Q3 revenue rises 6% at PFSweb, but falls 12% at merger partner eCost

Revenue at PFSweb Inc., a provider of fulfillment services to online retailers, rose 6% to $81.5 million for the third quarter ended Sept. 30, while Q3 revenue at merger partner eCost.com fell 12% to $38.2 million, the companies said.

At PFSweb, Q3 service fee revenue rose 28% to $14.9 million from $11.6 million in 2004. Product revenue totaled $62.3 million, compared with $61.6 million a year earlier.

PFSweb posted a net loss of $453,000 in the third quarter, compared with net income of $420,000 in 2004’s third quarter.

At eCost.com, Q3 net sales of $38.2 million, down 7% from $41 million in the second quarter. Net losses for the quarter totaled $2.3 million, compared with a net loss of $892,000 a year earlier.

During the quarter, eCost.com added 57,000 new customers, expanding its customer base to more than 1.3 million. That’s a 42% increase from 949,056 customers in the third quarter of 2004.

PFSweb and eCost.com this week signed a letter of intent to merge under a plan that calls for eCost.com to operate as a subsidiary of PFSweb.