SFLY

[njshiva]

I like this one because their revenues are high during the holiday season and IPO timing looks perfect. 
Tranding around 15.8 now.


Shutterfly goes public after riding out dot-com bust
Marketwatch - September 29, 2006 1:22 PM ET

Born during the boom of 1999, Shutterfly carried the pedigree of investor Jim Clark, known as a guru behind Netscape and Healtheon.

The company weathered the dot-com bust in the IPO market as well as competition in the photo business from the likes of Kodak (EK), Ludicorp and Snapfish to finally go public on Friday.

IPO commentator Tom Taulli said Shutterfly has deployed a mix of new economy and old economy elements by combining online photo distribution with traditional businesses such as photo prints and memorabilia.

Shutterfly marks the latest in a resurgence of tech-flavored IPOs after DivX (DIVX) and Riverbed Technology (RVBD) rallied last week.

Meanwhile, cosmetics firm Bare Escentuals (BARE) turned in a double-digit percentage gain in its stock market debut Friday. See full story.

"There's a comeback in tech IPOs -- at leas some inkling of a comeback," Taulli said. "Investors want to buy tech again. They want to find growth and that's spilling over to the IPO market."

Taulli added that hedge funds could be bidding up shares of IPOs in an attempt to boost lagging returns this year.

Shutterfly Inc. (SFLY) priced 5.8 million shares at $15 a share in a bid to raise $87 million. The company's shares opened at $15.50 a share and rose to $16.06 in recent trades.

The Redwood City, Calif. firm priced at the top of its $13-$15 range with underwriters J.P. Morgan, Piper Jaffray and Jefferies.

With 23.6 million shares outstanding in the IPO, Shutterfly is going public with a market cap of about $354 million, or about 4.2 times its 2005 revenue.

After surviving the tech bubble burst of 2000, Shutterfly filed to go public after turning a profit for the last three years.

Shutterfly's 2005 profit rose to $28.9 million on $84 million in revenue, compared to a profit of $3.7 million on revenue of $55 million in 2004. It also posted profits in fiscal 2003.

For the first six months of the year, the company reported a net loss of $3.7 million and revenue of $36.5 million, compared to a loss of $1.3 million and revenue of $27.3 million in the year-ago-period.

Netscape co-founder Jim Clark owns about 30% of the company after the IPO. Venture firms Mohr, Davidow Ventures and Sutter Hill Ventures own 17% and 7% respectively.

Shutterfly generates revenue primarily from printing and shipping photo prints and products, such as photo books, cards and calendars, and merchandise such as mugs, mouse pads and magnets.

Over the past seven years, the company has taken more than 11 million orders, sold about 350 million prints and stored more than 900 million photos in its image archives.

The company sees growth in the online photo category with the wider use of digital cameras, penetration of high-speed Internet connectivity and participation in online communities.

The company bills itself as an Internet-based social expression and personal publishing service.

[njshiva]

took a small position, since the IPO sector looks hot.
everyone talks  about their high expenses which worries me

[njshiva]

Shutterfly Jumps on 4Q Report, Outlook
Friday February 9, 3:17 pm ET
Investors Cheer Shutterfly's 4th-Quarter Report, Outlook; Shares Rise 10 Percent

NEW YORK (AP) -- Shares of online photo services provider Shutterfly Inc. jumped in Friday afternoon trading, after the company reported strong fourth-quarter results and raised guidance.

Shares advanced $1.43, or 10.4 percent, to $15.17 on the Nasdaq, having hit $16.63 earlier in the session, just shy of the company's high since going public in late September.

Shutterfly makes prints, cards, calendars, books and other gift items from digital photographs customers upload to its Web site. On Thursday the company said its fourth-quarter profit rose 91 percent, beating analyst expectations, and guided for a surge in first-quarter sales.

Jefferies & Co. analyst Youssef H. Squali reiterated a "Buy" rating on the stock and lifted his target price to $20 from $16.

Squali said the company's strong results reflect a good reputation for Shutterfly's premium brand, a loyal customer base and leverage in its vertically integrated model.

JPMorgan Securities Inc. analyst Imran Khan maintained an "Outperform" rating, predicting growth ahead.

"We believe the company's new product introductions in the personalized product segment will continue to attract new customers, especially given that many of its latest products are not offered by competitors," wrote Khan. These include Valentine's Day gift items, he said.

[njshiva]

Shutterfly Added to Russell 3000 Index, Russell 2000 Index and Russell Microcap Index
Monday February 19, 4:01 pm ET
REDWOOD CITY, Calif.--(BUSINESS WIRE)--Shutterfly, Inc. (NASDAQ:SFLY - News), an Internet-based social expression and personal publishing service, today announced that it has been added to the Russell 3000® Index, the Russell 2000® Index of small-capitalization stocks and the Russell Microcap(TM) Index.
"Being included in the Russell Indexes shortly after our initial public offering is an honor and will help increase Shutterfly's visibility with investors," said Jeffrey Housenbold, president and chief executive officer of Shutterfly. "It is a clear validation of our market leadership position, winning strategy and strong execution."

The Company's inclusion was part of the Frank Russell Co.'s annual index reconstitution process, which became effective December 15, 2006. The Russell 3000 index measures the stock performance of the 3,000 largest U.S. companies based on total market capitalization. The Russell 2000 index measures the performance of the 2,000 smallest companies in the Russell 3000 index. The Russell Microcap Index is constructed to provide a comprehensive and unbiased barometer for the microcap segment trading on national exchanges.