August 6, 2010, 12:37 PM

Geeknet replaces its CEO as Q2 sales rise

Executive chairman Ken Langone will serve as interim CEO.

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Geeknet Inc., which owns and operates online gadget retailer ThinkGeek.com, posted higher second quarter e-commerce sales and announced a change in top management.

In its second quarter earnings release, Geeknet, No. 232 in the Internet Retailer Top 500 Guide, announced that CEO Scott Kauffman has stepped down to pursue personal interests and will be replaced on an interim basis by executive chairman and board member Ken Langone.

In a new filing with the U.S. Securities and Exchange Commission, Geeknet says it will pay Kauffman, who earned total compensation of $672,588 in 2009, including a base salary of $398,462 and bonus of $274,126, a severance package worth $701,250. Kauffmann joined Geeknet as CEO in January 2009 after serving as CEO of PopTok Ltd., a media software company.

Langone, who founded The Home Depot Inc., No. 39 in the Internet Retailer Top 500 Guide, is also founder, CEO and chairman of Invemed Associates LLC, an investment banking and brokerage firm. “Scott will serve as an advisor to me through a transition period yet to be determined," says Langone.

In addition to a change in senior leadership, Geeknet also reported:

 • E-commerce sales for the second quarter ended June 30 increased 43.2% to $10.6 million from $7.4 million.

• Total sales for the second quarter ended June 30 increased 29.9% to $15.30 million from $11.78 million.

• Net loss for the second quarter was $2.5 million compared with $3.58 million in the second quarter of 2009.

“Both our e-commerce and media business grew in the second quarter, resulting in a 30% combined top-line increase," says Langone. "ThinkGeek continued its success, driving strong results across the board. Our media business is gaining traction with modest year-over-year growth as we continue to improve the underlying metrics and expand our premium advertising."

Internet Retailer calculates the web accounted for 69.3% in the second quarter.

For the first two quarters, Geeknet also reported:

  • E-commerce sales for the first two quarters rose year over year 49.1% to $20.92 million from $14.03 million.

• Total sales for the first two quarters rose year over year 35.3% to $29.98 million from $22.15 million.

• Net loss for the first two quarters was $5.32 million, down from $11.01 million in the prior year.

Internet Retailer calculates the web accounted for 69.8% of sales in the first two quarters.

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