PFSweb’s Q2 revenue grows 6%
Second-quarter net revenue for PFSweb Inc., a provider of outsourced fulfillment, call center, logistics and other e-commerce services, grew 6% to $84.9 million from $80 million in Q2 a year ago, the company reports. PFSweb’s net loss for the second quarter, $546,000, compared to net income of $479,000 a year earlier. The company says that results for the 2005 second quarter include costs of $200,000 related to the relocation of two distribution facilities to the new Airways Distribution Center in Southaven, MS.
The company reports that service fee revenue grew 47% to a $16.3 million in the second quarter from $11 million a year earlier. Product revenue in the second quarter was $63.4 million versus $65.3 million in the same period a year ago.
“Our June quarter results reflect strong growth in service fee revenue for the second consecutive quarter as we continued the rollout of new business signed last year,” said Mark Layton, CEO. “Our strategy to enhance service fees through large contracts with Fortune 500 and Global 1000 companies led to 47% growth in service fee revenue during this past quarter. With the initial implementation of our new contracts now complete, we will focus on increasing productivity and reducing operating expenses from this business to drive greater gross profit results.”
For the first six months, net revenues totaled $166.7 million compared to $157.5 million in the first six months of 2004. Service fee revenue increased 67% to $30.4 million compared to $18.2 million and product revenue was $127.1 million versus $133.9 million for the six months a year earlier. Net loss for the six months was $760,000, compared to a net loss of $1.3 million in the corresponding period in 2004.
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