Cafepress Inc. (PRSS)

[MR. McBALL$]

CafePress 2nd-Quarter Loss Widens, Company Gives Downbeat View; Shares OffFont size: A | A | A
7:16 PM ET 7/30/12 | Dow Jones
By Kristin Jones

CafePress Inc.'s (PRSS) second-quarter loss widened on higher marketing costs and the e-commerce company offered a downbeat outlook for the second half of the year.

Shares dove 38% to $8.45 a share in after-hours trading. Through the close, the stock has lost 28% since its IPO price of $19.

CafePress, which went public in March, is best known for its flagship website, which allows individuals and businesses to personalize things like baseball caps, posters, stationery and coffee mugs. The company recently acquired Logosportswear.com, a website for personalizing T-shirts and team uniforms.

In the latest quarter, revenue from political gear and international sales were weaker than expected, said Chief Executive Bob Marino. Looking ahead to the second half of the year, the company said it is taking a "cautious approach" given the current political cycle and economic weakness in Europe, though it expects strong holiday sales to finish the year.

For the current quarter, the company expects an adjusted net income of five cents to seven cents a share, on revenue of $42.5 million to $45 million. Analysts polled by Thomson Reuters had recently predicted per-share earnings of 10 cents on revenue of $50 million.

For the year, CafePress sees adjusted earnings of 68 cents to 77 cents a share, on revenue of $208 to $217 million. Analysts had called for revenue of $229 million.

The company posted a second-quarter loss of $260 million, or two cents a share, compared with a prior-year loss of $129 million, or a penny a share. Excluding stock-based compensation, acquisition costs and other items, per-share profit was 10 cents, up from six cents a year ago.

Revenue rose 26% to $47.1 million.

Analysts polled by Thomson Reuters were expecting adjusted earning of nine cents a share on revenue of $48.6 billion.

Gross margin narrowed to 41.5% from 42.2%.

Sales and marketing costs jumped 35% to $11.8 million.

Orders rose 20% to 888,000. Average order size climbed 4% to $52.

Write to Kristin Jones at [e-mail]

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