Stamps.com Sees Internet Postage As ‘Viable’

Stamps.com lost nary a moment after rival E-Stamp exited the
Internet postage business, issuing a statement saying that it “continues to
lead the category with 80 percent of all customers using Internet Postage.”

“The software-based solution offered by Stamps.com is clearly the preferred
service in the marketplace,” crowed Seth Oster, vice president of corporate
communications. “We welcome E-Stamp’s customers to join the more than 270,000
customers using our software-only service.”

E-Stamp had another idea, however, and signed a deal referring
its customers to French postal equipment maker Neopost Online, encouraging
them to adopt Neopost’s Internet Postage solution, called “Simply Postage.”

E-Stamp said
on Monday
that it is “phasing out” its Internet postage product line and
will instead focus on its Web-based shipping and logistics solutions.

Oster went on to say in a press release that “We believe Internet Postage
remains a viable emerging opportunity. The U.S. Postal Rate Commission echoed
our confidence last week by recommending the creation of a new mail class
that would carry a discounted rate for First Class mail sent through our
service. As with any new technology, widespread adoption takes place over
time.

“Coupled with our online shipping services and cash reserves of more
than $250 million, we are in a strong position to grow our core businesses
and take our company to profitability,” he said.

Profitability certainly could not come any too soon, however. Stamps.com,
which has never made any money, was trading at $2.84 this morning. Its
52-week high is $98.50. The company laid off 240 workers in October, two
weeks after Chief Executive Officer John Payne and several other top execs
all quit.

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