MARINA DEL REY, Calif., March 31 /PRNewswire-FirstCall/ -- AdStar,
Inc. (OTC:ADST) (BULLETIN BOARD: ADST) , the leading provider of
e-commerce transaction services and payment processing software for
the digital and print advertising and publishing industries, today
reported its operating results for the year ended December 31,
2007. Net revenues for the year ended December 31, 2007 totaled
$4,760,000, compared with net revenues of $5,114,000 in 2006. ASP
revenues remained constant at $1,910,000 in 2007 as a result of the
addition of seven new publications since 2006, offset by the loss
of two publications during the same period and decreases in the
volume of transactions from several customers. Fewer non-recurring
projects undertaken during 2007 resulted in a decrease in
customization revenues of $161,000, to $568,000 in 2007. Licensing
and software revenues declined by $195,000, or 8 percent, to
$2,282,000 in 2007. Gross profit of $2,693,000 represented a 56.6
percent gross margin on revenues in the year ended December 31,
2007, compared with a gross margin of 58.7% in 2006. Prepaid ads
processed during 2007 using AdStar's ASP technology infrastructure
decreased by nine percent to approximately 353,000 transactions.
Total ads processed, including large contract accounts, decreased
by seven percent to approximately 480,000 transactions in 2007.
AdStar reported a net loss applicable to common shareholders of
$3,310,000, or $0.16 per share, in 2007, versus a net loss of
$1,393,000, or $0.07 per share, in 2006. The loss in 2007 was
attributed to the decrease in net revenues as well as an increase
in operations costs of $1,678,000, of which $690,000 represented
increased stock option expense. Increases in selling and marketing
expenses, as well as product maintenance and development costs,
were primarily due to the planning and development of AdStar's new
software applications related to mobile advertising. EBITDA (a
non-GAAP measure), or earnings before interest, taxes, depreciation
and amortization; before stock option expense, totaled a proforma
negative $2,008,000 in 2007, compared with a negative EBITDA of
$435,000 in 2006. (See EBITDA table at end of this release for
further non-GAAP information). "The contraction in newspaper print
advertising throughout the industry is having a significant impact
on our core business," stated Leslie Bernhard, president and chief
executive officer of AdStar, Inc. "We will continue to support the
newspaper industry with Web-based ad sales and payment processing
services, while we direct our focus towards providing advertising
services in new publishing channels. Our mobile advertising order
entry dashboard development activities during the past year have
allowed us to target new digital publishing opportunities, and we
anticipate traction in this area during the months to come. We will
continue to develop strategic partnerships and pursue business
opportunities with content publishers, and we have launched a major
initiative to advance sales and partnership opportunities in the
wireless industry." As of December 31, 2007, AdStar's cash and cash
equivalents approximated $717,000, compared with $2.5 million as of
December 31, 2006, a net decrease of $1,828,000. Bernhard
concluded, "We have significantly reduced expenses in recent
months, reflecting the completion of our recent development
activities, and this should allow our cash requirements to decline
substantially going forward." AdStar will conduct an investor
conference call to discuss 2007 operating results and the outlook
for the balance of the year on April 1, 2008, at 4:15 p.m. EDT.
