Top 40 distributor Cimpress (asi/162149), owner of Vistaprint and National Pen, announced that sales in its fiscal first quarter 2018, ended September 30, were $563.3 million, a year-over-year increase of 27%. Excluding the effects of currency exchange rate fluctuations and revenue from businesses acquired, sales increased 12% from the same quarter last year.

While Cimpress, based in the Netherlands, reported a Q1 2017 GAAP loss from operations of $27.8 million, which it attributed to charges related to recent acquisitions and other factors, GAAP income from operations in fiscal Q1 2018 was $46.6 million, or 8.3% of revenue. The company credited the sale of Albumprinter in late August for $93.1 million, lower charges related to acquisition activity and restructuring savings with the gain.

“We are off to a solid start for fiscal year 2018,” said Robert Keane, president and CEO of Cimpress, in a statement. “Our businesses delivered strong results in terms of the value they are creating for their customers, and our financial results are on track relative to our internal objectives for fiscal year 2018 growth in revenue and unlevered free cash flow.”

Keane went on to announce that, after implementing a new decentralized operating structure in January, which included a transfer of 3,000 team members to the Vistaprint business, the company will now undertake a reorganization of that division that will reduce headcount and other costs over the next two months. The company expects that related savings will cut fiscal year 2018 operating expenses by between $20 million and $22 million.

“Following more than six months of experience with their newly integrated organization, the Vistaprint leadership team has taken the difficult but appropriate decision to reorganize the business,” said Keane. “These changes will…simplify and streamline operation and more closely align functions to increase the speed of execution.”

While the company does not break out revenue of promotional products, it reported that its National Pen business earned $59.7 million in global sales in the fiscal first quarter, a 10.8% increase from the previous quarter sales of $53.9 million.

“As we look ahead to the remainder of fiscal year 2018, we are on track to recognize the financial benefits of the decentralization announced last January in line with our past commentary,” said CFO Sean Quinn. “We now also expect to recognize net savings and organizational benefits from the Vistaprint restructuring announced today.”

Cimpress ranks eighth on Counselor’s list of the largest distributors in the industry, with an estimated $225 million in 2016 North American promotional products sales.