Excluding the stock-based compensation expense and income tax benefit, fourth quarter 2012 non-GAAP operating income was $7.6 million and non-GAAP net income was $7.6 million or $0.47 per share based on 16.1 million fully diluted shares outstanding. This compares to fourth quarter 2011 non-GAAP operating income of $5.4 million and non-GAAP net income of $5.7 million or $0.35 per share based on fully diluted shares outstanding of 16.6 million. Thus, fourth quarter non-GAAP operating income, non-GAAP net income and non-GAAP fully diluted earnings per share increased by 42%, 33% and 36% year-over-year, respectively.
Stamps.com has approximately $210 million in Federal NOLs and $100 million in State NOLs. The Company estimates its ownership shift was approximately 22% as of December 31, 2012, which is below the 50% level that could trigger impairment of its NOL asset under Internal Revenue Code Section 382 rules. As part of its ongoing program to preserve future use of its NOL asset, the Company requests that any shareholder contemplating becoming a 5% shareholder contact the Company before doing so.
2012 Detailed Results
Total 2012 revenue was $115.7 million, an increase of 14% versus revenue of $101.6 million in 2011. Total 2012 PC Postage revenue, including service revenue, store revenue and insurance revenue, was $110.0 million, up 18% versus PC Postage revenue of $93.3 million in 2011. Excluding the enhanced promotion channel, core PC Postage revenue in 2012 was $107.0 million, up 19% versus $90.2 million in 2011. Total 2012 PhotoStamps revenue was $5.7 million, down 32% versus PhotoStamps revenue of $8.3 million in 2011.
Total 2012 GAAP net income was $38.6 million, including approximately $4.0 million of stock-based compensation expense, $0.4 million for a one-time corporate headquarters relocation expense, and $14.4 million in non-cash tax benefit resulting from a reversal of a portion of the Company's net deferred tax asset valuation allowance. On a per share basis, total 2012 GAAP net income was $2.30 based on fully diluted shares outstanding for the year of 16.8 million. Non-GAAP and GAAP amounts are reconciled in the following table:
Fiscal Year 2012 All amounts in millions except per share or Non-GAAP Stock-Based Relocation Income Tax GAAP margin data: Amounts Comp. Exp. Expense Benefit AmountsCost of Sales $ 27.43 $ 0.33 $ - $ - $ 27.76Research & Development 9.35 0.89 - - 10.24Sales & Marketing 37.88 0.87 - - 38.75General & Administrative 12.44 1.90 0.41 - 14.75 -------- ----------- ---------- ---------- --------Total Expenses 87.11 3.99 0.41 - 91.50Gross Margin 76.3% (0.3%) - - 76.0%Income (Loss) from Operations 28.56 (3.99) (0.41) - 24.16Operating Margin 24.7% (3.5%) (0.4%) - 20.9%Interest and Other Income 0.54 - - - 0.54 -------- ----------- ---------- ---------- --------Pre-Tax Income (Loss) 29.10 (3.99) (0.41) - 24.70Provision for Income Taxes (0.57) - - 14.42 13.86 -------- ----------- ---------- ---------- --------Net Income 28.53 (3.99) (0.41) 14.42 38.56 ======== =========== ========== ========== ======== -------- ----------- ---------- ---------- --------On a diluted per share basis $ 1.70 $ (0.24) $ (0.02) $ 0.86 $ 2.30 ======== =========== ========== ========== ========Shares used in per share calculation 16.79 16.79 16.79 16.79 16.79
