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SMTP, Inc. Reports Record 2011 Financial Results(April 02, 2012)
CAMBRIDGE, MA -- (Marketwire) -- 04/02/12 --
- 2011 Revenues increase over 56% to $4.28 million
- 2011 Gross profit margins increased 420 basis points
- 2011 Net Income increases 129.3%
- 2011 Earnings Per Share (diluted) of $0.06 in 2011vs $0.03 in 2010
SMTP, Inc. (OTCBB: SMTP), a global email marketing and delivery provider, today announced financial results for its fourth quarter and year ended December 31, 2011.
Revenue for the year ended December 31, 2011 was $4.3 million, an increase of more than 56% compared to net revenue of $2.7 million reported in the comparable year ago period. Driving this increase in revenues were increased sales of email marketing services to the Company's international client base and an increase in sales per customer account.
Gross profit increased to $3.46 million in 2011 from $2.1 million in 2010, with gross profit margin increasing to 80.8% in 2011, from 76.6% in 2010. Operating expenses in 2011 were approximately $1.9 million as compared to approximately $1.4 million in the corresponding year ended December 31, 2010. While operating expenses on a dollar value did increase, as a percentage of sales, operating expenses were 44.0% in 2011 as compared to 49.5% for the same period in 2010.
The Company reported pre-tax income of approximately $1.6 million compared to $0.7 million for the periods ended December 31, 2011 and December 31, 2010, respectively, an increase of approximately 112%. Additionally, net income in 2011 was approximately $0.9 million or $0.06 per diluted share as compared to net income of $0.4 million or $0.03 per diluted share in 2010.
Commenting on the Company's annual performance, Semyon Dukach, SMTP's Chief Executive Officer stated, "Email is entrenched as the preferred communications medium for businesses worldwide; as its volume increases, so do the challenges of sending and delivery to the inbox, such as the rise of SPAM, Blacklisting, Bounces, Blocked IPs, and email filtering. In addition to adopting a keener focus on the email marketing needs of small businesses, the increased global demand for our services has allowed SMTP to continue gaining traction with enterprises of all sizes."
"We believe that our strategy to improve the customer experience through service and technology has enabled us to post solid revenue growth over the past year. Equally important is our focus on building the right infrastructure to support a global market place, while maintaining cost controls to drive bottom-line performance. Every member of the SMTP team remains focused on creating a better user experience for our customer base and building sustainable value for our shareholders over the long-term," added Dukach.
Fourth Quarter Comparisons
Net revenue for the fourth quarter ended December 31, 2011 was $1.2 million, an increase of 37.5% compared to net revenue of $0.9 million reported in the comparable year ago period. Driving this increase in revenues were increased sales of email marketing services to the Company's international client base and an increase in sales per customer account.
Gross profit increased to approximately $1.0 million during the fourth quarter of 2011, as compared to $0.7 million reported in the comparable year ago period. Gross profit margin increased 180 basis points from 77.9% in the fourth quarter ended December 31, 2010 to 79.7% in the fourth quarter ended December 31, 2011. Operating expenses for the comparable fourth quarters increased approximately $0.2, from $0.4 million in the fourth quarter of 2010 to $0.06 million in the fourth quarter of 2011. As a percentage of sales, operating expenses were 51.4% and 48.4% for the three months ended December 31, 2011 and December 31, 2010, respectively.
The Company reported pre-tax net income of approximately $0.3 million in the fourth quarter of 2011, compared to pre-tax net income of $0.3 million in the comparable 2010 period. Net income was $0.2 million or $0.01 per diluted share for the period ended December 31, 2011, an increase over net income of $0.1 million and earnings per diluted share of $0.01 in the same period of 2010.
Dukach continued, "During 2011, we made strategic investments in our service delivery platform and in our IT, sales and support infrastructure. These investments were made in order to significantly increase the success rates of email delivery, which is critical in our industry and the key SMTP differentiator. We are in the process of exploring new technology alliances that will further improve our core offering, and we continue to look at possible acquisitions and new geographic markets to extend the reach of the SMTP brand. We are confident that 2012 will show continued growth in our business."
About SMTP, Inc.
SMTP (OTCBB: SMTP) is a leading provider of cloud-based services to facilitate email deliverability, including bulk and transactional sending, reputation management, compliance auditing, abuse processing and issue resolution. Our services provide customers with the ability to increase the deliverability of email with less time, cost and complexity than handling it themselves. SMTP, Inc. is based in Cambridge, Massachusetts and on the web at www.smtp.com.
Safe Harbor Statement
The information posted in this release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by use of the words "may," "will," "should," "plans," "explores," "expects," "anticipates," "continues," "estimates," "projects," "intends," and similar expressions. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. These risks and uncertainties include, but are not limited to, general economic and business conditions, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in completing new customer offerings, changes in customer order patterns, changes in customer offering mix, continued success in technological advances and delivering technological innovations, delays due to issues with outsourced service providers, and various other factors beyond the Company's control. For more information, please visit our website at www.SMTP.com.
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