Private investment firm Comvest Partners acquires the financially troubled e-retailer, which filed for Chapter 11 bankruptcy protection in March.
The provider of e-commerce technology and services posted Q2 net revenue of $264.2 million.
GSI Commerce Inc., a provider of e-commerce and online marketing technology and services to more than 200 retailers, said net revenue rose 41% to $264.2 million for the second quarter ended July 3, up from $187.2 million from the same period a year ago. The company’s net loss widened by 96% to $25.7 million from $13.1 million.
For the first six months, net revenue rose 40% year over year to $536.8 million from $383.7 million, as net loss widened by 34% to $33.9 million from $25.2 million.
Michael Rubin, chairman and CEO, attributes much of the revenue growth to a 19% rise in comparable-store sales in its e-commerce segment and a 55% hike in marketing services revenue. He adds that sales nearly doubled at GSI’s Rue La La members-only, limited-time sales e-commerce site. Comparable-store sales relate to sales at e-commerce operations on GSI’s books for at least a year.
GSI also reported for the second quarter:
● $146.2 million in net revenue from product sales, up 60% from $91.2 million a year ago.
● $118.1 million in service revenue, up 23% from $96.0 million a year ago.
● $286.8 million in costs and expenses, up 44% from a year ago.
● An operating loss that widened by 84% to $22.6 million from $12.3 million a year ago.
● Non-GAAP operating income of $11.8 million, up 27% from $9.3 million a year ago. Non-GAAP figures don’t include costs related to such items as depreciation, amortized acquisition expenses and stock-based compensation expenses.
For the first half, GSI also reported:
● $305.4 million in net revenue from product sales, up 55% from $197.4 million a year ago.
● $231.4 million in services revenue, up 24% from $186.3 million a year ago.
● $572.4 million in costs and expenses, up 39% from $410.5 a year ago.
For the third quarter, GSI is projecting net revenue of $280 million and a loss from operations of $25.8 million. For the full 2010 fiscal year, GSI is projecting net revenue of $1.3 billion and a loss from operations of $900,000.