SOURCE: SMTP, Inc.

March 31, 2011 06:15 ET

SMTP, Inc. Announces Fiscal Year 2010 Results

Reports Record Revenue, Net Income and Earnings per Share

CAMBRIDGE, MA--(Marketwire - March 31, 2011) - SMTP, Inc., a provider of internet-based email delivery services for permission-based marketing and transactional email, today announced record results for its fiscal year ended December 31, 2010.

Net revenues increased 77%, from $1.5 million in 2009 to $2.7 million in 2010. Gross profit increased 85% from $1.1 million in 2009 to $2.1 million in 2010. Net income increased 457% from $70,882 in 2009 to $394,901 in 2010. Net income per share increased from $0.01 in 2009 to $0.03 in 2010.

Cash generated from operating activities increased 323% to $471,563 from $111,419 in 2009. As of December 31, 2010, we had $591,063 in cash.

"We believe our annual results demonstrate the strength of SMTP's business model," commented Semyon Dukach, Chairman and CEO of SMTP, Inc. "Our service offerings and delivery platform allowed us to grow the business aggressively, while increasing operating margin and cash flow."

"The company continued to focus on its premium services segment, while providing email delivery to approximately 10,000 customers overall. We also made strategic investments in our systems infrastructure to enable us to continue our growth, and improve our customer service and operating efficiencies," concluded Dukach.

About SMTP, Inc.

SMTP is a leading provider of cloud-based services to facilitate email deliverability, including 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 based in Cambridge, Massachusetts and on the web at www.smtp.com.

 
 
SMTP.COM, INC.
STATEMENTS OF OPERATIONS
       
       
  Year Ended December 31,
  2010   2009
          (Restated)
Net revenues $ 2,735,752   $ 1,549,190
           
Cost of services   639,241     418,500
           
Gross profit   2,096,511     1,130,690
Operating expenses:          
           
  Sales and marketing   276,249     143,897
             
  General and administrative   852,530     701,384
             
  Research and development   225,392     176,189
           
               
    Total operating expenses   1,354,171     1,021,470
           
Operating income (loss):   742,340     109,220
           
Other income (expense):          
  Interest income   1,310     66
           
           
Total other income (expense)   1,310     66
           
Income (loss) before income taxes   743,650     109,286
           
Income tax benefit (expense)   (348,749)     (38,404)
           
           
Net income (loss)   394,901     70,882
           
Net income (loss) per share:          
  Basic and diluted $ 0.03   $ 0.01
           
Weighted average common shares outstanding          
  Basic and diluted   13,440,000     13,440,000
             

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