Saturday, July 30, 2011

Vistaprint shares PLUNGE

On July 28th, after the stock market closed, Vistaprint NV released its results for its fiscal Q4 2011 and for its full-year-ended June 30, 2011.

Q4 Revenues were up over the same period one year earlier and beat analyst estimates. ($208.8 mil vs. $205.8 mil)

Q4 net income was $14.4 mil, up from $11.7 mil one year earlier.

In my opinion, not bad results, considering the lack of strength in the overall economy.

However, at the same time Vistaprint released its results, it lowered guidance – for future revenues and earnings – below estimates previously issued by analysts, and I guess that’s what caused Vistaprint’s price-per-share to plunge.

And “plunge” is, most definitely, the operative word, for Vistaprint’s share price fell from $ 42.40 to $ 26.70 in just one day!

That’s a stunning plunge!

ARC will report its Q2 2011 results on August 4th, after the market closes. For those of you who own ARC stock, keep your fingers crossed that ARC has some good news in its report.

“Life After Reprographics” – Mark Sirangelo

Mark Sirangelo was the first (non-reprographer, non-owner) President of ReproCAD. Subsequent to ReproCAD, Mark held positions with Rowley-Scher Reprographics (first as Executive Vice President, then, later on, as President.) Mark’s come a long, long way since his stints in the reprographics industry!

Mark is the Chairman of the Commercial Space Flight Federation.

Mark Sirangelo is also the Chairman of Sierra Nevada Space Systems, a leading producer of satellites, propulsion systems and space sub-systems and is also the Executive Vice President of Sierra Nevada Corporation, a billion dollar aerospace and defence firm.

Mr Sirangelo was the Chairman & CEO of SpaceDev, Inc., prior to its merging with Sierra Nevada Corporation. Prior to SpaceDev, he was the CEO of the QuanStar Group, an advanced technology commercialisation and investment company that identified promising technology companies and actively assisted in their growth. In addition to QuanStar, Mr Sirangelo founded and acted as Chairman and CEO of a major global communications firm, was an officer in an international investment bank and was an entrepreneurial managing partner in high growth technology design firm.

Mr Sirangelo’s board memberships include being the Chairman of the Commercial Spaceflight Federation, the founding Chairman of the Center for Space Entrepreneurship, the California Space Authority, the National Center for Missing & Exploited Children and the International Centre for Children.

Corporate and personal awards include the Defense Industry’s Fast Track 50, Deloitte’s Fast Track 500, NASA/Space Foundation’s Technology Hall of Fame, Ernst &Young’s Entrepreneur of the Year and Inc. Magazine’s top 200 companies. Mr Sirangelo holds Doctorate, MBA and Bachelor of Science degrees, has been scientifically published, and has served as an officer in the US Military.

Quick Profile – BW Reprographics, LLC – a “full-service” reprographics company operating in the New York – New Jersey market area

BW Reprographics was founded around the time that Louis Frey Co was dissolved in Chapter 7 Bankruptcy proceeding.

From the September 2003 Issue of “Repro Report Weekly”.....

“A Closer Look at New York’s Newest: BW Reprographics”

There’s an old adage that says, “the acorn doesn’t fall far from the tree.” It’s an apt description for many in our familial industry, but it’s simply not ambitious enough for 20-year repro veteran Bruce Wiener. Responsible for sales and customer service satisfaction for the majority of his 20-plus years with Louis Frey Co., Wiener is proud of the solid revenue growth and loyal customer relationships developed on his watch. He has, however, wondered if there might be a better way. A better way to do what? A better way to serve today’s customers, whose demands are quite different than they were 10-20 years ago.

As a leader in the facilities management field, with numerous sites estab- lished over the years, Wiener saw an opportunity to leverage the industry’s technological advancements and in early 2003 launched BW Reprographics LLC in the heart of the Big Apple.

“It’s important to utilize the latest customer driven technologies when you begin without a structured legacy and determine how they can best position you for the future,” Wiener says. “Obviously the biggest challenge to setting a business in motion is cultivating clients and giving them a reason to move with you. When you have a 20-year history in a city like New York, and you’ve dealt with thousands of people, the name recognition is a huge asset. But in the end, you’re doing what everyone does: knocking on doors, creating added value and giving 110 percent everyday.

