Vistaprint reports $34 million loss and sells Albumprinter Division – but Q4 revenues still up 18%

Robert Keane.
Robert Keane.

Netherlands-based Cimpress, the parent company of web-to-print leader Vistaprint, has reported a $34.7 million loss in its fourth quarter and fiscal year ending June 30. The loss was attributed to pressure on gross profits from shipping, expansion of product lines, and unfavourable currency fluctuations. Also, acquisition-related charges and the termination of two partner contracts added to the losses – as well as the restructuring charges related to the reorganization of the company. Despite all this, Cimpress CEO Robert Keane believes that the company’s new strategy and direction moving forward bodes well for its future. In fact, revenues for Cimpress’ fourth quarter were $564 million – an increase of 18% compared to last year. Gross margins were 50.5%, down from 53.7% for the same quarter last year. Net loss was 6.2% of revenue compared to net income of $16.9 million (or 3.5% of sales) for the same quarter last year. Capital expenditure for the fourth quarter was $17 million.

Cimpress has also sold its Albumprinter Division that it acquired in 2011 for about $92 million. The Albumprinter division includes Albelli, Bonusprint, Fotoknudsen and Onskefoto brands. Although its Albumprinter Division fell within Cimpress’ target market mass customization strategy, the company believes that the funds can be better used if they’re invested in other initiatives. Vistaprint is the second largest printer in Canada. Its Canadian production facility in Windsor, Ontario currently serves all of North America.

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Tony Curcio is the editor of Graphic Arts Magazine.