Welcome!

Web 2.0 Authors: Greg Ness, Yeshim Deniz, Pat Romanski, Carmen Gonzalez, Jason Bloomberg

News Feed Item

PNI Digital Media Reports Fiscal 2012 Full Year and Fourth Quarter Financial Results

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/07/13 -- PNI Digital Media (TSX:PN)(OTCBB:PNDMF) ("PNI" or the "Company"), the leading innovator in digital media solutions for retailers, reported financial results for the fiscal 2012 full year and fourth quarter ended September 30th, 2012 and discussed key operational development for the year.

"This past year we evolved the Company to position ourselves for the future markets we believe are integral to the growth of PNI," said Kyle Hall, Chief Executive Officer of PNI Digital Media. "As we saw in the past, once the investments were made we turned our focus to rolling out customers and improving operational efficiencies. We have a proven track record in these aspects of the business and will utilize these strengths to further the ambitions of the Company. Furthermore, we plan to continue to invest in driving strong organic growth with our retail partners, who in aggregate transacted $236.2 million in online sales over our platform this year."

Fiscal 2012 Operational Highlights


--  Announced a new multi-year agreement with Tesco PLC.  
--  Announced a new agreement and launched a new photo website with Rite Aid
    Corporation. 
--  Launched a new series of mobile apps with Tesco, Costco, Sam's Club and
    CVS/pharmacy. 
--  Announced second generation of PNI Connected Kiosk(TM) software. 
--  Launched a new business printing website with Costco Wholesale Canada
    Ltd. 
--  Launched a new social stationery website with Walgreen Co. 
--  The Company graduated from the TSX Venture Exchange to the Toronto Stock
    Exchange. 
--  Processed $236.3 million in online transactions over our platform on
    behalf of our retail partners, an improvement of 4.9% from the same
    period last year. 
--  Processed a record 19.1 million transactions over the PNI Digital Media
    Platform, an improvement of 4% from the same period last year.

Fiscal 2012 Full Year Financial Highlights


--  Revenue for the year of $22.7 million compared to $23.7 million in
    fiscal 2011. The majority of change in year on year revenue was due to a
    $0.7 million decrease in one-time software installation fees from the
    previous year. 
--  Transactional revenue was $17.7million, compared to $18.1M for the same
    period last year. 
--  Transactional revenue comprised 78% of total revenue for the year. 
--  Generated a loss after income taxes of $4.1 million for the year,
    compared to a profit of $1.1 million in fiscal 2011. $1.8 million of the
    loss resulted from the Company recording income tax expense, compared to
    the recognition of an income tax recovery of $1.3 million during fiscal
    2011. 
--  Also contributing to the current period loss was non-cash impairment
    charges of $77,000 and $540,000 recorded in relation to our goodwill and
    intangible assets. These non-cash charges relate primarily to
    underperforming revenues associated with previously capitalized costs
    for our social stationery product offering, as well as changes in
    estimates in relation to the recoverability of goodwill. 
--  Generated non-IFRS adjusted EBITDA1 of $1.5 million, compared to $3.6
    million in fiscal 2011. 
--  The Company ended the year with $4.6 million in cash and cash
    equivalents and no debt.

Fiscal 2012 Fourth Quarter Financial and Operational Highlights:


--  Revenue for the quarter of $5.1 million, compared to revenue of $5.6
    million in the same quarter last year. 
--  Transactional revenue for the quarter of $3.9 million, compared to
    transactional revenue of $4.3 million in the fourth quarter last year. 
--  Transactional revenue comprised 77% of total revenue for the quarter. 
--  Generated a non-IFRS adjusted EBITDA loss of $515,000 compared to
    adjusted EBITDA of $793,000 in the same quarter last year.

Conference Call

The company will host a conference call on January 7th, 2013 at 4:30 p.m. ET (1:30 p.m. PT) to discuss these financial results. PNI Digital Media's Chief Executive Officer Kyle Hall and Chief Financial Officer Cameron Lawrence will host the presentation, followed by a question and answer period.