BW Repro has more than met the challenge. Building from the ground-up with the support of loyal customers and colleagues, Wiener opened a 3,000-sq. ft. facility near the Empire State Building and Penn Station. He has started producing numerous client orders, secured some FMs and, because many architects and engineers have migrated across the river over the last couple of years, is opening a second location in suburban New Jersey.

“It’s very exciting,” Wiener says. “Each location will be fully equipped with the best hardware out front to serve the customers’ imaging needs and the best systems software in the back office to improve client communication.”

Specifically, BW Repro is investing in cost-capture technology, Internet connectivity and other processes that cutting edge firms are using to convert from manual to automated digital workflow and improve their communications.

“In order to provide the best technology solutions, we have already established alliances with leading providers of document management software and reprographic systems to optimize our clients’ communications management efforts,” Wiener says. “We will also use technology, such as online communication and billing software packages, which will integrate with our clients’ document management and IT infrastructure to provide seamless and real- time management.”

Wiener’s aim is to provide BW Repro’s customers both high quality reproductions and “advancing values” – and by the latter he means “services that will help customers excel in their own business.”

“By concentrating on keeping our backroom operations streamlined and highly motivated, we will be able to provide our clients with a winning equation,” he says. Highest quality output plus progressive document support systems and superior value – this is the ‘new math’ that many reprographic clients are asking for.”

The equation extends to forming key alliances with companies that share a comparable vision and service ethic.

“In today’s environment, you need to be efficient, and for me that means having core professionals and forming the proper alliances. As I see it, your best alliances start with a strategic partner with an excellent product and a responsive support team, but there also has to be the sense that they’re on the same page and are equally committed to adding value to your client.”

In addition to operating the two commercial shops, BW Reprographics LLC will also be extremely active in the FM arena, an area Wiener helped pioneer several years before it became a widespread practice.

“These key ingredients – quality, dependability and continuous improvement – are even more critical in the facilities management environment,” Wiener explains. “The ongoing value of FM services is changing rapidly. Reprographic firms must recognize this value and be proactive in advancing their abilities for the customer.”

Joel’s comment (actually, a question): Is BW Reprographics still "independent", still owned by Bruce Weiner?

Quick Proflle – Tri-State Reprographics, Pittsburgh, PA

I thought I knew all of the reprographics companies active in the Pittsburgh, PA market, but I guess not. Today, I came across Tri-State Reprographics, and, based on the history I read, they are a long-standing, well-established player in the Pittsburgh market area. George Marshall, grandson of the original founder, is the third-generation of the Marshall family to lead the company. Tri-State is full-service reprographics firm.


It was 1942, when the newly introduced mercury vapor lamp was revolutionizing the blueprinting industry by enabling consistent exposures and speeds, that Jacob B. Marshall founded Tri-State Blueprinting, now know as Tri-State Reprographics. 805 Liberty Avenue was the first location of Tri-State and Jacob's first printing job was a WWII airstrip being designed by the newly formed Michael Baker Engineers.

Robert Marshall, Jacob's son, joined his father in the business in 1949. By 1956 Robert had moved to a leadership role in the company and moved the company to a new larger location at 237 Fifth Avenue. It was there, through his dedication and knowledge, that Tri-State Blueprinting increased its capabilities and services.

By the time the 1970's rolled around, Tri-State was well prepared to participate in the growth that took place during Pittsburgh's Renaissance, and the company grew. Construction projects including the Medical Center of Beaver County, Sewickley Valley Hospital, Allegheny General Hospital, Magee Women's Hospital, USX Tower, One Oxford Center, PPG Place and One Mellon Bank Center all contributed to Tri-State Blueprinting's prosperity.

Tri-State Reprographics' current president, George Marshall, joined the business in the late 1970's. Picking up the reins like his father and grandfather before him, George led Tri-State into new growth during the 1980's. In 1982, Tri-State Reprographics moved to 911 Penn Avenue and continued to participate in the growth of Pittsburgh through such projects as the Vista Hotel and Federated Towers of Liberty Center, CNG Tower and Fifth Avenue Place.

Tri-State Blueprinting continued to establish itself as an industry leader by providing the reprographics needs of Allegheny County's largest ever construction project, the Midfield Terminal for the new Pittsburgh International Airport. George Marshall met the challenge of outputting enormous volumes of printing in a timely manner, by introducing an on-site printing facility. In concert with the other contractors working on the job, Tri-State was able to serve the project's reprographics requirements by implementing this on-site facility management program.

