CafePress announces changes to Board of Directors, business update, cost saving initiatives

GaryPageau
LOUISVILLE, Ky., Feb. 13, 2018 (GLOBE NEWSWIRE) — CafePress Inc. (NASDAQ:PRSS), a leading retailer of personalized products offering a wide variety of expressive gifts and accessories, (“CafePress” or the “Company”), today issued the following statement.

“We continue to make progress on completing the modernization of the CafePress.com website. These efforts are critical as we continue to optimize the business and enhance our technology to re-energize our customer experience and ultimately return to profitable growth, which has always been our top priority.  As the gap on the bottom line has widened in recent quarters, we are taking additional serious cost control steps to hasten closing that gap,” commented Fred Durham, Chief Executive Officer.

As previously discussed, the Company experienced revenue declines in the second and third quarters of 2017, which the Company believes were related to changes in search engine algorithms that have adversely affected the Company’s search visibility and traffic on the current site.  The Company remains focused on completing the modernization of CafePress.com and demolishing the old site and will roll out significant portions of the modernization in the first quarter of 2018.  During the fourth quarter of 2017, the Company experienced revenue declines compared to the same period of the prior year consistent with those experienced over the second and third quarters of 2017.  However, as is always the case during this seasonally busy time of year, the Company increased cash and cash equivalents on its balance sheet during the fourth quarter.

With the context above in mind, the Company deems it necessary to take some immediate steps which have short-term and long-term impacts to mitigate the pressure on our cash balances.  Today the Company is announcing certain actions (impacting both labor and non-labor) taken to drive reductions of approximately $4 million in normalized, annual fixed costs.  The Company will continue to align its cost structure, cash balances and operational objectives each quarter to maintain discipline in the Company’s operation.

The Company will remain focused on completing a new and modern CafePress.com website and expanding retail partner channels into new marketplaces and geographies.   Additionally, in 2018, the Company expects to leverage its manufacturing platform by launching fulfillment services for other consumer-facing, on demand, custom product providers.

The Company has taken the following steps:

  • On February 12, 2018, the Board appointed Alan B. Howe as an independent director, following the retirement of Patrick J. Connolly from the Board.
  • As of January 9, 2018, the Company has reduced the workforce at its Louisville headquarters by 5%.
  • Effective as of February 5, 2018, the annual base salary of the Company’s Co-Founder, Chairman and Chief Executive Officer, Fred E. Durham III, is reduced from $300,000 to $125,000.

CafePress’ Board of Directors and management team consistent with its fiduciary duty continues to carefully consider all options to enhance stockholder value.

About CafePress (PRSS):

At CafePress, our mission is to create human connection by inspiring people to express themselves.  We believe a coffee mug can start a conversation and a t-shirt can ignite a movement.

Founded in 1999 and based in Louisville, Kentucky, CafePress is the recognized pioneer of customizable products.  Our global online platform enables people to express themselves through engaging community generated designs and licensed and personalized one-of-a-kind products.