Onsale Reports Record Revenue for Third Quarter 1999.MENLO PARK Menlo Park. 1 Residential city (1990 pop. 28,040), San Mateo co., W Calif.; inc. 1874. Electronic equipment and aerospace products are manufactured in the city. Menlo College and a Stanford Univ. research institute are there. 2 Uninc. , Calif.--(BUSINESS WIRE)--Oct. 21, 1999-- Onsale(R), Inc. (Nasdaq:ONSL ONSL Old North St. Louis (neighborhood just north of downtown St Louis, MO) ONSL Optical Network Simulation Layer (VPI) ONSL Organization Nationale des Syndicats Libres ), a leading Internet retailer, today announced financial results for the third quarter ended September 30, 1999. Revenue for the quarter was $93.3 million, a 15 percent increase over revenue of $81.4 million for the second quarter ended June 30, 1999, and a 61 percent increase over revenue of $57.8 million in the comparable period of 1998. Gross merchandise sales for the quarter were $97.1 million, a 12 percent increase compared to $86.9 million in the second quarter of 1999, and a 53 percent increase compared to $63.3 million in the third quarter of 1998. Net loss for the quarter was $16.2 million, or $0.82 per share on 19.6 million weighted average shares outstanding (both basic and diluted). This compares to a net loss of $11.8 million, or $0.60 per share on 19.6 million weighted average shares outstanding (both basic and diluted) in the previous quarter, and a net loss of $3.3 million, or $0.17 per share on 19.1 million weighted average shares outstanding (both basic and diluted) in the comparable period a year ago. -0-
Condensed Consolidated Statements of Operations
(in millions, except per share data)
(unaudited)
Three Months Nine Months
Ended Sept. 30, Ended Sept. 30,
1999 1998 1999 1998
---- ---- ---- ----
Total revenue $93.3 $57.8 $242.4 $148.8
Gross merchandise sales 97.1 63.3 257.3 172.1
Gross profit 3.5 6.2 12.0 16.7
Total operating expenses 19.9 10.0 46.4 30.1
Loss from operations (16.4) (3.8) (34.4) (13.4)
Net loss (16.2) (3.3) (33.6) (11.5)
Net loss per share $(0.82) $(0.17) $(1.72) $(0.61)
Weighted average
common shares used in
per share calculations
(basic and diluted) 19.6 19.1 19.6 18.9
-0- "We accomplished our three goals for the quarter: continue our sales growth, increase margins, and plan for the Egghead.com merger without losing focus on our core business," said Jerry Kaplan, Onsale's president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "With sales up 15 percent and margins increasing nearly eight-tenths of a point from last quarter, the numbers convey solid growth in what is historically a seasonally weak quarter for online retailers." Onsale continued to show strong traffic and customer base growth for the quarter. Traffic averaged 176,000 unique visitors A count of how many different people access a Web site. For example, if a user leaves and comes back to the site five times during the measurement period, that person is counted as one unique visitor, but would count as five "user sessions. per day, up from 171,000 in the previous quarter, with over 1.3 million daily page views. The number of people registered to bid and buy by the end of the quarter was 1,544,000, a 12 percent increase over the previous quarter. "For the first time this quarter, sales to existing customers exceeded sales to new customers," Kaplan observed. "Although the number of first-time buyers first-time buyer n → persona que compra su primera vivienda first-time buyer n → personne achetant une maison ou un appartement pour la première fois first-time buyer increased five percent over the previous quarter, returning customers accounted for 51 percent of sales in the quarter, compared to 41 percent in the previous quarter. "In addition, the 12-month spending for customers acquired a year ago rose 14 percent over the previous quarter, to $765 from $670. This means that existing customers are returning more frequently and spending more. This trend of increasing lifetime value for our customers can justify more aggressive customer acquisition costs in the short run, with the expectation of higher profit potential in the long run." Overall, 74 percent of orders taken went to repeat customers, and the average active customer made 2.2 purchases during the quarter. The average order size increased to $237 from $225 in the previous quarter. Inventory turns increased to 39 times for the quarter versus 36 times in the previous quarter. Annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. revenue per employee rose to $1.54 million from $1.43 million in the second quarter. Quarterly Highlights Onsale/Egghead.com Merger Agreement Onsale and Egghead.com announced a definitive merger agreement in July. Shareholder meetings to vote on the Onsale and Egghead.com merger are scheduled for November 4, 1999. Achievements and Awards During the quarter, Gomez Advisors, an Internet research This article is about using the Internet for research; for the field of research about the Internet, see Internet studies. Internet research is the practice of using the Internet, especially the World Wide Web, for research. and consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a , ranked Onsale as the number one auction site in customer confidence. The company also took top honors in the "serious shoppers" category. In addition, Onsale reached its twelve-millionth and thirteen-millionth bid milestones. Marketing/Merchandising Partnerships In July, the company announced an exclusive electronic software delivery partnership with Digital River to provide downloadable software titles at Onsale's atCost software site. The following month, Onsale and Total Peripherals teamed up to offer the Imagic Internet PC See network computer and Internet appliance. at an after-rebate price of $99. In September, Onsale launched a new online advertising campaign on AOL's network of sites, including the AOL (A division of Time Warner, Inc., New York, NY, www.aol.com) The world's largest online information service with access to the Internet, e-mail, chat rooms and a variety of databases and services. service, AOL.com, CompuServe, Netscape, and Digital Cities. Onsale also teamed up with Deja.com and AllBusiness.com to provide live auction news feeds to their web sites. About Onsale Onsale (Nasdaq:ONSL) is a leading Internet retailer providing low prices and personalized per·son·al·ize tr.v. per·son·al·ized, per·son·al·iz·ing, per·son·al·iz·es 1. To take (a general remark or characterization) in a personal manner. 