GSI Commerce Inc. reported revenues in its third quarter jumped 49.3% to $284.1 million from $190.3 million. The net loss widened to $18.6 million, or 28 cents per share, from $9.4 million, or 18 cents, a year ago.

The loss from operations was $20.2 million compared to $9.9 million. Non-GAAP income from operations was $13.3 million compared to $12.1 million. Trailing 12-month cash flow from operating activities was $111.9 million compared to $90.1 million. Trailing 12-month free cash flow was $43.8 million compared to $49.3 million.

“GSI delivered solid growth in net revenues and non-GAAP income from operations in the third quarter and has generated strong results for the first nine months of 2010. Important progress on strategic initiatives made during the quarter included the continued enhancements to our e-commerce technology and payments platform, the launching of several international e-commerce stores for key clients, the continued build out of management teams for marketing services and Rue La La, the addition of new categories, mobile and local at Rue La La and the integration of the four acquisitions that we completed in the second quarter. In addition, after twelve months of development and start-up effort, we soft launched ShopRunner in early October,” said Michael G. Rubin, chairman and CEO of GSI.

Fiscal 2010 Fourth Quarter and Full Year Guidance

The company provided the following guidance for fiscal 2010 fourth quarter:

















































     
4Q 2010
   
FY2010
Net Revenues     $529 million     $1.35 billion
Income (Loss) from Operations     $54.5 – $56.5 million     ($1.3) – $0.7 million
Non-GAAP Income from Operations     $90.5 – $92.5 million     $133 – $135 million
Capital Expenditures     $10.4 -$15.4 million     $65 – $70 million

   
   

Reconciliation of Guidance from GAAP to Non-GAAP:



































































     
4Q 2010
   
FY 2010
Income (Loss) from Operations     $54.5 – $56.5 million     ($1.3) – $0.7 million
Depreciation     $17.6 million     $64.1 million
Amortization     $5.4 million     $20.2 million
Changes in Fair Value of Deferred Acquisition Payments     $2.1 million     $8.3 million
Stock-based Compensation     $7.8 million     $29.0 million
Acquisition-related Expenses(a)     $3.1 million     $12.7 million
Non-GAAP Income (Loss) from Operations     $90.5 – $92.5 million     $133 – $135 million






(a)Acquisition-related expenses include transaction, due diligence and integration expenses, non-cash inventory valuation adjustments, and the cash portion of any acquisition earn-out payments recorded as compensation expense.