3PF’s revenues fall 47% in Q2
Revenues at third-party fulfillment company 3PF, a subsidiary of Portland, OR-based Rentrak Corp., fell 47% in the company’s second quarter to $2.5 million, Rentrak reports.
"Rentrak formed 3PF as a separate subsidiary in 1999 primarily to provide third-party e-fulfillment services to the burgeoning Internet retail market,” said Paul A. Rosenbaum, Rentrak`s chairman and CEO. “However, with the slowdown in Internet retailing and the general economic downturn, we now have significant over-capacity at 3PF. We are in the process of optimizing our warehouse capacity and reducing expenses to reflect the current business volume. Rentrak will pursue all available options to improve the financial performance of this subsidiary."
Rentrak’s primary business is processing video sales and rental information and shipping videocassettes to retailers. In that business, Rentrak had revenue of $23.7 million in Q2, down from $24.9 million a year ago. The company earned $398,000 in Q2 vs. a loss of $9.6 million a year ago.
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