Dial-In Number:     (888) 241-0394      
International:      (647) 427-3413      
Conference ID#:     85534992            

Institutional investors and interested participants should dial the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization

PNI Digital Media will also provide a live webcast and slide presentation, which will be available on the company's website at www.pnimedia.com/webcast. An archived replay of the webcast will be available on the company's website for 45 days following the live event.


Consolidated Statements of Operations and Comprehensive Income (Loss)       
                                                                            
                                                                            
                                                September 30,  September 30,
                                                         2012           2011
                                              ------------------------------
                                                                            
Revenue                                          $ 22,712,805   $ 23,686,351
Cost of sales                                      10,458,022      9,399,107
                                              ------------------------------
Gross Profit                                       12,254,783     14,287,244
                                                                            
Expenses                                                                    
 Software development                               9,678,638      9,439,423
 General and administration                         3,768,203      3,928,210
 Sales and marketing                                1,038,374        988,289
                                              ------------------------------
                                                                            
                                                   14,485,215     14,355,922
                                              ------------------------------
                                                                            
Loss from operations                              (2,230,432)       (68,678)
                                                                            
Foreign exchange loss                                (82,647)      (125,148)
Finance income                                          4,647              -
Finance costs                                               -        (5,599)
                                                                            
                                              ------------------------------
                                                                            
                                                     (78,000)      (130,747)
                                              ------------------------------
                                                                            
Loss before income tax                            (2,308,432)      (199,425)
                                                                            
Deferred income tax (expense) recovery            (1,814,221)      1,299,025
                                              ------------------------------
Income tax recovery (expense)                     (1,814,221)      1,299,025
                                                                            
                                              ------------------------------
(Loss) profit for the period                      (4,122,653)      1,099,600
                                                                            
Other comprehensive gain (loss):                                            
                                                                            
 Exchange difference on translation of foreign                              
  operations                                        (170,956)       (26,263)
                                              ------------------------------
                                                                            
Total comprehensive (loss) income for the                                   
 period                                         $ (4,293,609)    $ 1,073,337
                                              ------------------------------
                                              ------------------------------
                                                                            
Loss per share                                                              
Basic                                                $ (0.12)         $ 0.03
Fully diluted                                        $ (0.12)         $ 0.03
Weighted Average Number of Shares Outstanding                               
 - Basic                                           34,178,165     33,927,659
Weighted Average Number of Shares Outstanding                               
 - Diluted                                         34,199,622     33,985,271
                                                                            
                                                                            
Consolidated Balance Sheets                                                 
                                                                            
                                 September 30,  September 30,     October 1,
                                          2012           2011           2010
                               ---------------------------------------------
                                                                            
Assets                                                                      
                                                                            
Current assets                                                              
 Cash and cash equivalents         $ 4,611,824    $ 3,936,176    $ 4,690,355
 Accounts receivable                 4,253,541      4,535,912      5,302,865
 Prepaid expenses and other                                                 
  current assets                       622,970        460,140        541,026
                               ---------------------------------------------
                                                                            
                                     9,488,335      8,932,228     10,534,246
                                                                            
Property and equipment               4,683,355      5,140,150      5,230,829
Deferred income tax asset            5,222,603      7,065,857      5,861,504
Intangible assets                        2,124        680,437      1,115,794
Goodwill                               568,479        654,222        658,904
                                                                            
                               ---------------------------------------------
                                                                            
                                  $ 19,964,896   $ 22,472,894   $ 23,401,277
                               ---------------------------------------------
                               ---------------------------------------------
                                                                            
Liabilities                                                                 
                                                                            
Current liabilities                                                         
 Accounts payable and accrued                                               
  liabilities                      $ 4,390,437    $ 3,284,311    $ 5,471,878
 Current portion of deferred                                                
  revenue                              318,107        250,323        613,081
 Current portion of finance                                                 
  lease obligations                          -              -        107,964
                               ---------------------------------------------
                                                                            
                                     4,708,544      3,534,634      6,192,923
                                                                            
Deferred revenue                       437,140         33,898         78,876
                               ---------------------------------------------
                                     5,145,684      3,568,532      6,271,799
                               ---------------------------------------------
                                                                            
