SOURCE: SMTP, Inc.

April 19, 2011 08:25 ET

SMTP, Inc. Announces Fiscal Year 2010 Results

Reports Record Revenue, Net Income and Earnings per Share

CAMBRIDGE, MA--(Marketwire - Apr 19, 2011) - SMTP, Inc. (OTCBB: SMTP), 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. (OTCBB: SMTP)
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,
20102009
(Restated)
Net revenues$2,735,752$1,549,190
Cost of services639,241418,500
Gross profit2,096,5111,130,690
Operating expenses:
Sales and marketing276,249143,897
General and administrative852,530701,384
Research and development225,392176,189
Total operating expenses1,354,1711,021,470
Operating income (loss):742,340109,220
Other income (expense):
Interest income1,31066
Total other income (expense)1,31066
Income (loss) before income taxes743,650109,286
Income tax benefit (expense)(348,749)(38,404)
Net income (loss)394,90170,882
Net income (loss) per share:
Basic and diluted$0.03$0.01
Weighted average common shares outstanding
Basic and diluted13,440,00013,440,000

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, and various other factors beyond the Company's control.

Contact Information

  • For Further Information Contact SMTP, Inc.:

    Semyon Dukach
    CEO
    877-705-9362
    Email Contact

    Mike Kane
    Press Relations
    978-257-2179
    Email Contact

    95 Fulkerson Street
    Cambridge, MA 02141
    www.smtp.com