Stamps.com 2012 Annual Report Download - page 33

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During 2012, we recorded current tax provision for corporate alternative minimum federal and state taxes of approximately $565,000. During
2011, we were in a taxable loss position for tax reporting purposes and as a result we did not incur any current tax provision.
Expectations for 2013
We expect the following trends for 2013:
As discussed above, our results are subject to macro economic factors and other factors which could cause these trends to be worse than our
current expectation or which could cause actual results to be materially different than our current expectations. These expectations are “
forward
looking statements”, are made only as of the date of this Report and are subject to the qualification and limitations on the forward-
looking
statements discussion on page 1 of Part I of this Report and the risks and other factors set forth in Item 1A “Risk Factors”.
As described in our
forward-looking statements discussion, we do not undertake any obligation to release publicly any revisions to our forward-
looking statements to
reflect events or circumstances after the date of this Report.
Years Ended December 31, 2011 and 2010
Total revenue in 2011 was $101.6 million, an increase of 19% from $85.5 million in 2010. PC Postage revenue, including service revenue,
product revenue and insurance revenue, in 2011 was $93.3 million, an increase of 19% compared to $78.4 million in 2010. Core PC Postage
revenue increased 22% to $90.2 million in 2011 from $73.8 million in 2010. Non-
Core PC Postage revenue decreased 30% to $3.2 million in
2011 from $4.5 million in 2010. PhotoStamps revenue in 2011 was $8.3 million, an increase of 15% compared to $7.2 million in 2010. Other
revenue in 2011 was $6,000, a decrease of 78% compared to $27,000 in 2010.
Table of Contents
•
We expect total 2013 revenue to be in a range of between $120 million to $130 million.
•
We expect 10% to 15% growth in Core PC Postage revenue for 2013 compared to 2012.
• We expect Non-
Core PC Postage and PhotoStamps revenues to decrease in 2013 compared with 2012, as we expect to minimize investment
in these areas of our business.
•
In October 2012, Amazon.com launched an additional Marketplace USPS shipping solution as an alternative to our shipping solution and
we expect this to have a negative impact on our 2013 revenue from this partnership.
• We expect to continue to increase customer acquisition spending on our Core PC Postage marketing channels by 5% -
15% in 2013
compared to 2012. We will continue to monitor our customer metrics and the state of the economy and adjust our level of spending
accordingly.
•
We expect research and development expenses to be higher in 2013 as compared to 2012, primarily related to expected increased headcount
costs to support the growth in our products and services.
•
We expect general and administrative expenses to be higher in 2013 as compared to 2012, primarily related to increased headcount costs.
•
We expect capital expenditures to be approximately $3.5 million in 2013 reflecting an increased level of investment in our technology
platform and data centers to ensure the scalability and reliability of our solutions.
29