IRVINE, Calif., May 18, 2010 (GLOBE NEWSWIRE) -- DigitalPost Interactive, Inc. (OTCBB:DGLP), http://www.dglp.com, a leader in the digital media-sharing and social networking space, reported financial results for the first quarter ended March 31, 2010.
First-quarter 2010 revenues were $143,600, compared to $311,000 in first-quarter 2009. The decline was due to a reduction in the number of recurring subscribers from B2B partnerships and lower professional services provided. Michael Sawtell, CEO, stated that he remains optimistic of the Company's long-term future, as management's strategy of building a foundation for recurring streams of revenue is producing potential new sales channels. During the last several months, DigitalPost has established three new B2B partnerships; one with Lucidiom, Inc., one of the leading providers of retail kiosks with 58,000 kiosks worldwide and an online photo solutions for retail clients; the second with The Picture People, one of the top five photography studio chains in the United States; and the third with Ritz Camera and Image, Inc., one of the largest camera and imaging products retailer in the U.S.
Sawtell commented: "In addition to the new partnerships that are expected to launch during 2010 and the potential for a major new B2B partnership, we are also seeing continuing demand from businesses to expand their web presence by integrating our interactive digital media platform and technology into their online operations.
"As a result of our business partnership progress, we are also engaged in a $2.5 million capital raise through a private placement equity offering that has already generated $1.1 million in funding," Sawtell said. "We expect to significantly improve our financial position with the completion of this offering."
First-quarter Highlights:
Revenues: Total revenue was $143,600 and $311,000 for first-quarters 2010 and 2009, respectively, representing a decrease of $167,400. The change was due to a decrease in subscription revenues of $75,500 during first-quarter 2010 as compared to the same period last year and a decrease in professional services of $91,900 during first -quarter 2010 as compared to the same period last year:
| Revenues from: |
First-Quarter 2010 |
First-Quarter 2009 |
| Subscriptions | $131,200 | $206,700 |
| Professional Services | $12,400 | $104,300 |
| Total | $143,600 | $311,000 |
Subscribers: Subscription revenues for first-quarter 2010 were $131,200 as compared to $206,700 during the same period last year. Subscription revenues decreased $75,500 due to a decrease in our customers to 10,948 recurring subscribers as of March 31, 2010 from 15,171 subscribers as of March 31, 2009.
Professional services: Professional services revenues for first-quarter 2010 was $12,400 as compared to $104,300 during the same period last year. The decrease was due to us being focused on website platform building and other development work for the Company's new B2B partners, Lucidiom and Ritz Cameras. Launches are scheduled during third-quarter 2010 and are expected to begin adding new subscribers. The Company also won a new professional services contract during the first quarter.
Net loss and non-cash items: Net loss for first-quarter 2010 was $804,500, compared to a net loss of $508,500 in first-quarter 2009. Net loss for first-quarter 2010 included non-cash items consisting of: $353,000 in stock-based compensation, $162,100 of amortization of debt discounts and $29,600 of depreciation and amortization expense. Net loss for first-quarter 2009 included non-cash items consisting of $142,500 in stock-based compensation, $155,000 of amortization of debt discounts, and $35,200 of depreciation and amortization.
Cash used in operations: Net cash used by operating activities for the quarter was $330,900, compared to $62,100 in first-quarter 2009. The increase was primarily due to our increased net loss resulting from lower subscription and professional service revenues.
Other technology/product developments: Development of version 6.0 interactive digital media platform is 80% complete and its release is scheduled for June 2010. This platform includes additional social networking integration with the ability to push content to Facebook and Twitter.
Subscriber growth outlook: In addition to the reopening of the Kiddie Kandids locations, the Company is also looking forward to other partnerships as potential revenue drivers. To date, the Company's recently launched web site, www.FamilyPhotoZoo.com is expected to be integrated into Lucidiom's customer site PhotoFinale this quarter. Through its recently established partnership with Ritz Camera and Image, DigitalPost expects to enhance www.RitzPix.com with a new video gallery in third-quarter 2010; Ritz has more than 300 Ritz Camera stores throughout the United States.
About DigitalPost Interactive
DigitalPost Interactive is a SaaS (Software as a Service) and application provider that delivers B2B and B2C digital media-sharing solutions that are both easy to offer and easy to use. The company's visually-stunning, user-friendly Web 2.0 technology gives consumers a single, engaging place online for permanently storing and sharing a lifetime of digital media and memories, connecting with family and friends, and keeping organized in today's digital world.
Completely scalable and re-brandable, DigitalPost Interactive's technology gives companies in the photo, travel, entertainment, sports, and other vertical markets a fast and efficient way to offer dynamic Web 2.0 products and services. This technology can create exciting new revenue streams for all companies looking to monetize this emerging new Internet opportunity. For more information about DigitalPost Interactive or its consumer site TheFamilyPost.com, please visit http://www.dglp.com/.
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