Cimpress N.V., a global online custom printer for businesses and consumers, reported revenue gains in most of its operating units in the third quarter, leading to a 26.1% increase in total online sales to $550.6 million.

Charges, including $24.8 million attributed to its restructuring, led to an operating loss of $41.9 million.

The company, which until a 2014 rebranding operated as Vistaprint, is decentralizing its structure to “improve accountability for customer satisfaction and capital returns to simplify decision-making and to improve the speed of execution,” Robert Keane, president and CEO, said in January.

The restructuring includes building out its mass customization platform, which began in 2014. The platform combines in-house software and production technology the company uses to “mass-customize” personalized products, such as business cards, in small quantities at low prices. Cimpress says its platform features automated graphic processing steps that reduce per-order set-up costs and self-service, browser-based design tools for customers. Eventually all transactions will occur on the platform, Cimpress says.

Other factors contributing to the Q3 operating loss include a $6.8 million operating loss in Cimpress’s newly acquired National Pen business and $5 million of profit decline resulting from termination of two customer contracts. Cimpress did not name the partners.

“As previously announced, we also deeply decentralized our operations over the past quarter,” Keane said yesterday. “We believe this will improve accountability for customer satisfaction and capital returns, simplify decision-making, improve the speed of execution, further develop our cadre of general managers, and preserve and release entrepreneurial energy.”

For the third quarter of fiscal 2017 ended March. 31, Cimpress reported:

• Total online sales of $550.6 million, up 26.1% from $436.8 million in Q3 2016;
• Vistaprint sales of $321.3 million, up 10.8% from $289.9 million, and represent 58.4% of total online sales for the quarter;
• Upload and Print unit sales of $142.5 million, up 22.4% from $116.4 million;
• All Other Business sales of $28.0 million, down 8.5% from $30.6 million;
• National Pen business unit sales of $58.8 million. Cimpress acquired National Pen for $202.6 million in December;
• An operating loss of $41.9 million, compared with an operating loss of $17.5 million;
• A net loss of $42.7 million, compared with a net loss of $33.8 million.

The All Other Business unit includes the Netherlands-based Albumprinter and Norway-based FotoKnudsen, which sell photo albums to consumers; Most of World business units in Japan, India, Brazil and China; and Corporate Solutions business unit, which focuses on selling through other merchants.

For the first nine months of fiscal 2017, Cimpress reported:

• Total online sales of $1.57 billion, up 19.8% from $1.31 billion in the first nine months of Q3 2016.
• Vistaprint sales of $986.1 million, up 8.1% from $912.2 million.
• Upload and Print unit sales of $426.8 million, up 49.1% from $286.2 million.
• All Other Business sales of $99.4 million, down 10.0% from $110.5 million.
• Operating loss of $36.0 million, compared with operating income of $62.2 million.
• Net loss of $37.7 million compared with net income of $33.2 million in the same period last year.

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