Archives for February 2, 2011

Shutterfly announces reports full-year 2010 revenues up 25 percent

Shutterfly Inc., Redwood City, Calif., reported fourth-quarter net revenues increased 27 percent to $166.2 million, and full-year 2010 revenues increased 25 percent to $307.7 million. Net income in the quarter was $32.5 million, compared to $24.1 million. Net income for the year was $17.1 million, compared to $5.8 million the year prior.

“Our strategic investments throughout 2010, combined with our focus on strong execution, innovation and improved efficiencies

Jeff Housenbold, president and CEO, Shutterfly

Jeff Housenbold, president and CEO, Shutterfly

led to record revenues, profits, and free cash flows” says Jeffrey Housenbold, president and CEO. “We continue to outpace the industry in terms of innovation, user experience, on-trend designs, quality, and customer service. With the social expression and personal publishing markets still in the early stages, Shutterfly will focus on extending our leadership position in these large markets throughout 2011.”

For the fourth quarter, Personalized Products & Services (PPS) net revenues totaled $123.8 million, a 33-percent year-over-year increase, and represented 75 percent of total net revenues. Net revenues from Prints totaled $40.1 million, a 10-percent year-over-year increase. Commercial Print net revenues totaled $2.3 million.

Also, in the quarter, existing customers generated 72 percent of total net revenues, and transacting customers totaled 2.3 million, a 23-percent year-over-year increase. Average order value was $44.41, a 5 percent year-over-year increase.

For the full year, PPS net revenues totaled $218.7 million, a 35-percent year-over-year increase, represented 71 percent of total net revenues. Net revenues from prints totaled $83.9 million, a 4 percent year-over-year increase. Commercial Print net revenues totaled $5.1 million. Existing customers generated 73 percent of total net revenues. Transacting customers totaled 4.1 million, a 24 percent year-over-year increase. Orders increased 17 percent to 9.2 million, with the average order value was $32.88, a 7 percent year-over-year increase.

For the first quarter 2011, the company expects net revenues to range from $52 million to $53 million, a year-over-year increase of 14 to 16 percent. For the full year, the company expects net revenues to range from $363 million to $373 million, a year-over-year increase of 18 to 21 percent.

Personalized Products and Services net revenues primarily include Photo Books, Stationery and folded Greeting Cards, Calendars and Photo-based Merchandise. PPS also includes net revenues from advertising and sponsorship programs and referral fees. The company’s referral fee program was discontinued effective March 31, 2010, and no referral fee revenues have been recorded subsequent to that date. Print net revenues consist of photo print from wallet to large-format sizes. Commercial Print net revenues are excluded from net revenues from PPS and Prints.

Photo-sharing startup Instagram garners $7 million funding

According to TechCrunch, upstart mobile photo-sharing company Instagram has secured $7 million in Series A funding, including funds from Benchmark Capital, Baseline Ventures, Square’s Jack Dorsey, Chris Sacca (through his Lowercase Capital fund), and Quora’s Adam D’Angelo.

Benchmark’s Matt Cohler, who spearheaded the deal alongside Peter Fenton, will join Instagram’s Board. He joins Instagram co-founder Kevin Systrom and Baseline’s Steve Anderson there, reports TechCrunch. The iPhone photo-sharing app already has more than 1.5 million users, the report said.

Panasonic reports earnings, plans for growth

Panasonic Corp., Osaka, Japan, reported its consolidated financial results for the third quarter and nine months ended Dec. 31, 2010, of fiscal year 2011, ending March 31, 2011.

Compared to the same period a year ago, consolidated group sales for the third quarter increased 21 percent to 2,285.5 billion yen, from 1,886.6 billion yen. Of the consolidated group total, domestic sales amounted to 1,200.6 billion yen, up 19 percent from 1,004.9 billion yen and overseas sales increased to 1,084.9 billion yen, up 23 percent from 881.7 billion yen.

During the third quarter, although the bleak employment scenario continued to plague developed countries, the global economy has recovered gradually, due mainly to economic stimulus plans in several countries and the sustained high-growth in emerging countries.

In such business conditions, Panasonic group launched a new midterm management plan called “Green Transformation 2012 (GT12)” in the beginning of fiscal 2011. In GT12, Panasonic aims to integrate environmental protection and business growth, and to become ‘Panasonic Group filled with significant growth potential’ in fiscal 2013.

Panasonic resolved at the Board of Directors meeting held in July 2010, to pursue a plan to make Panasonic Electric Works Co. Ltd. (PEW) and SANYO Electric Co. Ltd. (SANYO) wholly-owned subsidiaries. After completing the tender offer for the shares of common stock of both companies, share exchange agreements were executed between Panasonic and PEW, and between Panasonic and SANYO, in December 2010. The acquisitions are scheduled to be completed through share exchange in April 2011, subject to approval of the share exchange agreements at extraordinary general meetings of PEW and SANYO in March 2011. The company is in the process of finalizing its growth strategies and reorganizing business structure in order to maximize synergy for the entire Panasonic Group. Panasonic will accelerate this process in order to achieve its GT12 targets.

