Seeking Alpha
Long/short equity, tech, ETF investing
Profile| Send Message|
( followers)  

Red Envelope (ticker: REDE) reported Q1 2006 earnings results that missed consensus EPS estimates by $0.01. Key stats from the quarter:

Q1 2006 Results
(all percentage changes and comparisons are year on year, unless stated otherwise)

  • Net revenue rose 18.2% to $25.0 million vs consensus estimate of $25.64 million.
  • Gross margin was 53.0% vs 53.2%.
  • Operating expenses rose 23.8% to $15.1 million.
  • Fulfillment expenses were flat at $3.4 million.
  • Marketing expenses rose 38.8% to $6.9 million.
  • G&A expenses rose 25.3% to $4.8 million.
  • Operating loss of $1.8 million vs a loss of $948,000.
  • Net loss of $1.8 million vs a loss of $952,000.
  • Loss per share of $0.20 vs loss of $0.11, and vs consensus loss of $0.19. 

Other Stats

  • Net revenue from existing customers represented 55% of total net revenue.
  • Net revenue per order increased to $80 from $76 in Q1 2005.
  • Gross profit per order increased to $42 from $40 in Q1 2005.
  • Jewelry was the largest product category representing 27% of net revenue.
  • REDE shipped 312,000 orders, an increase of 12% over Q1 2005.

FY 2006 Guidance (re-iterated from last quarter)

  • Revenue growth of at least 20%.
  • Positive net earnings.
  • Capital expenditures of approximately $3.5 million in line with its currently anticipated depreciation expenses for fiscal year 2006.

Balance Sheet

  • Cash and equivalents of $2.2 million and short-term investments of $14.5 million as of July 3, 2005.

REDE chart.

Rede83


Not subscribed to The Internet Stock Blog?
You can get updated headlines for free by adding The Internet Stock Blog to your My Yahoo page. Just log into your My Yahoo
page, then go to The Internet Stock Blog and click on the "+ My Yahoo"
button on the top right of your screen. You can do the same for other sites, such as The China Stock Blog, ETF Investor, Radical Guides and Seeking Alpha.

Source: Red Envelope misses, re-iterates FY06 guidance (REDE 1Q06 earnings results)