Stamps.com 2015 Annual Report Download - page 17
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Please find page 17 of the 2015 Stamps.com annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.TABLE OF CONTENTS
Underourcertificateofincorporation,anyperson,companyorinvestmentfirmthatwishestobecomea“5%shareholder”(as
definedinourcertificateofincorporation)mustfirstobtainawaiverfromourboardofdirectors.Inaddition,anyperson,companyor
investmentfirmthatisalreadya“5%shareholder”ofourscannotmakeanyadditionalpurchasesofourstockwithoutawaiverfrom
ourboardofdirectors.TheNOLprotectiveprovisionscontainedinourcertificateofincorporation(the“NOLProtectiveMeasures”)
aremorespecificallydescribedinourDefinitiveProxyfiledwiththeSecuritiesandExchangeCommissiononApril2,2008.
OnJuly22,2010,ourboardofdirectorssuspendedtheNOLProtectiveMeasuresbyapprovingawaiverfromtheNOLProtective
Measurestoallpersonsandentities,includingcompaniesandinvestmentfirms.Asaresult,ourstockholdersarenowallowedto
become“5%shareholders”andexisting“5%shareholders”areallowedtomakeadditionalpurchasesofourstockeachwithouthaving
tocomplywiththerestrictionscontainedintheNOLProtectiveMeasures.Thiswaivermayberevokedbyourboardofdirectorsatany
timeiftheboarddeemstherevocationnecessarytoprotectagainstaSection382“changeofownership”thatwouldlimitourabilityto
utilizefutureNOLs.ForcompletedetailsaboutthiswaiverfromtheNOLProtectiveMeasures,pleaseseeourForm8-KfiledonJuly
28,2010.
AsofJanuary29,2016,wehad16,712,407sharesoutstanding,andthereforeownershipofapproximately836,000sharesormore
wouldcurrentlyconstitutea“5%shareholder”.We strongly urge that any stockholder contemplating becoming a 5% or more
shareholder contact us before doing so.
Employees
AsofDecember31,2015,wehadapproximately600employeesnotincludingtemporaryorcontractworkers,acrossallofour
companiesincludingStamps.com,Endicia,ShipStationandShipWorks.Ouremployeesworkinvariousdepartmentsincluding
customersupport,researchanddevelopment,salesandmarketing,informationtechnologyandgeneraladministration.Noneofour
employeesarerepresentedbyalaborunion.Webelievethatwehaveagoodrelationshipwithouremployees.
Segments, Geographical and Revenue Information
Weoperateinareportingsinglesegment,“InternetMailingandShippingServices.”In2015,wecompletedthereassessmentof
oursegmentreportinginlightoftheEndiciaacquisitioninlate2015.Basedonthisreassessment,wehaveidentifiedtwooperating
segments.Bothoperatingsegmentsaggregateintoonereportablesegmentastheoperatingsegmentsaresimilarasitrelatestoservices
offered,processestoprovidetheservices,andtypesofcustomers,andhavesimilareconomiccharacteristics.In2013and2014,allof
ouroperations,revenueandassetswerewithintheUnitedStates.In2015,asaresultofourEndiciaacquisition,wehadinternational
revenueandassetsthatwerelessthan1%oftotalrevenueandassetswiththeremainderintheUnitedStates.During2015,2014and
2013,wedidnotrecognizerevenuefromanyonecustomerthatrepresented10%ormoreofrevenues.SeeItem7.“Management’s
DiscussionandAnalysisofFinancialConditionandResultsofOperations--ResultsofOperationsforyearsendedDecember31,2015
and2014,”and“Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations--ResultsofOperationsfor
yearsendedDecember31,2014and2013,”forthepercentageoftotalrevenuecontributedbycategoriesofsimilarproductsorservices
thataccountedfor10percentormoreofconsolidatedrevenue.Ourproductandinsurancerevenuesaresubjecttoseasonalvariations
withthefirstandfourthcalendarquartersbeingtypicallyseasonallystrongerandthesecondandthirdcalendarquartersbeingtypically
seasonallyslower.Ourservicerevenuedoeshavesomeseasonalvariationdrivenbytypicallyseasonallystrongercustomeracquisition
andusageinthefirstandfourthcalendarquartersandtypicallyseasonallyslowercustomeracquisitionandusageinthesecondand
thirdcalendarquarters.Ourcustomizedpostagerevenueistypicallyseasonallystrongerinthefourthcalendarquarterduetothe
holidaysbutcanfluctuatefromquartertoquarterbasedonhighvolumebusinessorders.
Company Information
WewerefoundedinSeptember1996andwewereincorporatedinDelawareinJanuary1998asStampMaster,Inc.,changingour
nametoStamps.comInc.inDecember1998.WecompletedourinitialpublicofferinginJune1999.Ourcommonstockislistedonthe
NASDAQStockMarketunderthesymbol“STMP.”
Ourprincipalexecutiveofficesarelocatedat1990E.GrandAvenue,ElSegundo,CA90245,andourtelephonenumberis(310)
482-5800.
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