Look at these numbers and they are proud LOL:
January 25, 1999 07:15
uBid Inc. Online Auction House Announces 1998 Fourth Quarter and Annual
Financial Results; Results Include 91 Percent Increase in Registered Users, 58
Percent Rise in Revenues
Jump to first matched term
ELK GROVE VILLAGE, Ill.--(BUSINESS WIRE)--Jan. 25, 1999--uBid Inc. (Nasdaq:UBID), a leading online auction house, Monday
reported financial results for the fourth quarter and year ended Dec. 31, 1998.
uBid, a subsidiary of Creative Computers Inc. (Nasdaq:MALL) went public on Dec. 4, 1998, and announced record revenues
and registered users in its first reported financial results since its initial public offering.
Revenues for the fourth quarter of 1998 were $24.1 million, an increase of 58% over the third quarter of 1998. Revenues for
the year ended Dec. 31, 1998, were $48.2 million. Revenues for 1997, the year of the company's first sale, were $9,000, so
percentage comparisons are not meaningful.
Gross margins increased to 8.5% for the fourth quarter from 8.2% in the third quarter of 1998, an increase of 30 basis points.
The improvement in gross margin came from expanded product categories and an improved merchandise mix during the
period. Gross margins for the year finished at 8.2%.
Operating expenses increased over the third quarter levels, due primarily to increased advertising expenditures and
investments in infrastructure. The company expects operating expenses to continue to increase to support brand building and
infrastructure development for anticipated growth.
Losses for the fourth quarter and year ended Dec. 31, 1998, were $1.9 and $4.9 million respectively before the anticipated
non-cash charge for stock-based compensation related to the IPO. The losses per share for the quarter and year were $0.24
and $0.66 before the non-cash charge, respectively. After the non-cash charge, the net losses were $7.2 and $10.2 million or
$0.92 and $1.36 per share, respectively.
The company's balance sheet was strengthened by the proceeds from an initial public offering of common stock on Dec. 4,
1998. The company ended the year with $26.1 million in cash and equivalents.
"In our first quarter as a publicly traded company, we are pleased to report strong growth in our user base and revenues,"
Greg Jones, CEO of uBid, said. "In just over a year we have built a business with annual revenues of $48.2 million and a
registered user base of 229,000. We are proud that our revenue of $24.1 million in the fourth quarter was basically equal to
the total revenue through the first three quarters of the year.
"We attribute our success to a very strong and rapid acceptance of the uBid concept and are very thankful to our customers
for their business. Our focus on customer service and outstanding values coupled with a solid technology base and excellent
distribution capabilities continues to drive recognition and loyalty," Jones continued.
"Repeat customers accounted for 69% of our orders outstanding, considering the near doubling in our registered user base.
We added 109,000 additional registrants in the fourth quarter bringing the total to approximately 229,000, an increase of over
91% from the third quarter. In the quarter, the amount of users we added was near equal to the total registered user base for
the first three quarters of the year.
"Page views averaged over a million per day, and unique daily visitors to the site averaged over 50,000 during the quarter, an
increase of 73% over the third quarter. We saw strong growth in all of our product categories, including PCs and related
products and have experienced no supply shortages.
"In addition to these successes, we are positioning ourselves for further growth by continuing to expand our auction
categories, adding sports and recreation products, in the first quarter."
"All indications are that the uBid concept is developing momentum and we continue to validate the online auction as a superior
shopping experience," said Frank Khulusi, chairman and CEO of Creative Computers.
The company completed its initial public offering of common stock in December, and the proceeds of the offering position the
company to further develop the uBid brand. In addition, during the quarter, uBid strengthened its management team with the
addition of Tom Werner from Gateway (NYSE:GTW) as its CFO, and expanded its board with the addition of Norm Wesley,
president and COO of Fortune Brands (NYSE:FO).
uBid is an online auction house that offers consumers and small- to medium-sized businesses excess, refurbished, close-out
and limited edition merchandise through live-auction bidding. The company's Internet auctions feature a rotating selection of
brand name computer, consumer electronics, home/leisure and sports/fitness products.
uBid is publicly traded, with headquarters in the greater Chicago area, and is a subsidiary of Creative Computers. More
information may be obtained on the company's Web site at www.ubid.com.
This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Act of 1934, as amended. Such forward-looking statements include management's
current view of future events and operations and statements regarding the company's future growth and market size, its
views on the online auction model, the company's plans to expand its supplier relationships and add new categories, which
are subject to change. Such statements involve certain risks and uncertainties, and actual results may differ materially from
those discussed in any forward-looking statement. Factors that could cause actual results to differ materially from such
forward-looking statements include the company's limited operating history and its ability to manage growth; the company's
ability to maintain relationships with vendors and other online companies; competition from other online auction providers; and
changes in Internet technology and consumer demand. Additional factors that could cause actual results to differ are
discussed in "Risk Factors" and other sections of the company's Prospectus dated Dec. 3, 1998, as part of the company's
Registration Statement on Form S-1, as amended, with the Securities and Exchange Commission. (The company does not
undertake to publicly update or revise any of its forward-looking statements even if experience or future changes show that
the indicated results or events will not be realized.)
uBid Inc.
Statements of Operations
(in thousands, except per share data)
Three Months Year Inception
Ended Ended (April 1 to
Dec. 31, Dec. 31, Dec. 31)
1998 1997 1998 1997
Net sales $ 24,107 $ 9 $ 48,232 $ 9
Cost of sales 22,064 8 44,257 8
Gross profit 2,043 1 3,975 1
Operating expenses:
Sales and Marketing 1,476 10 2,829 10
Technology and development 328 66 1,022 66
General and administrative 2,150 212 4,856 212
Total operating expenses 3,954 288 8,707 288
Loss from operations before
stock based compensation (1,911) (287) (4,732) (287)
Stock based compensation 5,267 -- 5,267 --
Loss from operations (7,178) (287) (9,999) (287)
Interest income (74) -- (74) --
Interest expense to parent 85 26 244 26
Net interest expense 11 26 170 26
Net loss $ (7,189) $ (313) $(10,169) $ (313)
Basic and diluted
loss per share $ (0.92) $(0.04) $ (1.36) $(0.04)
Shares used in
computation of
basic and diluted
loss per share 7,855 7,330 7,461 7,330
uBid Inc.
Balance Sheets
(in thousands, except share data)
Dec. 31,
1998 1997
ASSETS
Current Assets:
Cash $ 26,053 $ --
Accounts Receivable, net of allowances
of $20 at Dec. 31, 1998 623 9
Merchandise Inventories 7,235 2
Prepaid expenses and other 195 20
Total current assets 34,106 31
Fixed assets, net 519 327
Total assets $ 34,625 $ 358
LIABILITIES & STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 9,014 $ --
Accrued expenses and other
current liabilities 2,371 --
Due to Parent 1,277 --
Total current liabilities 12,662 --
Note payable to parent 3,331 670
Stockholders' equity:
Preferred stock, $0.001 par value:
10 million shares authorized;
no shares issued or outstanding -- --
Common stock, $0.001 par value;
20 million shares authorized;
9,146,833 shares issued and outstanding 2 1
Additional paid-in capital 35,580 --
Deferred compensation (6,468) --
Accumulated deficit (10,482) (313)
Total stockholders' equity 18,632 (312)
Total liabilities & stockholders' equity $ 34,625 $ 358
CONTACT: uBid Inc., Elk Grove Village
Tom Werner, 847/860-5000
or
Miller Shandwick Technologies
Kristin Thomson/Lynne Daily, 310/203-0550 |
