Net sales at Drugstore.com for the second quarter grew 40% over the year-ago period, to $47.6 million from $34 million, the company reported today.
President and CEO Kal Raman attributed the growth to improved customer service and said the company is on track to produce earnings next year. He clarified his earnings projection by saying drugstore.com will "become EBITDA positive," meaning it will produce earnings before factoring in the costs of interest, taxes, depreciation and amortization.
Nonetheless, the company is still showing steep though narrowing losses. It reported a second-quarter net loss based on generally accepted accounting principles of $14 million, showing a marked improvement from the year-earlier net loss of $32.1 million.
It reported an EBITDA loss of $8.5 million, compared to a loss of $14.7 million a year ago, excluding special charges and a cumulative effect adjustment.
The charges included $2.5 million related to the write-off of prepaid cable television advertising rights, which the company said it has decided not to use. It also recorded an $8.9 million non-cash cumulative effect adjustment that was related to goodwill recorded in connection with drugstore.com`s acquisition of Beauty.com in 2000.
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