Shareholders' Equity                                                        
                                                                            
Share capital                     $ 66,817,352   $ 66,420,572   $ 66,307,826
Contributed surplus                 19,334,098     19,522,420     18,933,619
                               ---------------------------------------------
                                    86,151,450     85,942,992     85,241,445
                               ---------------------------------------------
                                                                            
Deficit                           (71,135,021)   (67,012,367)   (68,111,967)
                                                                            
Accumulated other comprehensive                                             
 loss                                (197,217)       (26,263)              -
                               ---------------------------------------------
                                                                            
                                  (71,332,238)   (67,038,630)   (68,111,967)
                               ---------------------------------------------
                                                                            
                                    14,819,212     18,904,362     17,129,478
                                                                            
                               ---------------------------------------------
                                  $ 19,964,896   $ 22,472,894   $ 23,401,277
                               ---------------------------------------------
                               ---------------------------------------------
                                                                            
                                                                            
Non-IFRS Financial Measures                                                 
                                                                            
                                                        Year Ended          
                                                September 30,  September 30,
                                                         2012           2011
                                              ------------------------------
                                                                            
Net loss in accordance with IFRS                $ (4,122,653)    $ 1,099,600
Amortization of property and equipment              1,808,725      2,036,953
Amortization of intangible assets                   1,091,024        858,354
Impairment of intangible assets                       540,735              -
Impairment of goodwill                                 77,382              -
Interest expense                                            -          5,553
Income taxes                                        1,814,221    (1,299,025)
Stock based compensation expense                      208,749        848,243
Unrealized foreign exchange loss                       46,601         71,930
                                                                            
                                              ------------------------------
Adjusted EBITDA                                   $ 1,464,784    $ 3,621,608
                                              ------------------------------
                                              ------------------------------

Notes:

1 - Non-IFRS Measures

The Company continues to provide all information required in accordance with IFRS, but believes evaluating its ongoing operating results may not be as useful if an investor is limited to reviewing only IFRS financial measures. Accordingly, the Company uses non-IFRS financial information to evaluate its ongoing operations and for internal planning and forecasting purposes. The primary non-IFRS financial measures utilized by the Company include adjusted EBITDA. Adjusted EBITDA is non-IFRS financial measure which the Company defines as net profit plus amortization, impairment, interest expense, tax expense, share-based compensation expense and unrealized foreign exchange loss (gain).

To supplement the Company's financial statements presented on an IFRS basis, we believe that these non-IFRS measures provide useful information about the Company's core operating results and thus are appropriate to enhance the overall understanding of the Company's past financial performance and its prospects for the future. These adjustments to the Company's IFRS results are made with the intent of providing both management and investors a more complete understanding of the Company's underlying operational results and trends and performance. Management uses these non-IFRS measures to evaluate the Company's financial results, develop budgets, manage expenditures, and determine employee compensation. The presentation of additional information is not meant to be considered in isolation or as a substitute for or superior to net (loss) earnings or net (loss) earnings per share determined in accordance with IFRS.

Currency:

All amounts are expressed in Canadian dollars. This notice is qualified in its entirety by reference to the Company's financial statements and accompanying Management Discussion and Analysis, which are accessible on the SEC'S website at www.sec.gov/edgar.shtml and on SEDAR at www.sedar.com.

About PNI Digital Media- Founded in 1995, PNI Digital Media operates the PNI Digital Media Platform, which provides transaction processing and order routing services for major retailers. The PNI Digital Media Platform connects consumer-ordered digital content, whether from online, in-store kiosks, desktop software or mobile phones, with retailers that have on-demand manufacturing capabilities for the production of personalized products such as photos, photo books and calendars, business cards and stationery. PNI Digital Media successfully generates millions of transactions each year for retailers and their thousands of locations worldwide.

Further information on our company can be found at www.pnimedia.com.

The statements that are not historical facts contained in this release are forward-looking statements that involve risks and uncertainties. PNI Digital Media's actual results could differ materially from those expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, changes in technology, employee retention, inability to deliver on contracts, failure of customers to continue marketing the online solution, competition, general economic conditions, foreign exchange and other risks detailed in the Company's annual report and other filings. Additional information related to the Company can be found on SEDAR at www.sedar.com and on the SEC'S website at www.sec.gov/edgar.shtml. The information contained herein is subject to change without notice. PNI Digital Media shall not be liable for technical or editorial errors or omissions contained herein.

