Stamps.com 2002 Annual Report Download - page 6

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Table of Contents
any value on special label stock that has 25 labels per an 8 by 11 sheet of paper. The customer can print any value of postage from $.01 to $.37
and up. The postage does not expire and is not tied to the destination address so it can be printed and stored for later use. Additionally,
NetStamps can be used for most classes of mail, expanding the number of mail classes that we support. For example, NetStamps now supports
mail classes such as International, Book Rate, and Non-Profit.
In October 2002, the Company announced it had signed an expanded three-year strategic relationship with Microsoft Corporation. Separately,
Stamps.com and Microsoft are also working to forge improved integration of Stamps.com’ s online postage technology with Microsoft’ s
widely-used Word software. The enhanced electronic postage printing functionality is currently being tested in the Beta 2 version of Microsoft
Office 11. Users who print envelopes using Microsoft Word 11 will be offered the option of checking a box to add electronic postage. When
they do so, they will be able to print the address and postage on the envelope in a seamless one step process powered by Stamps.com, all
without leaving the familiar Word interface. In addition, Microsoft users will benefit from features provided by Stamps.com such as adding
graphics or company logos to a mail piece for a personalized or professional look; keeping track of postage use through reports and accounting
codes; minimizing undeliverable mail through automatic address correction and verification; and automatic calculation of postage rates based
on mail class and weight of mail piece. The integration with Microsoft is an important achievement in Stamps.com’ s efforts to seamlessly
integrate its postage solution into partner products and services.
On November 29, 2002 Stamps.com launched its Plain Paper Shipping feature within version 3.0 of its client software. This version of our
software was designed to enhance shipping functionality, including the ability to print a shipping label with electronic delivery confirmation.
Customers are now able to print a shipping label on a plain piece of 8 by 11 printer paper. This eliminates the need to use special 3-part labels
and reduces the risk of misprinted postage. Using Stamps.com’ s new Plain Paper Shipping Label allows customers to receive free electronic
delivery confirmation with Priority Mail. Prior to this technology, the United States Postal Service (USPS) required separate confirmation
labels that added an additional step to the process, and delivery confirmation cost an additional $.45 per package. Electronic signature
confirmation and electronic delivery confirmation on other mail classes are also available at discounted rates with a $.40–$.50 savings per
package. Customers may also track their packages within our software with a simple status check, thus eliminating the need to key in a long
tracking number. As of March 16, 2003, customers acquired since the November 29 release date have used Plain Paper Shipping for 14% of
their total postage prints. The Company will continue to focus its marketing efforts on leveraging this value-added shipping tool.
Corporate Information
Stamps.com was founded in September 1996 to investigate the feasibility of entering into the US Postal Service’ s Information Based Indicia
Program and initiate the certification process for our Internet Postage service. In January 1998, we were incorporated in Delaware as
StampMaster, Inc. and changed our name to Stamps.com Inc. in December 1998. We completed our initial public offering in June 1999 and our
common stock is listed on the Nasdaq NM under the symbol “STMP.”
Our principal executive offices are located at 3420 Ocean Park Boulevard, Suite 1040, Santa Monica, California 90405, and our telephone
number is (310) 581-7200.
Stamps.com Internet Mailing and Shipping Services
Stamps.com’s Service. Our US Postal Service approved Internet Postage service enables users to print information-based indicia, or electronic
stamps, directly onto envelopes or labels using ordinary laser or inkjet printers. Our service requires no additional hardware—the user’ s
existing PC, printer and Internet connection are sufficient. Our free software can be downloaded from the Internet or installed from a CD-ROM.
After installing the software and completing a registration process, customers can purchase and print postage 24 hours a day,
2
2003. EDGAR Online, Inc.