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RAPAPORT...
Bidz.com reported that its net revenue dropped 27 percent year on year to $18.1 million for its first quarter that ended on March 31. The online retailer reported a net loss of $1.48 million, up from a loss of only $382,000 one year ago. During the quarter, the average selling price slipped 5.4 percent year on year to $177 and the number of new buyers fell by 26.3 percent to 30,010. The acquisition cost per new buyer rose 45 percent to $58. Gross margin increased 160 basis points to 29.6 percent. David Zinberg, Bidz.com's chief executive, said that the company's year was off to a challenging start for the main website, but he was ''encouraged by the significant growth'' in sales from sister website Modnique.com as they enhance the product assortment and overall shopping experience. The company ended the first quarter with $1.6 million in cash and $21 million in working capital with no debt. Bidz.com stated that cash currently on hand and cash flows from operations will be sufficient sources of capital to continue funding its operations for the foreseeable future.
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