GSI Commerce, Inc. said revenues for the second quarter ended July 4, slipped 3.2% to $187.2 million versus $193.2 million in the year-ago period. The net loss was $13.1 million, or 27 cents a share, versus a loss of $20.3 million, or 43 cents, a year ago.
Loss from operations was $12.3 million as compared to a loss from operations of $17.4 million in the year-ago period.
Non-GAAP revenues increased to $109.1 million from $102.9 million a year ago. Non-GAAP income from operations was $9.3 million compared to $6.7 million a year ago.
“We produced excellent results in the second quarter and have delivered a strong first half of 2009,” said Michael G. Rubin, chairman, president and CEO of GSI. “Net revenues and non-GAAP net revenues topped our expectations in the second quarter with revenues in both our e-commerce services and marketing services segments exceeding our plans. Loss from operations and non-GAAP income from operations for the second quarter also exceeded our expectations and operating and non-GAAP operating margins both expanded meaningfully from last year. As we continue to focus on driving improved return on capital, we are particularly pleased with our strong year-over-year growth in trailing 12 month cash flow from operations and free cash flow.
Regarding outlook, net revenues are expected to be in the range of $181.0 million and $186.0 million, while loss from operations is expected to be between $15.5 million and $17.5 million. Non-GAAP income from operations is expected to be in the range of $4.0 million to $6.0 million.
GSI COMMERCE, INC. AND SUBSIDIARIES |
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| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||
| (In thousands, except per share data) | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||
| June 28, | July 4, | June 28, | July 4, | |||||||||||||||
| 2008 (1)(2) | 2009 | 2008 (1)(2) | 2009 | |||||||||||||||
| Revenues: | ||||||||||||||||||
| Net revenues from product sales | $ | 107,055 | $ | 91,192 | $ | 230,175 | $ | 197,383 | ||||||||||
| Service fee revenues | 86,154 | 95,989 | 158,577 | 186,273 | ||||||||||||||
| Net revenues | 193,209 | 187,181 | 388,752 | 383,656 | ||||||||||||||
| Costs and expenses: | ||||||||||||||||||
| Cost of revenues from product sales | 78,444 | 70,442 | 163,861 | 149,797 | ||||||||||||||
| Marketing | 11,853 | 7,054 | 28,729 | 17,915 | ||||||||||||||
|
Account management and operations, inclusive of $1,364, $2,394, $2,831 and $4,650 of stock-based compensation |
57,550 | 59,055 | 116,993 | 116,796 | ||||||||||||||
|
Product development, inclusive of $687, $1,185, $1,297 and $2,636 of stock-based compensation |
25,214 | 28,101 | 47,835 | 56,475 | ||||||||||||||
|
General and administrative, inclusive of $2,273, $2,513, $4,864 and $5,760 of stock-based compensation |
18,694 | 19,527 | 34,948 | 38,804 | ||||||||||||||
| Depreciation and amortization | 18,826 | 15,279 | 32,635 | 30,680 | ||||||||||||||
| Total costs and expenses | 210,581 | 199,458 | 425,001 | 410,467 | ||||||||||||||
| Loss from operations | (17,372 | ) | (12,277 | ) | (36,249 | ) | (26,811 | ) | ||||||||||
| Other (income) expense: | ||||||||||||||||||
| Interest expense | 4,539 | 4,759 | 8,909 | 9,555 | ||||||||||||||
| Interest income | (168 | ) | (54 | ) | (1,207 | ) | (205 | ) | ||||||||||
| Other (income) expense | 208 | (394 | ) | 353 | (165 | ) | ||||||||||||
