From The Sip Trunking Experts

TMCNet:  PNI Digital Media Reports Fiscal 2013 First Quarter Financial Results

[February 14, 2013]

PNI Digital Media Reports Fiscal 2013 First Quarter Financial Results

(Marketwire (Canada) Via Acquire Media NewsEdge) VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 14, 2013) - 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 2013 first quarter ended December 31st, 2012 and discussed key operational developments for the quarter.

"In this past quarter 26% of all orders over our platform were for greeting and photo cards within our customers sites," said Kyle Hall, Chief Executive Officer of PNI Digital Media. "Our stationery and photo markets are merging quickly and we are well positioned to take advantage of this evolving market for personalized content as it extends itself into higher value cards and invitations while leveraging our retailers' large existing consumer bases. Furthermore, we saw record transactions from mobile devices fueled by our investment in new apps for both smart phones and tablets. This investment in mobile not only enabled us to drive incremental transactions but is also opening entirely new channels for our retailers as consumer behavior shifts towards mobile. Lastly, by using our recently announced platform API, any qualified software developer can add their photo app or photo product to our platform on their own, giving our platform an almost limitless range of product innovation for our retailers, and further positioning our platform as they key venue for retailers who want to drive high value transactions from personalized products." Fiscal 2013 First Quarter Operational Highlights -- Processed a record 6.9 million transactions during the quarter, a 3% increase from the same period last year -- Processed $103.5 million in online transactions over our platform on behalf of our retail partners, a 2.2% increase compared to the same quarter in fiscal 2012 -- Set a new peak day record for transactions, conducting 270,000 transactions in a single day -- Successfully launched a new platform API portal, enabling third parties to submit orders over the Company's platform, creating incremental transactions on behalf of the Company's retail clients -- Launched an all-new Android OS mobile app on behalf of the Company's retail clients, further extending the Company's mobile apps and solutions for its retail clients. The first implementation was with Tesco PLC -- Announced a new partnership with Aperion Inc. for the provision of premium unique themes and designs available only to retailers using the Company's platform -- The Company adopted a majority voting policy for elections of Directors Fiscal 2013 First Quarter Fiscal Highlights -- Revenue for the quarter of $6.6 million compared to $6.9 million in the first quarter of fiscal 2012. The decrease in revenue was predominantly due to a $0.4 million decrease in transaction fees -- Working capital increased to $4.9 million at December 31, 2012 from $4.8 million at September 30, 2012 -- Generated IFRS loss for the quarter of $0.3 million compared to $1.0 million in income in the first quarter of fiscal 2012 -- Non-IFRS adjusted EBITDA1 was $0.3 million compared to a non-IFRS adjusted EBITDA of $1.7 million during the first quarter of fiscal 2012.

The reduced adjusted EBITDA in the current period was due in part to a large amount of capitalized personnel costs associated with the development of internal use software in the first quarter of 2012. In comparison, no internal development costs met the criteria for capitalization as internal use software in the first quarter of 2013 -- The Company ended the quarter with $3.7 million in cash and cash equivalents and no debt Conference Call The company will host a conference call on February 14th, 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#: 89825016 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 An archived replay of the webcast will be available for 45 days following the live event.

Consolidated Statements of Operations and Comprehensive Income (Loss) Three Months Ended December 31, December 31, 2012 2011 ------------------------------ Revenue $ 6,555,984 $ 6,950,376 Cost of sales 2,923,203 2,591,569 ------------------------------ Gross Profit (loss) 3,632,781 4,358,807 Expenses Software development 2,515,174 2,164,177 General and administration 973,695 1,093,029 Sales and marketing 334,351 170,954 ------------------------------ 3,823,220 3,428,160 ------------------------------ Profit (loss) from operations (190,439) 930,647 Foreign exchange gain (loss) (130,348) 105,286 Finance income 1,755 559 ------------------------------ (128,593) 105,845 ------------------------------ Profit (loss) before income tax (319,032) 1,036,492 Deferred income tax recovery (expense) - 3,731 ------------------------------ Income tax recovery (expense) - 3,731 ------------------------------ Profit (loss) for the period (319,032) 1,040,223 Other comprehensive gain (loss): Cumulative translation adjustment 182,263 (287,058) ------------------------------ Total comprehensive income (loss) for the period $ (136,769) $ 753,165 ------------------------------ ------------------------------ Earnings (loss) per share Basic $ (0.01) $ 0.03 Fully diluted $ (0.01) $ 0.03 Consolidated Balance Sheets December 31, September 30, Assets 2012 2012 ------------------------------ Current assets Cash and cash equivalents $ 3,662,556 $ 4,611,824 Accounts receivable 5,192,134 4,253,541 Prepaid expenses and other current assets 520,083 622,970 ------------------------------ 9,374,773 9,488,335 Property and equipment 4,325,496 4,683,355 Deferred income tax asset 5,252,291 5,222,603 Intangible assets 53,831 2,124 Goodwill 575,983 568,479 ------------------------------ $ 19,582,374 $ 19,964,896 ------------------------------ ------------------------------ Liabilities Current liabilities Accounts payable and accrued liabilities $ 4,063,083 $ 4,390,437 Current portion of deferred revenue 378,494 318,107 ------------------------------ 4,441,577 4,708,544 Deferred revenue 421,903 437,140 ------------------------------ $ 4,863,480 $4,863,480 $ 5,145,684 ------------------------------ Shareholders' Equity Share capital $ 66,881,748 $ 66,817,352 Contributed surplus 19,306,153 19,334,098 ------------------------------ 86,187,901 86,151,450 ------------------------------ Deficit (71,454,053) (71,135,021) Accumulated other comprehensive loss (14,954) (197,217) ------------------------------ (71,469,007) (71,332,238) ------------------------------ 14,718,894 14,819,212 ------------------------------ $ 19,582,374 $ 19,964,896 ------------------------------ ------------------------------ Non-IFRS Financial Measures Three Months Ended December 31, December 31, 2012 2011 ------------------------------ Net profit (loss) in accordance with IFRS $ (319,032) $ 1,040,223 Amortization of property and equipment 381,842 404,775 Amortization of intangible assets 17,542 265,331 Interest expense - - Income taxes - (3,731) Stock based compensation expense 36,451 79,269 Unrealized foreign exchange loss (gain) 140,547 (95,672) Loss on disposal of property and equipment 480 - ------------------------------ Adjusted EBITDA $ 257,830 $ 1,690,195 ------------------------------ ------------------------------ Adjusted EBITDA per share - Basic $ 0.01 $ 0.05 Adjusted EBITDA per share - Fully Diluted $ 0.01 $ 0.05 Weighted average shares outstanding - Basic 34,297,664 34,076,445 Weighted average shares outstanding - Fully Diluted 34,298,902 34,099,611 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 and on SEDAR at

