eCOST stock slammed on weak results (ECST 2Q05 earnings results)

eCOST.com (ticker: ECST) reported Q2 2005 earnings results earlier this week. Key stats from the quarter:

Q2 Results
(all percentage changes and comparisons are year on year, unless stated otherwise)

• Revenue rose 5.8% to $41.0 million below consensus estimate of $53.7 million.
• Gross margin was 6.7% vs 9.7%.
• SG&A expenses rose 51.5% to $5.7 million.
• Operating loss of $3.0 million vs operating income of $8,000.
• Pre-tax loss of $2.9 million vs gain of $8,000.
• Net loss of $9.4 million vs net income of $5,000, and a loss of $1.7 million in Q1 2005.
• Diluted loss per share of $0.54 vs $0.00, and vs consensus loss of $0.09.

Balance Sheet

• Cash and equivalents of $6.3 million as of June 30, 2005.

Other Stats

• Total customers rose 49.6% to 1,287,321.
• Active customers rose 59.0% to 536,172.
• New customers rose 5.8% to 75,202.
• Number of orders rose 4.8% to 122,753.
• Average order value rose 3.2% to $352.
• Advertising expense rose 22.9% to $1.5 million.

ECST chart.

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