At the same time, Tri-State continued to seek leading edge technology and partnered with C4 to provide a national digital network serving the needs of the industry as it moved to computer aided drafting and design. Tri-State Blueprinting was the first in the area to offer large format digital color output and top quality color plotting and graphics for the AEC and advertising industries.

At Tri-State Reprographics, we never rest in our commitment to remain on the leading edge as we continue to reach out, diversify and grow. Our primary purpose is to build upon our existing foundation. Quality, service and competitiveness are what we offer. We hope to be considered the best — we want to be a true value to our customers.

No more politically oriented posts on this blog

Yesterday, I put up a politically-oriented post, and, today, I decided to pull it down.

The question that some of you might ask is, “why did Joel pull down that post?”

For two reasons:

a) the “headline” of this blog states the following….

Reprographics 101 (more than you ever wanted to know about the reprographics industry)…..

Facts and opinions related to the reprographics business and the reprographics industry as well as articles and information related to the A/E/C industry served by reprographers. This blog is intended for reprographers, for vendors who sell to reprographers and for analysts and investors who are interested in learning more about the reprographics industry.

b) after I put up that post, one of my blog-visitors (Tom T) submitted this comment:

"Stick to repro commentary...please don't go there with political commentary."

That’s not all that Tom T said, but the rest of what he said has no bearing on my decision to pull down the post.

But, Tom T was right. The stated purpose of this blog is to deal with facts and opinions about the reprographics business and industry – and to share issues that affect the reprographics business and industry, and, because that’s the stated purpose of this blog, I’ve decided that I must stick with that, for making comments about things that are not germane is, well, an inappropriate use of this blog. I will likely start a politically-oriented blog of my own, but, if I do, that blog will be completely separate from Reprographics 101.

Friday, July 29, 2011

US revises down recovery rate

It would certainly be nice if "they" would keep the number straight the first time they issue them!

July 29, 2011

US revises down recovery rate

By Robin Harding (of – that’s the “Financial Times”) in Washington

A dramatic set of revisions to US growth data on Friday have revealed that the economy is recovering more slowly than previously thought from a much deeper recession.

The Bureau of Economic Analysis said that the economy grew at an annualised rate of only 1.3 per cent in the second quarter and revised down its estimate of first-quarter growth to only 0.4 per cent from 1.9 per cent.

But it also made annual revisions to its data that showed the recession of 2008 and 2009 was much worse than previously thought. Growth in 2008 was revised down to minus 0.3 per cent from flat while 2009 growth was revised down to minus 3.5 per cent from minus 2.6 per cent.

“For the recession as a whole, gross domestic product declined by 5.1 per cent rather than 4 per cent as previously reported, far and away the steepest economic decline since World War Two,” said William Seyfried, professor of economics at Rollins College.

The revisions mean that the sluggishness of the recovery is even more alarming. The economy would normally be expected to bounce back faster from a deeper recession, simply because there was more spare capacity to put back to work.

The revisions imply that the jobs market has been a much better guide to the true health of the economy than the initial growth numbers. The unemployment rate has remained stuck at 9.2 per cent, not far below its 10.1 per cent peak.

That reflects an economy that was $134bn smaller at the end of 2010 – almost a full percentage point – than the BEA had previously thought. The biggest reason for the revision was a large cut in the BEA’S estimate of consumption.

Looking forward, the data send mixed signals about whether the economy can bounce back strongly in the second half, as many economists forecast.

Consumption contributed only a 10th of a percentage point to growth in the second quarter, but that reflected a surge in oil prices and disruption to car supplies because of the earthquake in Japan, factors that should be reversed in the third quarter.

Business investment was encouragingly robust, contributing 0.7 percentage points to second-quarter growth, and there were hints that construction activity has hit bottom.

But government spending subtracted 0.2 percentage points from growth and that would have been even worse had it not been for strong defence expenditures. As the spending cuts under discussion in Congress bite, government is likely to knock even more off growth in the second half.

The danger now is that the economy has weakened to a point that will become self-reinforcing, with consumers and businesses so doubtful about the recovery that they further reduce their spending, undermining any rebound.

The economic weakness means that the timing for a possible debt limit shock could not be worse, and if there is another quarter of disappointment from the labour market, there are likely to be renewed calls for the Federal Reserve to step in with further monetary stimulus.