Wednesday, February 25, 2009

PhotoChannel Turns a Profit


From the company's press release ("PhotoChannel Reports Profitable First Quarter"):

FIRST QUARTER FISCAL 2009 HIGHLIGHTS

- Net profit of $940,644 versus a loss of $1,082,600 for
the comparable period of fiscal 2008

- Record revenues of $7.2 million, up 67% year-over-year

- Transactional revenues of $5.8 million, up 91% year-over-year

- Non-GAAP adjusted EBITDA(1) of $2.8 million, compared
to an adjusted EBITDA loss of $117,483 in the first quarter
of 2008 (adjusted EBITDA defined as net profit plus amortization
and stock-based compensation expense)

- Non-GAAP adjusted EBITDA representing 39% of net-revenues
for the quarter

- Earnings per share (EPS) of $0.03 versus a loss per share
of $0.03 for the comparable period of fiscal 2008

- Non-GAAP adjusted Earnings per share (EPS)(1) of $0.08
versus $0.00 for the comparable period of fiscal 2008

- At December 31, 2008 the Company had approximately $3.1
million cash on its balance sheet

ORDER METRICS

- Over 4.9 million orders were transacted in the first quarter
of fiscal 2009

- Average daily orders of approximately 53,000 versus 15,000
for the same period of fiscal 2008, a 240% increase year-over-year

- Peak day saw over 134,000 orders placed and over 5.2 million
images pass through the PNI Platform

12 comments:

ndl11 said...

Per the conference call they are working on applications for the iphone and googles picassa among others

DaveinHackensack said...

Good to know. I haven't had a chance to listen to the replay yet.

Paul "Ashamed" Price said...

Unbelievable! This can't happen! How will I bash this stock again?

I bet the results are doctored, they have to be.Even a dumbo like Christine knows that.

I still have tons of Dave's microcaps to focus on. The "Price" will be back!

- Papa Paul price

JK said...

Hopefully DSNY follows suit. I'll add if it does, and sell if it doesn't. I don't think there is a good excuse for them to be unprofitable this quarter, given their trajectory.

Paul Price said...

christine, dear, get me the morphine!

I can't hide this pain! This will subside only when this company goes from the pink sheets to graveyard.
How do I do that? May be next Q they will come out with an accounting Fraud...God..help me...

The Rael Stockdoc said...

The above postings from "me" were not...

I did notice that PNWIF dropped over 12% today on this wonderful news though.

Paul Price - Unreal said...

God!
That is what I am saying, the market doesn't like this result - thats why I feel this Q is doctored (not by a dentist though).

Listen to the market ( By the way, read my latest book on Amazon -

How to profit from Christine's Fibonacci retracements )

DaveinHackensack said...

"I did notice that PNWIF dropped over 12% today on this wonderful news though."

I'm not too surprised. As I've said several times in recent months, in this market, there's little point investing in a currently unprofitable company in the hopes of getting a better price before it becomes profitable; the risk-reward balance now favors waiting for the profits to come in and help validate the investment thesis. Chances are, you won't have to pay up for the stock, even after it first turns a profit (as would have been the case with PNWIF today).

DaveinHackensack said...

"I bet the results are doctored, they have to be.Even a dumbo like Christine knows that."

Please take the sock puppeting to the Dramatis Personae thread. Dated threads are moderated, but I'll be happy to post whatever silly comments you want to make there. Thanks.

ndl11 said...

"Will you please take it outside?" This is tiresome for one who is not interested in these internet squabbles. It is the courteous thing to do with regard to other readers.

ndl11 said...

According to Aaron Edelheit (posted on VIC) COO is making open market purchases. I couldnt find anything on edgar or sedar.

DaveinHackensack said...

Thanks for the heads up, ndl11. Below is the full text of Edelheit's comment from the VIC:

"Photochannel announced 67% sales growth and their first real profitable quarter, earnings $0.08 a share on a cash basis. Their transaction revenue grew 91% in one of the worst economic periods in a long time. On their conference call they said that through February organic growth was still 25% year over year, and that we will be cash flow positive from here on out even in one of their seasonally weakest periods. They also posted a fantastic 39% EBITDA margin in the quarter.

There are a number of catalysts on the horizon including:

1)A potential contract/agreement with Facebook or other social networking sites

2)Wal-Mart U.S. contract

3)Kodak India contract

4)Kodak China ramping up

5)Business printing contracts

I continue to expect the company to earn at least $0.25 a share in cash eps, excluding amortization, and assumes no new contract wins or new business. The stock trades for 5.8 times this number despite continuing to grow, have minimal capex requirements and a 40% EBITDA margin business.

I continue to pound the table that this is a screaming buy and if not for terrible stock market action would be much, much higher.

Oh yeah, and the COO has started buying stock in the open market."