Bidz Website Falls 12 Percents In Third Quarter
To $21.8 million...Bidz.com reported that third quarter revenue fell 12 percent to $21.8 million and the online auction website widened its loss to $614,000 from $58,000 one year ago. Bidz.com continued to operate without any debt, and at the close of the quarter on September 30, 2010, the company held approximately $5.5 million in cash and $26.6 million in positive working capital.
During third quarter, Bidz.com realized business-to-business (B2B) sales of $1.1 million, up from $917,000 one year ago. Bidz.com informed investors that there continues to be an "overall slowdown in consumer demand for jewelry."
The average selling price per order of jewelry increased by approximately 2 percent to $190. The company's acquisition costs per new buyer decreased by approximately 29 percent to $46, reflective of the company's increased attention on managing the ROI.
As a percentage of sales, Bidz.com reported that U.S. revenue accounted for 56.7 percent of the total while international sales accounted for 43.3 percent, which was up from 38 percent in third quarter 2009.
"We remain committed on positioning ourselves to return to growth both in the near-term and on an ongoing basis," stated, Leon Kuperman, president of Bidz.com.
"We will continue to focus on expanding our product offering as we approach the holiday season and 2011. Internationally, we continue to see healthy demand for our brands, particularly in Canada, Australia, Saudi Arabia and Spain, and we are confident we are taking the necessary steps to meet our goals."
By: Jeff Miller
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