Private equity firm Apollo Global Management will take Rackspace private in the all-cash deal.
ECost.com, the mass merchant segment of PFSweb, reported web sales of $84.6 million in 2009, a 15.2% decline from the prior year. But eCost.com also turned a small profit in the fourth quarter, its first since being acquired by PFSweb in 2006.
Web sales were down in 2009 for eCost.com Inc., but the mass merchant logged a profit in the fourth quarter, its first profitable quarter since being acquired by PFSweb Inc.
For the full year ended Dec. 31, 2009, eCost.com reported:
- E-commerce revenue was $84.6 million, down by 15.2% from $99.8 million in 2008.
- Net loss was $1.19 million compared with $19.1 million in the prior year.
- Web sales were $22.8 million, a 9.2% decrease from $25.1 million in Q4 of 2008.
- Net income was $34,000, marking its first profitable quarter since being acquired by PFSweb in 2006. Net loss for Q4 2008 was $16.9 million.
In late 2009, PFSweb started up a new division within eCost.com called eStore Retail Services, designed to establish the link between PFSweb services and eCost.com, Layton says. The new division enables PFSweb Services to offer certain interactive marketing, product procurement, rich content merchandising, customer acquisition methodologies and other web retail services that eCost.com has developed, he adds.
For the full year, PFSweb reported:
- Total revenue decreased by 22%, to $352.5 million from $451.8 million in 2008.
- Net loss was $4.6 million, compared with a net loss of $15.7 million last year.