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