Buy.com to sell UK ops
Bigger than expected Q4 loss
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. ®