NASHUA, N.H., May 15, 2014 (GLOBE NEWSWIRE) -- SMTP, Inc. (Nasdaq:SMTP), a global provider of email delivery services, yesterday reported its financial results for the first quarter ended March 31, 2014.
Highlights
- Revenues increased to $1.5 million, up 8.8% percent year-over-year
- Successfully raised $11.5 million from a public offering of its common shares at a price of $6.25 per share in February 2014
- Up-listed and began trading on The NASDAQ Capital Market in January 2014
Management Commentary
"As part of our strategy to position SMTP for accelerated future growth we recently raised $11.5 million through a public offering and up-listed to the NASDAQ. We also continued to strengthen our core team and operations during the quarter," said Jonathan Strimling, CEO of SMTP.
"To complement our core email delivery platform, we are actively evaluating a number of potential acquisitions. We see multiple opportunities to broaden our product offering and better position SMTP to meet customer demand."
""SMTP has a track record of profitable growth and returning capital to shareholders through a quarterly dividend. We remain confident in our ability to execute and drive accelerated growth over the long-term. To broaden our appeal to investors and to further demonstrate our commitment to building shareholder value, we intend to begin hosting quarterly investor conference calls to review earnings beginning next quarter."
Quarterly Summary
For the first quarter ended March 31, 2014, revenues were $1.49 million, up 8.8% from $1.37 million in the first quarter of 2013. Net income for the first quarter of 2014 was $0.22 million, compared to net income of $0.22 million for the same period last year. Shares outstanding increased as a result of the company's public offering in Q1, resulting in a decline of earnings per share from $0.07 to $0.05 per share, for the first quarter of last year and this year, respectively.
Gross profit in the first quarter of 2014 was $1.2 million, or 80.6% of revenues, compared to $1.09 million, or 80.0% of revenues, in the same period last year.
Cash and liquid investments at the end of the first quarter of 2014 were $11.8 million compared to $1.7 million at the end of the fourth quarter of 2013.
About SMTP, Inc.
SMTP is a provider of services to facilitate email delivery, with a focus on marketing email delivery, but also supporting bulk and transactional sending, reputation management, compliance auditing, abuse processing and issue resolution. Our services provide customers with the ability to increase the deliverability of email with less time, cost and complexity than handling it themselves. SMTP, Inc. is a dividend-paying, publicly-traded company headquartered in Nashua, NH, and can be found on the web at http://www.smtp.com.
Safe Harbor Statement
The information posted in this release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by use of the words "may," "will," "should," "plans," "explores," "expects," "anticipates," "continues," "estimates," "projects," "intends," and similar expressions. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. These risks and uncertainties include, but are not limited to, general economic and business conditions, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in completing new customer offerings, changes in customer order patterns, changes in customer offering mix, continued success in technological advances and delivering technological innovations, delays due to issues with outsourced service providers, those events and factors described by us in Item 1.A "Risk Factors" in the Company's most recent Form 10-K; other risks to which the Company is subject; other factors beyond the Company's control.