Buy.com’s Q1 revenue falls 40% from Q1 2000, gross profit is up 62%

First-quarter revenues at buy.com fell 40% to $124.6 million from $207.6 million in the same period a year ago, the company reported today. The company also reported:
--Gross profit dollars in the first quarter increased 7% to $14.4 million over the fourth quarter 2000, and 62% over the same period a year ago.
--Cumulative customer accounts increased 58% to 3.8 million versus 2.4 million in the first quarter 2000.
--Repeat orders represented 61% of orders during the quarter, down from 65% in the fourth quarter 2000.
--Gross margins, which include fulfillment expenses, increased to 11.6%, an improvement from 6.8% in the fourth quarter 2000.
--Operating expenses, excluding restructuring charges, decreased to $29.8 million, in the first quarter 2001 from $46.4 million in the fourth quarter 2000. Operating expenses in the first quarter 2000 were $40.6 million.

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"Our main focus is to achieve positive operating cash flow by the end of the year through reductions in operating expenses and gross margin improvements. This quarter we established a balance that allowed us to offer our customers a deep selection at great prices, while at the same time make solid progress towards achieving profitability," Jim Roszak, buy.com`s chief executive officer, said. "The changes we instituted during the first quarter are clearly reflected in the $10.8 million year over year reduction we recognized in our operating expenses excluding the restructuring charges."

The company reported that it shipped 715,000 orders in the first quarter, its average ticket was $162, it served 278,000 new customers, and it spent $22 to acquire a new customer vs. $36 in the fourth quarter and $32 a year ago.