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Buy.com to sell UK ops

Bigger than expected Q4 loss

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Buy.com recorded bigger than expected losses for the fourth quarter, and said it is to sell its UK operations.

The company said it had recently signed a Letter of Intent to sell its UK business, which it launched last year, to a "European entity". It expects the deal to close in the first quarter. It will also shut is Canadian business tomorrow, and has chopped 25 staff.

The e-tailer saw losses of $27.4 million, or 20 cents per share, compared with a loss of $40.9 million, or 44 cents per share, for the same period in 1999. Analysts had forecast a loss of 19 cents per share.

Sales for the quarter ended December 31 dropped two per cent on the previous year's Q4 to $196.7 million.
It said its main business for 2001 will include computer, software, consumer electronics and wireless product sales.

For Q1, revenue is expected to be $132 million to $137 million, with gross margins at 10.5 per cent and $11.5 per cent. For the full year 2001, sales are forecast at $580 million to $600 million, with pro forma net loss at less than five per cent of sales - or around $30 million. It expects to see positive operating cash flow in Q4 this year. ®

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Buy.com prepares assault on UK
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