By a News Reporter-Staff News Editor at Investment Weekly News -- CafePress Inc. (NASDAQ: PRSS), The World's Customization Engine®, reported financial results for the three months ended June 30, 2014. Management Commentary "I am excited to return to CafePress along with Maheesh Jain, my co-founder, as CEO and CMO, respectively. We both believe we can bring focus and passion to the core business," said chief executive officer Fred Durham. "We will concentrate on the consumer, increase focus by doing fewer things but doing them better, and will be dedicated to giving customers more reasons to be excited and to shop with us more often. We will first spend some time thoughtfully analyzing the operations and strategy of our entire company. We then intend to aggressively execute a plan that we believe will streamline our business, grow profits and enhance the customer experience." Second Quarter 2014 Financial Highlights Net revenues totaled $51.4 million, compared to $52.4 million in the second quarter of 2013.
GAAP net loss was $(3.6) million, or $(0.21) per diluted share, (including stock-based compensation, amortization of intangible assets, acquisition and restructuring costs), compared to a net loss of $(1.7) million, or $(0.10) per diluted share, in the second quarter of 2013.
Adjusted EBITDA was a loss of $(0.2) million, compared to Adjusted EBITDA of $1.1 million in the second quarter of 2013.
Non-GAAP net loss was $(1.8) million, or $(0.11) per diluted share, (excluding stock-based compensation, amortization of intangible assets, acquisition and restructuring costs) compared to non-GAAP net loss of $(0.7) million, or $(0.04) per diluted share in the second quarter of 2013.
Gross profit margin was 37.0% of net revenues, compared to 38.7% in the second quarter of 2013.
At June 30, 2014, cash, cash equivalents, and short-term investments totaled $19.9 million. Second Quarter 2014 Operating Metrics Average Order Size (AOS) was $39, up 14% year-over-year.
Orders totaled 1.3 million, a 14% year-over-year decline.
Order count in the second quarter decreased due to changes in a legacy partner's roadmap related to photo prints, which carry a lower AOS. This was a contributor to an overall mix change, which produced an increase in AOS. Second Quarter Operating Highlights Continued to exhibit strength in Art and Groups properties, which saw year-over-year revenue growth of 11% and 25%, respectively.
Fulfilled growing demand for customized e-commerce offerings abroad as international revenue grew 11% year-over-year.
Enhanced mobile conversion capabilities with the launch of voucher redemption and shopping cart improvements.
Joined with Marvel Entertainment LLC to continue to bring fans gear with the addition of official Marvel's Guardians of the Galaxy to the lineup of licensed products available on CafePress.
Partnered with Generator, a direct-to-customer marketing and commerce solutions provider to the media & entertainment industry, to increase fan engagement and expand customized product offerings to fans of iconic brands such as Walking Dead, Breaking Bad and Seinfeld.
Partnered with TopSpin Media, a direct-to-fan sales and marketing platform for creative professionals, to expand customized product offerings to the 55,000 musicians, comedians, labels, managers and filmmakers using the TopSpin Platform.
Great Big Canvas launched a new commercial decor offering which helps busy professionals find fine art to transform any office space. Business Outlook Given recent management changes at the Company and the ongoing process of reviewing strategic alternatives as previously announced, CafePress is not providing financial guidance and is withdrawing its prior full year 2014 guidance. The Company notes that no decision on any particular strategic alternative has been reached at this time and cautions that there can be no assurances as to whether any strategic alternative will be recommended by the Board or implemented and under what terms and conditions. The Company does not intend to disclose developments with respect to the progress of its evaluation of strategic alternatives until such time as the Board has determined an appropriate course of action or otherwise deems disclosure is necessary. Second Quarter 2014 Conference Call Management will review the second quarter financial results on a conference call on Tuesday, August, 12, 2014 at 5:00 p.m. Eastern Standard Time (2:00 p.m. Pacific Time). To participate on the live call, analysts and investors should dial 1-888-427-9419 at least ten minutes prior to the call. CafePress will also offer a live and archived webcast of the conference call, accessible from the "Investors" section of the Company's Web site at http://investor.cafepress.com/. Non-GAAP Financial Information This press release contains certain non-GAAP financial measures. Tables are provided at the end of this press release that reconcile the non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles (GAAP). These non-GAAP financial measures include Adjusted EBITDA, non-GAAP operating income (loss), non-GAAP net income (loss), and non-GAAP net income (loss) per diluted share. For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures, please see the information provided at the end of this press release.
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