CafePress (PRSS) Divests Art Business; Warns for Q4

CafePress (NASDAQ: PRSS) reached a definitive agreement to divest its Art business. The divesture is a component of the Company’s strategy to streamline operations, optimize its product offerings and focus on growing its core business, CafePress.com.

Under terms of the agreement, CafePress would sell its Art business to privately held Circle Graphics, Inc., for approximately $31.5 million in cash. Although no assurances as to timing can be made, the transaction is expected to close during the first quarter of 2015, and is subject to certain adjustments and closing conditions. The Art business represented approximately 20 percent of CafePress’s total revenues in 2014.

CafePress also announced preliminary, unaudited fourth quarter revenue results. For the fourth quarter of 2014 CafePress expects to report revenues in the range of $82 - $84 million and expects its earnings per share to be substantially below analyst consensus estimates. (consensus is $87.4 million and $0.16).

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