GSI Commerce Inc. reported net revenues rose 38.7% to $272.6 million in the first quarter ended April 3, 2010. Losses from operations declined 11.0% to $12.9 million during the quarter compared to the same period a year earlier.


Net loss for the period total $8.1 million, or 13 cents per share, compared to $12.1 million, or 25 cents per share in the first quarter of 2009. The online retailer threw off $76.2 million in free cash flow, up 4.5 times from a year earlier.


The company said its trailing 12-month income from operations was $11.9 million compared to a $5.9 million in the year earlier. On a non-GAAP basis – or after excluding stock-based compensation, depreciation and amortization expenses and other one-time expenses – the figures were $17.4 million and $9.3 million.


The year got off to a strong start for GSI with better than expected top and bottom line results in the first quarter,  said Michael G. Rubin, chairman and CEO of GSI. The key drivers to the upside were strong comparable store e-commerce trends and continued momentum in marketing services. In addition, Rue La La performed strongly in the quarter and we are pleased with the integration of its call center and fulfillment operations into GSIs infrastructure. While we are pleased with the financial results, we are just as excited about the meaningful strategic developments in our business since the beginning of the year.

 

“This includes the hiring of a CEO for Marketing Services and a new chief of e-commerce technology, several client renewals and expansion of services, multiple new client additions, as well as an acquisition in the mobile marketing space and a minority investment in a European e-commerce technology company. In addition, we made significant strides in our international business, including the signing of one of our top 5 service fee clients to an extended global e-commerce agreement   

Fiscal 2010 Second Quarter and Year Guidance
The company provided the following guidance for fiscal 2010 second quarter:


 


  • Net revenues are expected to be $260 million.  
  • Loss from operations is expected to be $20.9 million. 
  • Non-GAAP income from operations is expected to be $10.0 million

The company provides the following guidance for fiscal year 2010:


 


  • Net Revenues are expected to be $1.3 billion. 
  • Income from operations is expected to be $15.6 million. 
  • Non-GAAP income from operations is expected to be $135.0 million.
  • Capital expenditures are expected to be approximately $60.0 million, excluding $1.5 million of integration capital for Rue La La.