In its second-largest acquisition, Amazon buys the company for $970 million.
Sales at e-commerce platform and services vendor GSI Commerce increased 38% to $609.6 million in 2006 from $440.4 million the previous year. Net income increased year-over-year to $53.7 million from $2.7 million.
Sales at e-commerce platform and services provider GSI Commerce Inc. increased 38% to $609.6 million in 2006 from $440.4 million the previous year. Net income increased year-over-year to $53.7 million from $2.7 million.
Q4 2006 sales increased 49% to $257.2 million from $172.3 million during the same period in 2005. Net income jumped to $67.9 million from $11.7 million in Q4 2005. Fourth quarter 2006 included a favorable non-cash income tax benefit of $44.4 million.
“2006 was highlighted by record financial results, nine new multiyear partner agreements and the extension of five partner relationships,” says Michael G. Rubin, chairman and CEO of GSI Commerce. “Continuing investment in our platform fueled our growth as we delivered new functions, features, facilities and services to our partners.”
Rubin is confident the company will continue to grow sales this year. “We plan to invest an estimated $12 million in discretionary fixed operating expenses in 2007,” he says, “to enhance our global capabilities, strengthen our technology infrastructure, nearly double the investment in our technology product roadmap, automate our newest fulfillment center, increase our sales and marketing organization, and expand our management team.”