GSI Commerce, Inc. expects fiscal 2007 revenues to increase approximately 23% to a range of $748 million to $750 million, compared to $609.6 million for the prior year.  Merchandise sales are expected to be approximately $1.68 billion to $1.69 billion, an increase of approximately 42% from fiscal 2006. 

Income from operations is expected to range between $5.3 million to $6.3 million, a decrease of approximately 34% to 45% from $9.6 million in FY06, and below recent guidance of $8 million to $11 million. The results missed plan due to a higher than forecast amortization of intangibles related to the acquisition of Accretive Commerce resulting from the preliminary allocation of the purchase price between goodwill and intangibles.


Adjusted EBITDA is expected to be $53 million to $54 million, an increase of approximately 38% to 40% from $38.5 million in FY06, and essentially in-line with the company’s recent guidance range of $54 million to $57 million.


On a conference call, Michael Conn, GSI's EVP, finance and CFO, said the strength in sporting goods helped margins.  “Margins within that business were quite good during the fourth quarter,” said Conn.


For the full fiscal year 2008, GSI Commerce expects net revenues to increase 33% to $1 billion. Income from operations are expected to range between $3 million and $6 million for the year, which places comparisons between a 13% gain or a 52% decline. Results will be impacted by acquisition integration expenses and amortization of acquisition-related intangibles. Adjusted EBITDA is expected to rise between 48% and 57% to between $80 million and $83 million.