The TSX has neither approved nor disapproved the information contained in this release. PNI Digital Media relies upon litigation protection for "forward-looking" statements.

PNI Digital Media and Connected Kiosk are registered trademarks of PNI Digital Media Inc. All other trademarks are property of their respective owners.

Neither TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
The definition of IoT is not new, in fact it’s been around for over a decade. What has changed is the public's awareness that the technology we use on a daily basis has caught up on the vision of an always on, always connected world. If you look into the details of what comprises the IoT, you’ll see that it includes everything from cloud computing, Big Data analytics, “Things,” Web communication, applications, network, storage, etc. It is essentially including everything connected online from hardware to software, or as we like to say, it’s an Internet of many different things. The difference ...

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's platform-as-a-service. The new platform enables developers to build ap...

Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world.
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and assessments, including a decade of leading incident response and digital forensics. He is co-author of t...
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com), moderated by Ashar Baig, Research Director, Cloud, at Gigaom Research, Nate Gordon, Director of T...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Architect for the Internet of Things and Intelligent Systems at Red Hat, described how to revolutioniz...
Technology is enabling a new approach to collecting and using data. This approach, commonly referred to as the "Internet of Things" (IoT), enables businesses to use real-time data from all sorts of things including machines, devices and sensors to make better decisions, improve customer service, and lower the risk in the creation of new revenue opportunities. In his General Session at Internet of @ThingsExpo, Dave Wagstaff, Vice President and Chief Architect at BSQUARE Corporation, discuss the real benefits to focus on, how to understand the requirements of a successful solution, the flow of ...
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, and physical persons. In the IoT vision, every new "thing" - sensor, actuator, data source, data con...
"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Focused on this fast-growing market’s needs, Vitesse Semiconductor Corporation (Nasdaq: VTSS), a leading provider of IC solutions to advance "Ethernet Everywhere" in Carrier, Enterprise and Internet of Things (IoT) networks, introduced its IStaX™ software (VSC6815SDK), a robust protocol stack to simplify deployment and management of Industrial-IoT network applications such as Industrial Ethernet switching, surveillance, video distribution, LCD signage, intelligent sensors, and metering equipment. Leveraging technologies proven in the Carrier and Enterprise markets, IStaX is designed to work ac...
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
C-Labs LLC, a leading provider of remote and mobile access for the Internet of Things (IoT), announced the appointment of John Traynor to the position of chief operating officer. Previously a strategic advisor to the firm, Mr. Traynor will now oversee sales, marketing, finance, and operations. Mr. Traynor is based out of the C-Labs office in Redmond, Washington. He reports to Chris Muench, Chief Executive Officer. Mr. Traynor brings valuable business leadership and technology industry expertise to C-Labs. With over 30 years' experience in the high-tech sector, John Traynor has held numerous...
Bit6 today issued a challenge to the technology community implementing Web Real Time Communication (WebRTC). To leap beyond WebRTC’s significant limitations and fully leverage its underlying value to accelerate innovation, application developers need to consider the entire communications ecosystem.
The 3rd International @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades.
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover how hardware commoditization, the ubiquitous nature of connectivity, and the emergence of Big Data a...
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, phone and digital TV services to consumers primarily in rural areas.
SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada. Our partner network encompasses some 300 of the world's leading systems integrators and security s...
IoT is still a vague buzzword for many people. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. He also discussed how IoT is perceived by investors and how venture capitalist access this space. Other topics discussed were barriers to success, what is new, what is old, and what the future may hold. Mike Kavis is Vice President & Principal Cloud Architect at Cloud Technology Pa...
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world. The next @ThingsExpo will take place November 4-6, 2014, at the Santa Clara Convention Center, in Santa Clara, California. Since its launch in 2008, Cloud Expo TV commercials have been aired and CNBC, Fox News Network, and Bloomberg TV. Please enjoy our 2014 commercial.