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RealTime IT News

Egghead Auction Site Enjoys First-Year Growth

Egghead.com, Inc. today reported substantial revenue growth and a sharp increase in registered bidders for its Surplusauction Internet auction site after its first full year of operation.

In the fiscal quarter ending June 27, 1998, which marked Surplus Auction's first anniversary, it recorded revenues of $13.7 million compared with $7.0 million in the preceding quarter, an increase of 95.7%. Total auction revenues for the first year of operation were $28,209,000.

Total registered bidders also grew from 29,000 as of September 27, 1997, to 168,000 by June 27, 1998, according to Egghead.

"Our auction growth has reflected the enormous potential of electronic commerce and recently included brisk sales of Windows 98 drawing thousands of new bidders to our site with a nationally promoted $1.00 starting bid," said George Orban, Egghead.com's chairman and CEO.

Surplusauction currently holds up to 15 auctions per week. It created the fast-paced "hyper-auctions" feature where bidding is limited to one hour, and the "mega-auctions" service which is generally held over weekends. Mega auctions feature bidding on large quantities of specific hardware and software products.

Egghead operates three Internet commerce sites: www.egghead.com, www.suplusdirect.com and www.surplusauction.com.

The company announced plans in January of this year to shift its business focus to Internet commerce and close its retail store network.