Stamps.com 2010 Annual Report Download - page 14

TABLE OF CONTENTS
Under our certificate of incorporation, any person or entity, including any company or investment firm that wishes to become
a “5% shareholder” (as defined in our certificate of incorporation) must first obtain a waiver from our board of directors. In
addition any person or entity, including any company or investment firm that is already a “5% shareholder” of ours cannot make
any additional purchases of our stock without a waiver from our board of directors. These NOL Protective Measures contained
in our certificate of incorporation are more particularly discussed in our Definitive Proxy Statement filed with the Securities and
Exchange Commission on April 2, 2008.
On July 22, 2010, our Board of Directors suspended the NOL Protective Measures by approving a waiver from the NOL
Protective Measures to all persons and entities, including companies and investment firms. As a result, our stockholders are now
allowed to become “5% shareholders” and existing “5% shareholders” are allowed to make additional purchases of our stock
each without having to comply with the restrictions contained in the NOL Protective Measures. This waiver may be revoked by
our Board of Directors at any time if the Board deems the revocation necessary to protect against a Section 382 “change of
ownership” that would limit our ability to utilize future NOLs. For complete details about this waiver from the NOL Protective
Measures, please see our Form 8-K filed on July 28, 2010.
As of February 28, 2011, we had 14,542,481 shares outstanding, and therefore ownership of approximately 727,000 shares or
more would currently constitute a “5% shareholder”. We strongly urge that any stockholder contemplating becoming a 5%
or more shareholder contact us before doing so.
Employees
As of December 31, 2010, we had approximately 220 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, Geographical and Revenue Information
We operate in a single market segment, “Internet Mailing and Shipping Services” and therefore have only one reportable
segment. All of our operations, revenue and assets are within the United States. During 2010, 2009 and 2008, we did not
recognize revenue from any one customer that represented 10% or more of revenues. See Item 7. “Management’s Discussion
and Analysis of Financial Condition and Results of Operations — Results of Operations for years ended December 31, 2010 and
2009,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Results of Operations
for years ended December 31, 2009 and 2008,” for the percentage of total revenue contributed by categories of similar products
or services that accounted for 10 percent or more of consolidated revenue. Our product and insurance revenues are subject to
seasonal variations with the fourth and first calendar quarters being typically seasonally stronger and the second and third
calendar quarters being typically seasonally slower. Our service revenue does have some seasonal variation driven by typically
seasonally stronger customer acquisition in the fourth and first calendar quarters and typically seasonally slower customer
acquisition in the second and third calendar quarters. Our PhotoStamps revenue is typically seasonally stronger in the fourth
calendar quarter due to the holidays.
Company Information
We were founded in September 1996 and we were incorporated in Delaware in January 1998 as StampMaster, Inc., 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.”
Our principal executive offices are located at 12959 Coral Tree Place, Los Angeles, California, 90066, and our telephone
number is [phone].
Available Information
We make available on our website ( www.stamps.com ), free of charge, our annual report on Form 10-K, quarterly reports on
Form 10-Q, current reports on Form 8-K and all amendments to those reports filed or furnished pursuant to Section 13(a) or 15
(d) of the Exchange Act, as soon as reasonably practicable after such
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