accounts payable and accrued liabilities $ 4,417,827 $ 3,284,311 Current portion of deferred revenue 352,661 250,323 Current portion of finance lease obligations - - -------------------------------------- 4,770,488 3,534,634 Deferred revenue 282,145 33,898 -------------------------------------- 5,052,633 3,568,532 -------------------------------------- Shareholders' Equity Share capital $ 66,526,598 $ 66,420,572 Contributed surplus 19,495,570 19,522,420 -------------------------------------- 86,022,168 85,942,992 -------------------------------------- Deficit (65,972,144) (67,012,367) Accumulated other comprehensive loss (313,321) (26,263) -------------------------------------- (66,285,465) (67,038,630) -------------------------------------- 19,736,703 18,904,362 -------------------------------------- $ 24,789,336 $ 22,472,894 -------------------------------------- -------------------------------------- Consolidated Statements of Income and Comprehensive Income Three Months Ended December 31, 2011 December 31, 2010 -------------------------------------- Revenue $ 6,950,376 $ 7,733,805 Cost of sales 2,591,569 2,654,525 -------------------------------------- Gross Profit 4,358,807 5,079,280 Expenses Software development 2,164,177 2,305,854 General and administration 1,093,029 1,100,309 Sales and marketing 170,954 323,845 -------------------------------------- 3,428,160 3,730,008 -------------------------------------- Profit from operations 930,647 1,349,272 Foreign exchange gain 105,286 170,439 Finance income 559 48 Finance costs - (5,536) -------------------------------------- 105,845 164,951 -------------------------------------- Profit (loss) before income tax 1,036,492 1,514,223 Current income tax recovery (expense) - - Deferred income tax recovery (expense) 3,731 (534,533) -------------------------------------- Income tax recovery (expense) 3,731 (534,533) -------------------------------------- Profit for the period 1,040,223 979,690 Other comprehensive gain (loss): Cumulative translation adjustment (287,058) (456,637) -------------------------------------- Total comprehensive income for the period $ 753,165 $ 523,053 -------------------------------------- -------------------------------------- Earnings (loss) per share Basic $ 0.03 $ 0.03 Fully diluted $ 0.03 $ 0.03 Non-IFRS Financial Measures Three Months Ended December 31, 2011 December 31, 2010 -------------------------------------- Net profit in accordance with IFRS $ 1,040,223 $ 979,690 Amortization 670,106 689,379 Interest expense - 5,536 Income taxes (3,731) 534,533 Stock based compensation expense 79,269 329,634 Unrealized foreign exchange (gain) (95,672) (195,888) -------------------------------------- Adjusted EBITDA $ 1,690,195 $ 2,342,884 -------------------------------------- --------------------------------------


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, 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.


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 and on SEDAR at

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

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 and on the SEC'S website at 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.

PNI Digital Media Inc. - Financial Information
Simon Bodymore
(604) 893-8955 ext.229

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

Liolios Group, Inc.
Michael Koehler or Matt Glover
[email protected]

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