"Over the last six months we have focused on growing OTC revenues and improving operational efficiencies to set the stage for a break-out fourth quarter -- our strongest seasonal period. In the fourth quarter, we expect adjusted EBITDA to more than double sequentially and believe that this positive momentum will continue throughout 2008. Driving this improvement will be the continued growth of our OTC revenues and the success of our growth and profitability initiatives, many of which are already showing positive traction in the current quarter. For example, we have seen an uptick in drop ship sales with the roll-out of Halloween costumes, demonstrating that we can drive seasonal drop ship products. Additionally, almost 10% of OTC transactions in recent weeks have migrated to alternative payment options since the completion of our roll-out of Bill Me Later, Google Checkout and PayPal. Most importantly, the re-launch of our Beauty.com(TM) website with a more personalized, up-close shopping experience has led to a significant increase in traffic and orders. Based on this, we expect Beauty.com year-over-year growth of more than 50% in the fourth quarter," concluded Ms. Lepore.
GAAP net loss for the third quarter of 2007 was $2.4 million, or $0.02 per share, compared to a net loss of $2.6 million, or $0.03 per share, for the third quarter of 2006. The third quarter losses include $2.1 million and $1.8 million, in non-cash stock-based compensation expense for 2007 and 2006, respectively.
Outlook for Fourth Quarter 2007
For the fourth quarter of 2007, the company is targeting net sales in the range of $120.0 million to $125.0 million, net loss of $0.5 million to net income of $0.5 million, and adjusted EBITDA in the range of $4.2 million to $5.2 million.
Financial and Operational Highlights for the Third Quarter of 2007
(All comparisons are made to the third quarter of 2006)
Key Financial Highlights:
|SOURCE drugstore.com, inc.|
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