IRVINE, Calif., Aug. 17 /PRNewswire-FirstCall/ -- DigitalPost Interactive, Inc. (OTC Bulletin Board: DGLP), www.dglp.com, a leader in web-based interactive digital media applications, reported financial results for the three months ended June 30, 2009.

DigitalPost Interactive Chief Executive Officer Michael Sawtell commented: "During the second quarter of 2009 we continued to grow our top line revenue and came within $2,700 of 'break even' on a cash basis. This is a result of our ongoing efforts to increase operational efficiencies while continually adding new contracts to our business pipeline."

Second-Quarter 2009 Financial Highlights

--Total revenue for second-quarter 2009 rose more than 161% to $376,400, from $144,200 in second-quarter 2008. The increase was driven by more than 211% growth in subscriptions revenue, which was due to the Company's partnership with Kiddie Kandids, and more than 126% growth in professional services revenue. Growth of professional services revenue during second-quarter 2009 was due to higher activity by business partners seeking to enhance market visibility via interactive media.

--Cash used in operations improved significantly to $2,700 for second-quarter 2009 as compared to $460,800 for the same period last year. The improvement reflects the Company's ongoing effort to streamline operations while driving more revenue through the growth of recurring subscriptions and through the professional services contracts that have been awarded.

--Net loss for second-quarter 2009 narrowed to $424,200 from a net loss of $1.5 million in second-quarter 2008. The net loss for second-quarter 2009 includes non-cash items of $168,300 in non-cash stock-based compensation, $154,700 of non-cash amortization of debt discounts, $62,400 of non-cash beneficial conversion liability and $38,900 of non-cash depreciation and amortization. The net loss for second-quarter 2008 included non-cash items of $1,007,800 in non-cash stock-based compensation, $103,600 of non-cash amortization of debt discounts, and $19,200 of non-cash depreciation and amortization.

Other Highlights

Revenue Growth: The Company's strategic marketing partnership with Kiddie Kandids, which began during the fourth quarter 2008, continues to account for most of the year over year revenue growth from retail subscribers. Revenue from professional services for the B2B (business-to-business) market has become a major contributor as well to quarterly revenues:

    Revenues from:      Second-          Second-          Six          Six
                        Quarter          Quarter         Months       Months
                         2009             2008            2009         2008
                       ---------        ----------      ---------   ---------
    Subscriptions   $   183,900      $    59,100     $   390,600  $   110,400
    Professional
     services       $   192,500      $    85,100     $   296,800  $    85,100
                       --------          -------        --------      -------
    Total           $   376,400      $   144,200     $   687,400  $   195,500
                       --------         --------        --------     --------

On a sequential quarterly basis the increase of total revenue was $65,400 from $311,000 for the first-quarter 2009 to $376,400 for the second-quarter 2009. The increase was due to the Company's growth in professional service revenues of $88,200 which was partially offset by a decrease in subscription revenues of $22,800.

Cash Used in Operations: Net cash used by operating activities for the first six months of 2009 declined to $64,900 from $873,000 for the first six months of 2008. Due to continuing revenue growth and controlling operating expenses, and with material progress toward quarterly positive cash flow, the Company undertook no investing or financing activities for the second consecutive quarter.

Subscriber Base Growth: The number of recurring subscribers rose to 15,288 at June 30, 2009, a 237% increase from 4,541 at June 30, 2008. Recurring subscribers include all of DigitalPost's B2B partners including Kiddie Kandids and also subscribers from TheFamilyPost.com, which is DigitalPost's direct B2C web property. Recurring subscribers were 15,288 as of June 30, 2009, an increase from 4,541 recurring subscribers as of June 30, 2008. On a sequential quarterly basis the increase of recurring subscribers from 15,171 at March 31, 2009 to 15,288 at June 30, 2009, was less than one percent, which the Company believes is due to the seasonal aspect of the photography studio business.

Professional Services - Demand for custom interactive design services grew during the second quarter of 2009. Businesses are increasingly adopting digital media interactivity and sharing capabilities, and business services (B2B) providers are also seeking interactive media platforms to re-brand and offer business customers. During second-quarter 2009, the Company continued to work on professional services contracts won earlier this year with two new customers and a follow-up contract with an existing customer, a leading Internet search and advertising Web site.

Sawtell added: "We expect revenue growth to continue in foreseeable periods. The B2B market is proving to be a source of significant revenues and growth potential. From a financial standpoint, we see the potential for achieving positive quarterly cash flow this year, as our operating expenses remain under control at reduced levels, yet we remain flexible and able to expand our resources quickly to absorb additional business from our pipeline of potential new contracts."

About DigitalPost Interactive Inc.

DigitalPost Interactive is a SaaS (Software as a Service) and application provider that delivers B2B and B2C digital media-sharing solutions that are both easy to offer and easy to use. The company's visually-stunning, user-friendly Web 2.0 technology gives consumers a single, engaging place online for permanently storing and sharing a lifetime of digital media and memories, connecting with family and friends, and keeping organized in today's digital world.

Completely scaleable and re-brandable, DigitalPost Interactive's technology gives companies in the photo, travel, entertainment, sports, and other vertical markets a fast and efficient way to offer dynamic Web 2.0 products and services. This technology can create exciting new revenue streams for all companies looking to monetize this emerging new Internet opportunity. For more information about DigitalPost Interactive or its consumer site TheFamilyPost.com, please visit www.dglp.com.

Safe Harbor Statement

This press release contains forward-looking statements that may be subject to various risks and uncertainties. Such forward-looking statements are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and may include statements regarding our estimates, future contracts, future financial performance or results of operations, including the number of recurring subscribers, revenue growth, cost of revenues, operating expenses, interest expense, net loss and cash flow. Unless otherwise required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this press release. Additional information concerning risks and uncertainties that may cause actual results to differ materially from those projected or suggested in the forward-looking statements may be found in Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K filed with the U.S. Securities and Exchange Commission.

SOURCE DigitalPost Interactive, Inc.