September 20, 2004, 12:00 AM

Drugstore.com lowers its expectations slightly for the third quarter

Drugstore.com reported today that it expects Q3 revenue to increase by 40% from Q3 last year to $83 million to $85 million. It had been expecting $85 million to $88 million. It also said it expects GAAP net loss of $5.4 million to $6.4 million.

Drugstore.com Inc. reported today that it expects third-quarter revenue to increase by 40% from Q3 last year to $83 million to $85 million. It also said it expects GAAP net loss of $5.4 million to $6.4 million. The projections were slightly below previous expectations of $85 million to $88 million and a GAAP net loss $4.5 million to $5.4 million.

"We expect third quarter results to reflect normal seasonality, as well as a sequential decrease in our vision business," said Bob Barton, acting CEO and current CFO. "The sales from our Vision Direct acquisition continue to be lower than anticipated, primarily as a result of short-term site conversion and program transition challenges that occurred in connection with the web site integration process. We have been working aggressively to address these challenges and are beginning to see a positive impact from our efforts. "

Outside of the vision business, the company says it expects solid year-over-year growth in other business segments, led by growth in over-the-counter and mail-order pharmacy sales. "Although we are disappointed with our current third quarter outlook, we are optimistic regarding our business and future prospects," Barton said. "We are also pleased with the progress we are making in regards to the search for our new CEO."

Former CEO Kal Raman resigned in June and recently joined Amazon.com Inc.

Drugstore, No. 36 in Internet Retailer’sTop 300 Guide to online retailers, expects to report final Q3 numbers the week of Oct. 25.

 

 

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