Stamps.com 2007 Annual Report Download - page 5

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Overview
Stamps.com® is the leading provider of Internet-based postage solutions. Our customers use our service to mail and ship a
variety of mail pieces including postcards, envelopes, flats and packages, using a wide range of United States Postal Service (the
“USPS”) mail classes including First Class Mail®, Priority Mail®, Express Mail®, Media Mail®, Parcel Post®, and others. Our
customers include home businesses, small businesses, corporations and individuals. We were the first ever USPS-licensed
vendor to offer PC Postage® in a software-only business model in 1999. On August 10, 2004, we publicly launched a market
test of PhotoStamps®, a new form of postage that allows consumers to turn digital photos, designs or images into valid US
postage. Any reference in this document to our PC Postage business does not include our PhotoStamps business.
We were founded in September 1996 to investigate the feasibility of entering into the USPS Information-Based Indicia
Program and to initiate the certification process for our PC Postage service. In January 1998, we were incorporated in Delaware
as StampMaster, Inc., thereafter changing our name to Stamps.com Inc. in December 1998. We completed our initial public
offering in June 1999. Our common stock is listed on the NASDAQ Stock Market under the symbol “STMP.”
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TABLE OF CONTENTS
Our principal executive offices are located at 12959 Coral Tree Place, Los Angeles, California, 90066, and our telephone
number is (310) 482-5800.
Services and Products
We offer the following products and services to our customers:
We offer our customers three primary ways to print PC Postage. First, our NetStamps® feature and Photo NetStamps®
feature enables customers to print postage for any value and most classes of mail on NetStamps or Photo NetStamps
labels. After they are printed, NetStamps and Photo NetStamps can be used just like regular stamps. Second, our shipping
feature tab allows customers to print postage for packages on plain 8.5” x 11” paper or on special labels, with electronic
Delivery or Signature Confirmation at discounted prices. Third, our mailing feature tab is typically used to print the
postage and address directly on envelopes or on other types of mail or labels in a single-step process that saves time and
provides a professional look. Our PC Postage services also incorporate address verification technology that verifies each
destination address for mail sent using our service against a database of all known addresses in the United States. As an
added convenience, our PC Postage services have been designed to integrate into common small business and
productivity software applications such as word processing, contact and address management, and accounting and
financial applications.
•
PC Postage Service.
Our USPS-approved PC Postage service enables users to print information-based indicia, or
electronic stamps, directly onto envelopes, plain paper, or labels using ordinary laser or inkjet printers. Our service
currently supports a variety of USPS classes including First-Class Mail
TM
, Priority Mail
TM
, Express Mail
TM
, Parcel
Post
TM
, Media Mail
TM
, Bound Printed Matter, and international mail. Customers can also add USPS Special Services
such as Delivery Confirmation
TM
, Signature Confirmation
TM
, Registered Mail, Certified Mail, Insured Mail, Return
Receipt, Collect on Delivery (“COD”) and Restricted Delivery to their mail pieces. Our service requires only a standard
PC, printer and Internet connection. Our free software can be downloaded from the Internet or installed from a CD-
ROM. After installing the software and completing the registration process, customers can purchase and print postage 24
hours a day, seven days a week. When a customer purchases postage for use through our service, the customer pays face
value, and the funds are transferred directly from the customer’s account to the USPS’s account. The majority of new
customers currently signing up for our service pay a monthly convenience fee ranging from $15.99 to $49.99 based on
individual product, pricing and promotions.
•
PhotoStamps
®. In May 2007, we launched our fourth market test of PhotoStamps, a patented form of postage that
allows consumers to turn digital photos, designs or images into valid US postage. With this product, individuals or
businesses can now create customized US postage using pictures of their children, pets, vacations, celebrations, business
logos and more. PhotoStamps can be used as regular postage to send letters, postcards or packages. The product is
available via our separately-marketed website at www.photostamps.com . Customers upload a digital photograph or
image file, customize the look and feel by choosing a border color to complement the photo, select the value of postage,
and place the order online. We sell PhotoStamps in sheets of 20 individual PhotoStamps or in rolls for higher volume
applications. PhotoStamps is currently available under authorization of the USPS for its fourth phase market test with
authorization through May 2008 (we expect the program to continue after that date).