U.S. Auto Parts 2Q07 Operating Metrics and Important Conference Call Quotes

Below is a quick snapshot of a few key metrics associated with U.S. Auto Parts (PRTS) (online automotive aftermarket parts retailer) 2Q07 results. . .

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Where could conversion rates go over the next couple years?

Source: William Morrison, JMP securities, US Auto Parts 2Q07 earnings conference call. August 2, 2007

So, our hopes are to get to the conversion rate up to industry standard, which I feel is around 2% - 3%. And as you know we barely implemented the Omniture, and we are seeing some very good data coming through, we are analyzing the data and having a lot of quite interesting learnings that we will definitely be taking advantage of.

Several other initiatives as I mentioned earlier are on track and underway such as site search, so customers can better find and navigate what they are looking for. As well as our unified catalogue, which will do a better job of helping to produce the right products for the customer. So merchandising initiatives. As well as our email campaigns. So several initiatives that will help us against that benchmark of 2% -3%.

Source: Howard Tong, Chief Operating Officer, US Auto Parts 2Q07 earnings conference call. August 2, 2007

And just to put a little color to this, with the company's current 22 million unique user base and $125 order value, a 2% conversion rate works out to $55 million in net sales for the quarter and a 3% conversion rate would work out to $82.5 million.

This means even if U.S. Auto Parts kept the same number of people coming to their site, but only improved the amount of people they converted into buyers of products (to the industry average of 2% - 3%,) revenues could be anywhere from 30% to 95% higher.