EGGS:::Analyst Casey Stern, of New York's Starr Securities, predicts that EGGS has the potential to generate $ 150 million in revenues this year. "That's just a start," Stern says.
The Columbian (Vancouver, WA.)
July 9, 1998
EGGHEAD MOVING SOME DIVISIONS TO VANCOUVER
JENNIFER DIRKS and CRAIG BROWN, Columbian staff writers
Spokane-based Egghead.com is relocating several divisions to Vancouver.
The company, once known for a string of Egghead Software retail stores, has signed an agreement to lease a vacant building at 512 S.E. Chkalov Drive owned by The Al Angelo Co. The building was vacated in early 1997 by James River Corp., now Fort James Corp.
Egghead is expected to move its sales, marketing, technology and buying divisions into the 45,000-square-foot building in August. The company now has 155 people working in its Portland and Hood River, Ore., operations.
Company officials were unsure how many of those jobs will move to the Vancouver office.
Egghead officials say other Spokane divisions could be relocated to Vancouver at a later date, but that decision won't be made for another three to six months.
"Part of what's happening is that we're trying to consolidate two companies," said Egghead.com's director of corporate communications, John Hough. "We don't envision everyone in the company at this new facility, but we'll certainly have everyone in the Portland-metro area."
Egghead acquired the Portland Internet software sales company Surplus Direct one year ago. Over the course of the past year, Surplus Direct and Egghead have operated from temporary space near Portland International Airport.
Surplus Direct already operates a warehouse in Vancouver.
In the past year, Egghead has made a major conversion from brick and mortar to the Internet. At the end of its fiscal year, March 31, Egghead's Internet, catalog and 800-number sales totaled $ 30.5 million.
Egghead operates three Internet commerce sites: www.egghead.com, www.surplusdirect.com and www.surplusauction.com. Together, the sites create a virtual superstore with more than 40,000 hardware and software products.
Now only 25 percent of its products are computer software.
"Clearly, the opportunity is there to broaden the product mix," said Hough. "And taking the company into the international marketplace is another one of our corporate objectives."
Analyst Casey Stern, of New York's Starr Securities, predicted the company has the potential to generate $ 150 million in revenues this year. "That's just a start," Stern said.
The acquisition of Surplus, a 150-employee Internet and catalog retailer of close-out computer hardware, marked the beginning of a major shift for Egghead into a market it only casually entered in late 1996. The company has had a tumultuous year. It included the search for a new chief executive, closure of all 250 storefronts and the Sacramento, Calif., distribution center, and a January announcement that 750 of 1,000 employees would be let go.
Egghead got its start in Issaquah in 1984, opening its first software store in Bellevue that year. In 1995, it relocated to Seattle. Then, in 1995, Egghead moved its headquarters again -- this time to Liberty Lake, a suburb of Spokane.
About 250 employees survived Egghead's January cutbacks, with 55 remaining at the Liberty Lake headquarters.
"They have gone through substantial transitions here within the last six months, considerable downsizing and a change in corporate philosophy," said Mark Turner, president of the Spokane Area Economic Development Council. "We would be disappointed if any company decided to move from Spokane."
Egghead unloaded its Liberty Lake building in May, selling it for $ 7.5 million to the Spokane Teachers Credit Union. Egghead now leases space in the building. Egghead's stock has traded in the past 12 months as low as $ 3.81 per share and as high as $ 19.25. Today, the stock was priced at $ 16.12.
-- Columbian staffer Shareefah Abdullah contributed to this report. |
