Buy.com Losses Widen as Sales Plunge
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Struggling Internet retailer Buy.com Inc. said Wednesday its first-quarter loss widened as revenue tumbled and the company had costs from a restructuring plan.
The loss for the three months totaled $45.2 million, or 33 cents a share, including a charge of $34.7 million for restructuring costs and other items. A year earlier, the Aliso Viejo company lost $32.8 million, or 28 cents a share.
Sales fell 40% to $124.6 million, and the company said it expects second-quarter revenue to be even lower.
The company announced the results after U.S. markets closed. The stock, which has lost more than 90% of its value, fell to as low as 40 cents a share in after-hours trading after closing at 73 cents, up 18 cents a share, on the Nasdaq market.
Buy.com eliminated 125 jobs, or about half of the company’s work force, and appointed a new chief executive and a new chief financial officer during the quarter. The company also sold its United Kingdom Web business and closed its Canadian Web site in an effort to reduce losses and conserve cash.
Operating expenses, excluding restructuring costs, fell by $10.8 million, the company said.
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