Quarterly numbers are down, but eCost.com likes the future
Slowly and surely eCost.com continues to improve its financial position, though the online retailer of personal computers and related gear still lost money in the second quarter and revenue dropped by 5.9%.
In Q2 eCost, a unit of PFSweb Inc. and No. 111 in the Internet Retailer Top 500 Guide, posted a net loss of $600,000 on revenue of $27.1 million. In Q2 of the previous year, eCost posted revenue of $28.8 million, but PFSweb didn’t break out a figure for net income or loss.
For the six months ended June 30, 2007, eCost .com revenue was $48.7 million, compared to $50.6 million for the same period in 2006. Adjusted EBITDA for eCost.com for January through June was a loss of $1.5 million, compared to a loss of $4.9 million for the same period last year.
“The eCost.com business continues to show substantial improvements,” says PFSweb CEO Mark Layton. “Revenue for eCost.com has increased sequentially in each of the last three quarters. Also, gross profit margins have improved strongly year-over-year, while costs have trended down. This has led to a sharp reduction in eCost.com`s losses versus the second quarter of 2006."
To improve performance, eCost.com has implemented several site upgrades and added new lines of merchandise. The site launched a new home and outdoor products category, upgraded product detail pages and added multiple product images. A new related accessories tab was added to the product detail page and a new shopping cart jump page now offers related products and other features. “With these and many other improvements under way, we believe we are well-positioned for continued growth in the eCost.com business,” says Layton.
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