What the CYSP management has said -
CyberShop®International, Inc. (Nasdaq: CYSP - news), a leading online
retailer, today announced that revenues for the first quarter ended
March 31, 1999 were $1,075,000, representing a 145% increase over
revenues of $439,000 reported in the first quarter of 1998.
''We are pleased to have grown revenues almost two and half times in
the first quarter, exceeding consensus analyst expectations by 25%
and surpassing consensus expected EPS estimates by $.02,'' said Jeff
Tauber, CEO and founder. ''While continuing to rapidly grow our
revenues, we also undertook some significant marketing initiatives
and infrastructure modifications to support our new merchandising strategy.''
What the CYSP management did not tell us -
Sequential revenue growth (qtr to qtr) is -ve
Rev
Q4 1997 - 848
Q1 1998 - 422
Q2 1998 - 524
Q3 1998 - 454
Q4 1998 - 3414 (includes Furby sales)
Q1 1999 - 1075
I thought internet companies are supposed to be showing explosive
revenue growth. After several quarters of existence, CYSP has managed
to generate revenues of a measly million dollars/qtr.
Over the last few quarters, the management has shown they have no clue
about what business they are in. They don't seem to have any idea on
what business model they are using.
Some examples -
- changing product categories
- relaunching websites
- dropping websites (egift)
- moving to an inventory-based model.
- staring the millionth auction site.
IMO, CYSP will never make any money. Over the next few years several
hundred internet businesses will fail. IMHO, CYSP will be one of them.
Regards.
Rajiv |