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

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 and on the SEC'S website at 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 is a registered trademark of PNI Digital Media Inc. All other trademarks are property of their respective owners.

FOR FURTHER INFORMATION PLEASE CONTACT: PNI Digital Media Inc. - Investor Relations and Press Simon Cairns (866) 544-4881 Twitter: @pni_media 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.

Source: PNI Digital Media Inc.

[ Back To SIP Trunking Home's Homepage ]

Subscribe here for your FREE
SIP TRUNKING enewslettter.

Featured Partner

Featured Whitepapers

SIP Security for the Enterprise
Voice over IP (VoIP) is incorporated into a variety of computer networks, both public and private, and used for everyday transactions and communications among carriers, businesses, government agencies...

Making A Broadband Purchase Decision
Businesses today have many options for broadband connectivity. Clarifying your particular business needs prior to selecting a broadband provider will ensure an optimal match of broadband service to your requirements.

Voice-Optimized Network Delivers Premier Call Experience
Customers equate call quality with business quality. Real-time communication, interpersonal interaction, and the cordial tone of a call center representative can create a positive impression of your business that no email can match.

Featured Case Studies

Business Telecom Expenses Reduced 50%
A small to medium sized company in the midwest was interested in migrating to IP Communications, but in today's economy, they were hesitant to upgrade their communication system due to their perception that the cost would outweigh the benefits.

Multi-State Company Cuts Telecom Costs 50%
A multi-site, multi-state company with extensive monthly long distance fees and toll-free charges did not have adequate broadband for Broadvox SIP Trunking requirements, nor did they have a SIP enabled telephone system.

Discover Leisure Connects Remote Users to its IP-PBX
Discover Leisure is one of the largest resellers of caravans and motor homes in the UK. With 15 branch of?ces all over the country, the company spent a great deal of money every month just on internal phone calls.

Featured eBOOKS

Internet+: The Way Toward Global Unified Communication
Connecting the telephony of the enterprise PBX or Unified Communications (UC) system using SIP trunks instead of conventional telephone lines has been very successful in recent years.

What is SIP Trunking? Edition 2
SIP trunking is becoming more of a focus for service providers. One key issue many service providers face when deploying SIP trunks is NAT, or Network Address Translation, traversal.

What is SIP Trunking? Edition 1
A vast resource for information about all things SIP - including SIP, security, VoIP, SIP trunking and Unified Communications.

Featured Videos

Broadvox VAR Testimonial VAR 1:
Part 1 of the VAR (Value Added Reseller) Partner Program Testimonials for Broadvox...

E-SBCs AS The Demarcation Point:
Ingate's Steve Johnson talks to Erik Linask about the role session border controller plays as the demarcation point at...

Demystifying DPI
How can deep packet inspection protect your SIP traffic as well as your entire network?

Featured Resources

Partner Program Overview:
Over 4,000 VARs, Master Agents, Solution Providers, and Independent IT Professionals trust Broadvox. We offer customized services and solutions to fit seamlessly into any company's business model. And when you partner with Broadvox, every member of our team stands behind you and your customers 100%...

SIP Trunk UC Summit

What's New

Presenting the New Ingate/Intertex Website:
Internet+ is an extended Internet access allowing high quality SIP (Session Initiation Protocol) based real-time person-to-person communication, everywhere and for any application. It applies to both fixed and mobile networks ...

Featured Blogs

Featured Webinars

Secure SIP Trunking:
What You Need to Know

Successfully Deploying Enterprise SIP Trunking:
Tools and Techniques for Overcoming Common Roadblocks

Featured Podcasts

Getting the Most Out of Your SIP Trunks:
Ingate's Steve Johnson and TMC's Erik Linask discuss how best practices forgetting the most out of SIP Trunking services and common pitfalls to avoid.

Featured Datasheets

Ingate SIParator E-SBCs
Adopting SIP is a simple process with the Ingate SIParator, the secure enterprise session border controller (E-SBC). The SIParator makes secure SIP communications - including VoIP,SIP trunking and more - possible while working seamlessly with your existing network firewall.

Ingate Firewalls
Everyone is talking about enterprise usage of VoIP, instant messaging and other types of realtime communications including presence and conferencing.

SIP Trunk Solutions for Service Providers
The award-winning Ingate Firewall and Ingate SIParator deliver a high quality, reliable SIP trunk connection between the customer's IP-PBX and the service provider network, and solve interoperability issues to simplify deployments and support for remote diagnosis of reported issues.