Shareholders and other interested parties may participate in the
conference call by dialing 800-860-2442 (international/local
participants dial 412-858-4600) and asking to be connected to the
"AdStar Conference Call" a few minutes before 4:15 p.m. EDT on
April 1, 2008. The call will also be broadcast live on the Internet
at http://www.adstar.com/. A replay of the conference call will be
available one hour after the call ends on April 1, 2008 through
April 8, 2008 at 5:00 pm EDT by dialing 877-344-7529
(international/local participants dial 412-317-0088) and entering
the conference ID 417911. The replay of the call will be archived
on the company's website at http://www.adstar.com/ until June 1,
2008. About AdStar, Inc. AdStar, Inc. (OTCBB: ADST) is a leading
provider of e-commerce transaction services and payment processing
solutions for the digital and print advertising and publishing
industries. AdStar's proprietary suite of e-commerce services
includes remote ad-entry software, mobile and web-based ad
transaction and campaign management services, and payment
processing and content processing solutions. AdStar is
headquartered in Marina del Rey, Calif. and its Edgil Associates
subsidiary is located in Billerica, Mass. For more information on
AdStar, visit http://www.adstar.com/. Forward Looking Statements
This release contains forward-looking statements concerning the
business and products of the Company. Actual results may differ
from those projected or implied by such forward-looking statements
depending on a number of risks and uncertainties including, but not
limited to, the following: historical business has already matured,
new online business is unproven and may not generate expected
revenues, and Internet security risks. Other risks inherent in the
business of the Company are described in Securities and Exchange
Commission filings, including the Company's annual report on Form
10-KSB. The Company undertakes no obligation to revise or update
any forward-looking statements to reflect events or circumstances
after the date of this release. AdStar Company Contact: Jeff Baudo,
310-577-8255, AdStar Media Contact: Kevin Wilson, 513-898-1008,
Financial Tables to Follow AdStar, Inc. and Subsidiary Consolidated
Balance Sheet As of December 31, 2007 Assets Current assets: Cash
and cash equivalents $717,000 Accounts receivable, net of allowance
for doubtful accounts of $71,000 571,000 Notes receivable from
officers - current portion 9,000 Prepaid and other current assets
126,000 Total current assets 1,423,000 Notes receivable from
officers, net of current portion 197,000 Property and equipment,
net 109,000 Capitalized and purchased software, net 261,000
Intangible assets, net 1,133,000 Goodwill 2,132,000 Other assets
40,000 Total assets $5,295,000 Liabilities and Stockholders' Equity
Current liabilities: Due to publications $1,223,000 Accounts
payable and accrued expenses 630,000 Deferred revenue and customer
deposits - current portion 113,000 Capital lease obligations -
current portion 6,000 Total current liabilities 1,972,000 Deferred
revenues, net of current portion 24,000 Capital lease obligations,
net of current portion 20,000 Total liabilities 2,016,000
Commitments and contingencies Stockholders' equity: Preferred
Stock, par value $0.0001; authorized 5,000,000 shares; 0 issued and
outstanding - Common Stock, par value $0.0001; authorized
40,000,000 shares; 20,209,648 issued and 20,141,852 outstanding
2,000 Additional paid-in capital 27,051,000 Treasury stock; 67,796
shares, at cost (68,000) Accumulated deficit (23,706,000) Total
stockholders' equity 3,279,000 Total liabilities and stockholders'
equity $5,295,000 AdStar, Inc. and Subsidiary Consolidated
Statements of Operations For the Years Ended December 31, 2007 and
2006 2007 2006 ASP, net $1,910,000 $1,908,000 Licensing and
software 2,282,000 2,477,000 Customization and other 568,000
729,000 Net revenues 4,760,000 5,114,000 Cost of revenues,
including depreciation and amortization of $339,000 and $432,000
2,067,000 2,112,000 Gross profit 2,693,000 3,002,000 General and
administrative expense 2,226,000 1,900,000 Product maintenance and
development costs 1,627,000 934,000 Selling and marketing expense
2,127,000 1,468,000 Amortization of customer list 88,000 88,000
Loss from operations (3,375,000) (1,388,000) Interest income 78,000
13,000 Interest expense (5,000) (5,000) Loss before income taxes
(3,302,000) (1,380,000) Provision for income taxes (8,000) (13,000)
Net loss $(3,310,000) $(1,393,000) Loss per share - basic and
diluted $(0.16) $(0.07) Weighted average number of shares - basic
and diluted 20,122,014 19,339,000 AdStar, Inc. and Subsidiary
Calculation EBITDA For the Years Ended December 31, 2007 and 2006
2007 2006 Net Loss $(3,310,000) $(1,393,000) Provision for Income
Taxes 8,000 13,000 Interest Expense (Income), net (73,000) (8,000)
Depreciation and Amortization 508,000 593,000 Stock Compensation
859,000 360,000 EBITDA $(2,008,000) $(435,000) The Company defines
EBITDA as net loss before interest, taxes, depreciation and
amortization, and non-cash expense for securities. Other companies
may calculate EBITDA differently. Management believes that the
presentation of EBITDA provides a meaningful measure of performance
that approximates cash flow before interest expense, and is
meaningful to investors. DATASOURCE: AdStar, Inc. CONTACT: Jeff
Baudo of AdStar, Inc., +1-310-577-8255, ; or Media, Kevin Wilson,
+1-513-898-1008, , for AdStar, Inc. Web site:
http://www.adstar.com/
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