Merchandise sales through GSI Commerce Inc.’s e-commerce platform rose 84% to $233 million in the third quarter ended Sept. 30 from $126.6 million a year earlier, the company reported today.
GSI provides outsourced e-commerce services, including operating web site, marketing and fulfillment for more than 60 clients, including retailers, branded manufacturers, entertainment companies and professional sports organizations.
Q3 net revenues totaled $118.5 million, up 40% from $84.9 million in 2005’s third quarter. The company reported a net loss of $6.2 million, compared with a $4.5 million net loss a year earlier.
Included in the net loss is a non-cash charge of about $700,000 to reduce the carrying value of the shares owned by the company in online jewelry retailer Odimo Inc. The company also incurred cash and non-cash charges of $700,000 related to the retirement of its former president and chief operating officer.
GSI also reported that gross margin in the quarter was 48.7%, an 840-basis-points increase from 40.3% for the same period last year.
“We had a successful third quarter highlighted by strong revenue growth and a smaller-than-planned net loss,” says Michael G. Rubin, chairman and CEO. “In addition, with nine new partner deals signed so far in fiscal 2006 and four partner renewals signed during the fiscal third quarter, we feel good about our new business activity and our visibility into continued strong growth.”
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