In its second-largest acquisition, Amazon buys the company for $970 million.
The web retailer of gadgets, gifts and all things geeky posts an $8.4 million profit.
Third quarter sales increased for Geeknet Inc. as the company began adapting to a retail focus following the September sale of its online media sites to Dice Holdings Inc. for $20 million.
For the third quarter ended Sept. 30, Geeknet, which owns and operates the online computer accessories, gadgets and apparel web store ThinkGeek.com, No. 175 in the Internet Retailer Top 500, reported:
- Sales of $17.3 million, a 17.7% increase from $14.7 million in the third quarter of 2011.
- A profit of $8.4 million, a reversal from a $2.7 million loss last year.
The media sites sale bolstered this profit result, Geeknet says. “With the sale of our online media business, this quarter marks a new beginning for Geeknet,” says Ken Langone, CEO and executive chairman. “Our primary focus is now on ThinkGeek and we plan to aggressively drive growth and deliver profitable returns.”
For the first three quarters of 2012, Geeknet reported:
- Sales increased year over year 19.0% to $52.6 million from $44.2 million.
- A profit of $7.9 million compared with a $7.2 million loss last year.