Ysell, here's UBid's 1st quarter results:
Bid Online Auction Announces First Quarter Financial Results; Revenue Growth of 42% and Registered
User Growth of 65% Over the Fourth Quarter of 1998
uBid Online Auction Announces First Quarter Financial Results; Revenue
Growth of 42% and Registered User Growth of 65% Over the Fourth Quarter
of 1998
ELK GROVE VILLAGE, ILL. (April 22) BUSINESS WIRE -April 22, 1999-- uBid
Auction Community Nears Launch, Over 100 Merchants Approved
uBid Inc. (Nasdaq:UBID), a leading online auction e-commerce site,
Thursday announced the financial results for the first quarter ended
March 31, 1999.
uBid announced record revenues and registered users for the quarter
ended March 31, 1999. Revenues for the first quarter of 1999 were $34.3
million, an increase of 42% over the fourth quarter of 1998, and 1,554%
above the $2.1 million recorded in the first quarter of 1998.
Registered users increased to more than 377,000, representing growth of
65% over the fourth quarter of 1998 and 1,408% compared with the first
quarter of 1998. This compares with 25,000 registered users at the end
of the first quarter of 1998.
"We are delighted with the growth in our registered user base and
revenues this quarter," said Greg Jones, CEO of uBid. "To have this
type of growth coming off an exceptionally strong fourth quarter
holiday season clearly indicates that the online auction concept has
become a strong segment of e-commerce. In addition, we maintained a 66%
repeat buying rate even with the enormous amount of new users we
registered in this quarter and the fourth quarter of 1998. Page views
averaged over 53.9 million per month, and unique daily visitors to the
site averaged over 85,000 during the quarter. Our total unique daily
visitors in the quarter increased to 7.6 million, an increase of 67%
over the fourth quarter of 1998.
"We added two exciting new categories to our site during the quarter.
The Sports and Recreation category was added midway through the
quarter, and at the end of the quarter we added the Jewelry category to
our lineup, and early customer acceptance has been very positive.
Earlier this week, we rolled out a completely revamped website, to
further enhance the uBid shopping experience and to accommodate our
upcoming launch of the uBid Auction Community(TM). This quarter we also
focused on securing supplier relationships with major manufacturers,
and have sourced from over 300 vendors and are authorized direct
distributors with over 100 manufacturers.
"We are totally focused on the auction format, and will continue to
expand the type and frequency of auctions as we move forward. As part
of our expansion, we also have announced the formation of the uBid
Auction Community(TM)," continued Jones.
uBid Auction Community
Perhaps the most important and exciting development at uBid is the
upcoming launch of the uBid Auction Community(TM) which allows
merchants and suppliers of all sizes to place their products up for
auction within the uBid site. The Auction Community(TM) is a
significant addition to uBid's current auction offerings, and is a key
initiative in the Company's strategy to continue to develop uBid as an
auction portal for suppliers and customers alike.
"We have already had over 300 suppliers apply for membership in the
Auction Community(TM). Vendor response has been phenomenal," said
Jones. "Merchants have been aggressively courting uBid to sell their
merchandise through the uBid Auction Community(TM). The site will be
launched with more than 100 charter merchants and should quickly grow
from there," said Jones.
In a report released last month, Forrester Research estimated that the
total value of online auctions would grow from $1.4 billion in 1998 to
$19 billion in 2003. By 2003, business-to-consumer sales is estimated
to comprise 66% of total Internet auction sales, about $13 billion,
according to the published report. Financial Overview
Revenues increased 1,554% over the first quarter of 1998, and were up
42% over the fourth quarter of 1998. Gross margins increased twenty
basis points over the fourth quarter of 1998 to 8.7% due to new higher
margin categories and advertising revenues. Operating expenses
increased over fourth quarter 1998 levels to $5.6 million, due to
increased advertising expenditures and investments in infrastructure,
but remained fairly steady with fourth quarter levels as a percentage
of sales at 16.5%. Losses for the first quarter of 1999 were $2.5
million before the anticipated non-cash charge of $885,000 for
stock-based compensation related to the IPO. The loss per share for the
quarter was $0.27 before the non-cash charge and $0.37 after the
charge.
uBid's balance sheet for the first quarter remained strong as a
continued benefit from the December 4, 1998 initial public offering.
