GSI Commerce reported fourth-quarter revenues grew 16.8% to $391.4 million from $335.1 million. Net revenues from product sales grew 9.8% to $244.8 million from $223 million while service fee revenues jumped 32% to $146.6 million from $112 million.

Earnings rose to $24.4 million, or 45 cents a share, from $16.5 million, or 30 cents, a year ago. The most recent period included a $1.7 million charge for the impairment of equity investments. The year-ago period included a loss on the sale of marketable securities of $5 million.

For the full year, net revenues increased 29% to $966.9 million from $750.0 million. Non-GAAP net revenues increased 49% to $491.4 million from $328.8 million. The loss from from operations was $9.0 million compared to income from operations of $4.9 million.

In the year, non-GAAP income from operations was $81.9 million compared to $52.3 million. The net loss was $16.9 million or 36 cents per share compared to net income of $3.0 million,  or 6 cents, a year ago.

GSI noted that cash flow from operating activities was $96.0 million compared to $58.1 million. Free cash flow was $38.8 million compared to $3.9 million.

“I am proud of the strong results we delivered in 2008, including net revenue growth of 29%, non-GAAP income from operations growth of 57% to $81.9 million and record free cash flow of $38.8 million,” said Michael G. Rubin, chairman, president and CEO of GSI. “Our performance reflects secular growth in e-commerce and interactive marketing, our proven business model and excellent execution. While the operating environment in 2009 will remain challenging, we believe we are positioned to continue delivering strong results.”

Fiscal 2009 First Quarter Guidance

The company provides the following guidance for fiscal 2009 first quarter:


  • Net revenues are expected to be in a range of $187.0 million to $192.0 million.
  • Loss from operations is expected to be in a range of $20.0 million to $21.0 million.
  • Non-GAAP income from operations is expected to be in a range of $2.0 million to $3.0 million.