Egghead.com Posts $35 Million Loss
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Egghead.com Inc., which recently transitioned from bricks and mortar to virtual stores, reported a net loss for the fourth quarter of fiscal 1998 of $35.0 million, or $1.51 per share.
That compares to a net loss of $35.9 million or $2.04 per share for the comparable period of fiscal 1997.
The loss for the fiscal 1998 fourth quarter includes a $37.6 million charge for the closure of all retail stores.
The company's consolidated net sales for the fourth quarter of fiscal 1998 were $74.5 million, a decrease of 16% from $88.9 million a year earlier. Fiscal 1998 fourth quarter net sales include $24.5 million of liquidation sales related to the closing of 80 stores as part of the previously announced reorganization. Ongoing operations achieved revenues of $30.5 million in the fiscal 1998 fourth quarter.
In commenting on the fiscal 1998 fourth quarter, Egghead.com CEO George Orban said: "Closing the retail stores in favor of repositioning Egghead as an internet commerce company culminates an 18-month period of dramatic change. The level of revenues achieved by our ongoing operations in the past fiscal quarter exceeded our expectations as did our cash position of $67 million."
Separately, Egghead said it entered into agreements with TheGlobe.com and Infobeat.com, further expanding the company's Internet marketing efforts.
The new agreements will integrate sales of Egghead.com's computer products merchandise through each of the partners' Web sites. Earlier this year, Egghead.com announced marketing partnerships with GeoCities, CNET, Yahoo! and USA.Net.