The Company used almost no cash during the quarter. uBid ended the
quarter with $25.9 million in cash and equivalents as compared to $26.1
million at December 31, 1998. About uBid
uBid is a leading online auction e-commerce site offering merchandise
through live-action bidding using sophisticated auction technology. The
company's Internet auctions feature a rotating selection of brand-name
computers, consumer electronics, housewares, jewelry, gifts and
sports/recreation products.
uBid is committed to providing customers with the highest-quality
auction experience on the Internet and offers supplier warranties on
most products. uBid also meets Better Business Bureau Online standards.
uBid, with headquarters in Illinois, is a publicly traded company
(Nasdaq: UBID) and a majority-owned subsidiary of Creative Computers
(Nasdaq: MALL). For more information, see the company's Web site at
www.ubid.com.
NOTE: uBid's Quarterly Conference Call can be heard over the Internet
at http:// www.vcall.com. To listen to the live call, please go to the
Web site at least 15 minutes prior to the 5:00 p.m. (EST) call on
Thursday, April 22, 1999, to register, download and install any
necessary audio software. A replay will also be available shortly after
the call and a transcript will be available within 24 to 48 hours.
uBid, Inc.
Statements of Operations
(in thousands, except per share data)
Three Months Ended
March 31,
1999 1998
Net sales $34,314 $ 2,075
Cost of sales 31,337 1,891
Gross profit 2,977 184
Operating expenses:
Sales and Marketing 2,660 144
Technology and development 644 142
General and administrative 2,341 762
Total operating expenses 5,645 1,048
Loss from operations
Before stock based compensation (2,668) (864)
Stock based compensation 885 --
Loss from operations (3,553) (864)
Interest income (271) --
Interest expense to parent 70 31
-- --
Net interest expense (income) (201) 31
-- --
Net loss $( 3,352) $ (895)
Basic and diluted loss per share $ (0.37) $ (0.12)
Shares used in computation
Of basic and diluted
Loss per share 9,147 7,330
uBid Inc.
Balance Sheets
(in thousands, except per share data)
March 31, December 31,
1999 1998
ASSETS
Current Assets:
Cash $25,909 $26,053
Accounts Receivable net
of allowances 482 623
Of $41 and $20, respectively
Merchandise Inventories 7,987 7,235
Prepaid expenses and other 164 195
--- ---
Total current assets 34,542 34,106
Fixed assets, net 1,165 519
Total assets $35,707 $34,625
LIABILITIES & STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $12,275 $9,013
Accrued expenses and
other current liabilities 3,019 2,371
Due to Parent 910 1,277
Total current liabilities 16,204 12,661
Note payable to parent 3,331 3,331
Stockholders' equity:
Preferred stock, $0.001 par value:
10,000,000 shares authorized; no shares
issued or outstanding -- --
Common stock, $0.001 par value;
20,000,000 2 2
Shares authorized; 9,146,833 shares issued
And outstanding
Additional paid-in capital 37,138 37,138
Deferred compensation (7,140) (8,025)
Accumulated deficit (13,828) (10,482)
Total stockholders' equity 16,172 18,633
Total liabilities & stockholders' equity $ 35,707 $ 34,625
NOTE TO EDITORS: All product and company names herein may be trademarks
or registered trademarks of their respective owners.
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 Exchange Act of 1934, as amended. Such
forward-looking statements include management's current view of future
events and operations and statements regarding uBid's views on the
online auction model, the growth of the auction concept generally, and
the Company's plans to expand its supplier relationships and add new
categories, all of 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; product
acceptance by customers of newly-added auction categories; 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 "Investment Considerations" and other
sections of uBid's Annual Report on Form 10-K for the year ended
December 31, 1998, on file with the Securities and Exchange Commission
and in its other periodic reports filed from time to time with the
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.)
-0- AJE/la*
CONTACT: uBid Inc., Elk Grove Village
Gerald Saltarelli, 847/860-5000
geralds@ubid.com
or
Miller/Shandwick Technologies
310/203-0550
Kristin Thomson, kthomson@miller.shandwick.com
Lynne Daily, ldaily@miller.shandwick.com |
