CEO Roland Smith will retire and Troy Rice will oversee e-commerce as Office Depot’s new chief operating officer.
Net revenue in the first half at BabyUniverse slipped 11% to $16 million from $18 million a year earlier, the company reported today. Net loss in the first half more than doubled to $3.7 million from $1.4 million.
Net revenue in the first half at BabyUniverse Inc., an online retailer and provider of content geared toward parents and expectant parents, slipped 11% to $16 million from $18 million a year earlier, the company reported today. Net loss in the first half more than doubled to $3.7 million from $1.4 million.
In the second quarter, net sales declined 15% to $7.4 million from $8.5 million in Q2 a year earlier. Net loss was up 63% to $1.9 million from $1.2 million.
BabyUniverse says it has been focusing on its merger with eToys Direct. The company noted: “While sales for the quarter were reflective of the seasonality experienced in the prior year, operating expenses continued a downward trend from the fourth quarter of 2006, improving from $3.9 million in the first quarter of 2007 to $3.6 million in the second quarter of 2007, reflecting our continued focus on stabilizing operations in preparation for a smooth transition upon completion of the merger with eToys Direct.”
John Textor, chairman and CEO, added: "It is important to note that the proposed merger with eToys Direct will be accounted for as a purchase transaction, with eToys Direct treated for accounting purposes as the acquirer of BabyUniverse. Once the merger is consummated, the historical financial results as periodically reported for the combined company, for all periods prior to the closing date, will be those of eToys Direct only. All historical results of BabyUniverse, for this second quarter and all periods prior to the closing date, will be excluded from the combined company`s future quarterly and annual financial statements. As such, efforts to improve short- term financial reporting results have been de-emphasized in favor of our primary goal of improving shareholder value through the preparation of our company for consolidation and integration into the surviving organization to be managed by the existing team at eToys Direct."
Textor also noted that in the second quarter, BabyUniverse, No. 207 in the Internet Retailer Top 500 Guide, produced and aired its first original content for BabyTV.com and re-launched ePregnancy.com. "While many of the company`s operating initiatives remain on hold until our expected completion of the merger, we are encouraged by the stabilization of operating losses and a number of other positive trends," Textor says.