2. To attribute human or personal qualities to; personify. service through automation. Onsale atCost(TM) offers computer equipment at wholesale prices directly to businesses and consumers. Onsale atAuction(TM) offers bargains on excess merchandise and services through online auctions, such as personal computers, consumer electronics, sports and fitness equipment, and vacation packages. Onsale atCost and Onsale atAuction are located on the World Wide Web at www.onsale.com. Onsale is a registered trademark and Onsale atAuction and Onsale atCost are trademarks of Onsale, Inc. All other companies and their brand names mentioned are trademarks or registered trademarks of their respective holders. This press release contains "forward-looking" statements, including projections about our business, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. For example, statements in the future tense future tense n. A verb tense expressing future time. Noun 1. future tense - a verb tense that expresses actions or states in the future future , and statements that we "expect," "plan," "estimate," "anticipate" or "believe," are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . These forward-looking statements are based on information available to us at the time of the release and we assume no obligation to update any such forward-looking statements. The statements0-Q, which are on file with the SEC and availab 1998 ---- ---- ---- ---- Revenue: Merchandise 3,514 6,171 12,025 trative 3,124 2,127 8,893 8,33 46,451 30,107 -------- -------- --------- --------- Loss from operations (16,347) (3,767) (34,426) (13,438) (640) (200) Interest and other (33,556) (11,519) Income tax benefit -- -- -- -- -------- -------- --------- --------- Net loss $(16,193)$ (3,291) $ (33,556)$ (11,519) ======== ======== ========= ========= Net loss per share: Basic and diluted ($0.82) ($0.17) ($1.72) ($0.61) ======== ======== ========= ========= Weighted average common shares: Basic and diluted 19,649 19,065 19,562 18,858 ======== ======== ========= ========= Supplemental financial data gross merchandise sales (a) $ 97,139 $ 63,284 $ 257,264 $ 172,123 ======== ======== ========= ========= (a) Represents what the company's total revenue would have been if sales where the company acted as a commissioned auction agent for its vendors were recorded as transactions where the company purchased or accepted consignment The delivery of goods to a carrier to be shipped to a designated person for sale. A Bailment of goods for sale. A consignment is an arrangement resulting from a contract in which one person, the consignor, either ships or entrusts goods to another, the of merchandise from vendors for resale at auction. This presentation of sales on a gross basis does not affect the company's gross profit or net income. Management believes that gross merchandise sales provide a more consistent comparison between historical periods and to future periods than does total revenue. Gross merchandise sales should not be considered in isolation or as a substitute for other information prepared in accordance with Generally Accepted Accounting Principles. Onsale, Inc. BALANCE SHEETS (in thousands) (unaudited) September 30, December 31, 1999 1998 ------------ ----------- ASSETS Current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. : Cash and cash equivalents $ 6,078 $ 26,008 Short term investments 20,309 20,696 Accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying , net 8,764 5,219 Merchandise inventory 11,326 10,809 Prepaid expenses Prepaid Expense An asset that arises on a balance sheet because of the payment of something in advance (prepayment). Services for the payment will be received in the near future. and other current assets Other Current Assets A balance sheet item that includes the value of non-cash assets due within one year. Notes: Examples are things like prepaid expenses and accounts receivable. 1,090 484 ------------ ----------- Total current assets 47,567 63,216 Property and equipment, net 4,974 4,024 Investment in joint venture 1,160 1,800 Other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. 403 386 ------------ ----------- Total assets $ 54,104 $ 69,426 ============ =========== LIABILITIES AND STOCKHOLDERS' EQUITY Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. Current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. : Accounts payable $ 20,436 $ 11,064 Accrued expenses Accrued Expense An accounting expense recognized in the books before it is paid for. It is a liability, usually current. These expenses are typically periodic and documented upon a company's balance sheet due to the high probability of collection. 8,033 3,996 Deferred revenue 4,076 1,836 ------------ ----------- Total current liabilities 32,545 16,896 Long-term liabilities Long-Term Liabilities Recorded on the balance sheet, a company's liabilities for leases, bond repayments and other items due in more than one year. Notes: A company's long-term liabilities are accounted for by its debt obligations to other parties which last longer than 2,039 2,016 Total stockholders' equity 19,520 50,514 ------------ ----------- Total liabilities and stockholders' equity $ 54,104 $ 69,426 ============ =========== For more information regarding ONSALE, Inc. via fax at no cost, dial 1-800-PRO-INFO, ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors ONSL. |
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