Stamps.com 2007 Annual Report Download - page 12

asset may be impaired. We estimate that, as of December 31, 2007 we were approximately at 34% compared with the 50%
level that would trigger impairment of our NOL asset. As part of our ongoing program to preserve future use of our NOLs,
we strongly urge any person contemplating owning more than 800,000 of our shares to contact us before doing so.
Employees
As of December 31, 2007, we had approximately 175 employees not including temporary or contract workers. Our
employees work in various departments including customer support, research and development, sales and marketing, information
technology and general administration. None of our employees are represented by a labor union. We believe that we have a good
relationship with our employees.
Segments
We operate in a single market segment, “Internet Mailing and Shipping Services”. All of our operations and revenue are
within the United States.
Recent Developments
On February 7, 2008, our Board of Directors approved an additional share repurchase program authorizing the Company to
purchase up to 1.2 million shares of our stock over the next six months as market and business conditions warrant. Our purchase
of any of our shares is subject to limitations that may be imposed on such purchases by applicable securities laws and regulations
and the rules of The NASDAQ Stock Market. Purchases may be made in the open market, or in privately negotiated transactions
from time to time at our discretion. We will consider repurchasing stock during our current repurchase program by evaluating
such factors as the price of the stock, the daily trading volume and the availability of large blocks of stock and any additional
constraints related to material inside information we may possess. We have no commitment to make any repurchases.
On February 13, 2007, we announced our plans to modify our publicly available PC Postage customer. Our new customer
metrics will be identical to our old metrics except that we will exclude customers acquired through the enhanced promotion
channel. We believe our new metrics will provide a more meaningful view of the underlying long term business trends in the
areas in which we are focused on growing our business. A complete set of our old and new quarterly customer metrics over the
past two fiscal years is available currently at http://investor.stamps.com (under a tab on the left side called “Company
Information”).
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TABLE OF CONTENTS
Item 1A. Risk Factors.
You should carefully consider the following risks and the other information in this Report and our other filings with the SEC
before you decide to invest in our company or to maintain or increase your investment. The risks included in this section are not
exhaustive, and additional factors could adversely affect our business and financial performance. We operate in a very
competitive and rapidly changing environment. New risk factors emerge from time to time and it is not possible for management
to predict all such risk factors, nor can it assess the impact of all such risk factors on our business or the extent to which any
factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking
statements If any of the following risks actually occur, our business, results of operations or financial condition would likely
suffer. In that case, the trading price of our common stock could decline, and you may lose all or part of your investment.
This Report contains forward-looking statements based on the current expectations, assumptions, estimates and projections
about us and the Internet. These forward-looking statements involve risks and uncertainties. Our actual results could differ
materially from those discussed in these forward-looking statements as a result of many factors, including those described in this
section and elsewhere in this Report. We do not undertake to update publicly any forward-looking statements for any reason,
even if new information becomes available or other events occur in the future.
Risks Related to Our Business
We may not successfully implement strategies to increase the adoption of our services and products which would limit our
growth, adversely affect our business and cause the price of our common stock to decline.
Our continuing profitability depends on our ability to successfully implement our strategy of increasing the adoption of our
services and products. Factors that might cause our revenues, margins and operating results to fluctuate include the factors