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TABLE OF CONTENTS
Underourcertificateofincorporation,anyperson,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,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.TheNOLprotectiveprovisionscontainedinourcertificateofincorporation(the“NOLProtectiveMeasures”)
aremorespecificallydescribedinourDefinitiveProxy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January29,2016,wehad16,712,407sharesoutstanding,andthereforeownershipofapproximately836,000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,2015,wehadapproximately600employeesnotincludingtemporaryorcontractworkers,acrossallofour
companiesincludingStamps.com,Endicia,ShipStationandShipWorks.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reportingsinglesegment,“InternetMailingandShippingServices.”In2015,wecompletedthereassessmentof
oursegmentreportinginlightoftheEndiciaacquisitioninlate2015.Basedonthisreassessment,wehaveidentifiedtwooperating
segments.Bothoperatingsegmentsaggregateintoonereportablesegmentastheoperatingsegmentsaresimilarasitrelatestoservices
offered,processestoprovidetheservices,andtypesofcustomers,andhavesimilareconomiccharacteristics.In2013and2014,allof
ouroperations,revenueandassetswerewithintheUnitedStates.In2015,asaresultofourEndiciaacquisition,wehadinternational
revenueandassetsthatwerelessthan1%oftotalrevenueandassetswiththeremainderintheUnitedStates.During2015,2014and
2013,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,2015
and2014,”and“Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations--ResultsofOperationsfor
yearsendedDecember31,2014and2013,”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firstandfourth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
andusageinthefirstandfourthcalendarquartersandtypicallyseasonallyslowercustomeracquisitionandusageinthesecondand
thirdcalendarquarters.Ourcustomizedpostagerevenueistypicallyseasonallystrongerinthefourthcalendarquarterduetothe
holidaysbutcanfluctuatefromquartertoquarterbasedonhighvolumebusinessorders.
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1990E.GrandAvenue,ElSegundo,CA90245,andourtelephonenumberis(310)
482-5800.
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