Regarding earnings, compared to the same period a year ago, operating profit for the third quarter was 95.3 billion yen, down from 101.0 billion yen. This result was due mainly to price decline in products. The pre-tax income was 82.7 billion yen, up from 81.1 billion yen. Accordingly, net income attributable to Panasonic Corporation totaled 40.0 billion yen, up from 32.3 billion yen.

Consolidated group sales for nine months ended December 31, 2010 increased 27 percent to 6,653.4 billion yen, compared with 5,219.9 billion yen a year ago. Domestic sales amounted to 3,390.1 billion yen, up 22 percent from 2,780.9 billion yen a year ago, while overseas sales increased 34 percent to 3,263.3 billion yen, up from 2,439.0 billion yen a year ago.

Digital AVC Networks

Sales in this segment increased to 2,585.4 billion yen, up 0.3 percent from 2,578.2 billion yen a year ago. Despite a decline in sales of mobile phones and digital cameras, this result was due mainly to favorable sales of Blu-ray Disc recorders and flat-panel TVs. Operating profit increased 91 percent to 101.2 billion yen, from 52.9 billion yen, mainly as a result of fixed cost reduction and comprehensive streamlining efforts, offsetting the impact of the yen appreciation.

Components and Devices

Sales in this segment increased to 713.8 billion yen, up 1 percent from 703.7 billion yen a year ago, due mainly to steady sales in general electronic components, despite a decline in sales of batteries and semiconductors. Operating profit improved 28% to 29.1 billion yen, from 22.9 billion yen a year ago. This was due mainly to fixed cost reduction and comprehensive streamlining efforts.


Sales in this segment totaled 1,223.0 billion yen. The sales of solar cells, car-related equipment and general electronic components were favorable, while the sales of digital cameras and rechargeable batteries were sluggish due to weak demand. Operating profit resulted in 0.4 billion yen, after incurring the expenses such as the amortization of intangible assets recorded at acquisition.

British retailers accuse DVLA of unfair photo monopoly

The Daily Telegraph reports a group of retailers, including PhotoMe, Jessops and Timpson, has accused government agencies of “plundering” their revenues in a shady effort to bolster Britain’s ailing Post Office network.

According to the article, the retailers “allege the Driving and Vehicle Licensing Agency (DVLA), which is overseen by the Department for Transport, has handed an effective monopoly of the driving licence photo market to the Post Office.”

The photo booth operators are concerned that the UK Border Agency, which is part of the Home Office, is in the process of giving a similar contract to process Biometric Residence Permits directly to the Post Office, too.

Nigel McNaught of PMA International, which is supporting the retailers, is quoted by The Daily Telegraph: “The DLVA has given the Post Office the mandate to handle its license application form. The introduction of other official identity requirements looks set to follow. This is an important market for the retailers and its wrong that the Government is handing it all to the Post Office at the expense of retailers. The Post Office receives £330m of Government subsidies to provide essential services that are not present elsewhere. But this service is being provided elsewhere. If this business is taken away, then it’s our members’ businesses that’s in jeopardy. Our members have asked for MPs to investigate immediately.”

In memoriam: Hans Kuhlmann

PMA Distinguished Service Award Recipient for 2000, Hans G. Kuhlmann, died Jan. 31. Kuhlmann had a 40-year career with the Agfa-Geveart Group, culminating with a term as president of the Consumer Imaging Division of Agfa Corp. Under his direction, the company increased its strength and marketshare in several arenas, including wholesale photofinishing equipment, independent photo specialty and professional markets. While focusing on the diversification of the industry, Kuhlmann helped Agfa expand its manufacturing, facilities in the U.S.A. and establish itself as a market leader in providing private-label consumer film. Kuhlmann later worked in a consulting role for Photofinishing News.

In addition to receiving the PMA Distinguished Service Award, Kuhlmann also received the IPC Leadership Award, the Society for Imaging Science and Technology top award and the Lieven-Gevaert Award for outstanding achievements in the field of silver halide imaging.

A funeral mass will be held at Our Lady of Good Counsel in Washington Township, N.J., on Feb. 5 at 10:00 a.m. Viewing is being held at Becker Funeral Home in Westwood, N.J. on Feb. 4 from 2:00 – 4:00 p.m. and 7:00 – 9:00 p.m

Condolences may be sent to the family at 29 Rumson Court, Waretown, NJ 08758