Q3 revenue at PFSWeb’s eCost.com rises 62% to $27 million
Revenue at e-retailer eCost.com rose 62% to $27 million for the third quarter ended Sept. 30, up from $16.7 million a year ago. That helped to increase total Q3 revenue 18.8% at parent PFSWeb Inc., a provider of outsourced fulfillment services, to $112 million, the company says.
The revenue increases resulted in total PFSWeb Q3 net income of $162,000, compared to a year-ago net loss of $3.3 million. “This is the second consecutive quarter of consolidated profit since completing eCost.com’s integration,” says Mark Layton, chairman and CEO of PFSWeb. “Going into the peak holiday season, which we expect will be eCost.com’s strongest quarter moving forward, we are confident in our ability to deliver another strong financial performance.”
PFSWeb closed on its acquisition of eCost.com, a retailer of computers, consumer electronics and home furnishings, on Feb. 1, 2006. ECost.com is No. 111 in the Internet Retailer Top 500 Guide.
For the nine months ended Sept. 30, revenue at eCost.com rose nearly 13% year-over-year to $75.7 million from $67.2 million. (The comparable period of 2006 included only the eight-month period from the Feb. 1 acquisition through Sept. 30.)
“We are pleased with eCost.com’s performance now that we have improved and streamlined its operations,” Layton says. “These advancements have led to significant improvements in gross margins and adjusted EBITDA results for the quarter and nine-month results.” For the third quarter, eCost.com posted an adjusted EBITDA loss of $400,000, compared to a year-ago loss of $3.2 million. For the nine-month period, it posted an adjusted EBITDA loss of $1.9 million, compared to loss of $8.1 million a year earlier. EBITDA stands for earnings before interest, taxes, depreciation and amortization.
PFSWeb reported total revenue for the nine months of $324.8 million, up 3.3% from $314.3 million a year earlier, and a total net loss of $2 million, compared to the year-earlier net loss of $8.1 million. PFSWeb’s customers include Hewlett-Packard Co., Roots Canada Ltd., IBM Corp. and LEGO.
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